The holiday season often brings long hours, extra shifts, and packed schedules, especially in industries like retail, healthcare, and hospitality. While many people assume that working through the holidays automatically means higher pay or special benefits, the truth is a bit more complex. At Stark Law Group, we want employees and employers alike to understand what the law actually says about holiday pay, overtime, and time off.
Contrary to popular belief, private employers are not legally required to offer paid holidays. Federal law does not mandate extra pay for working on a holiday, nor does it require that employees receive the day off. Whether or not holiday pay is provided typically depends on company policy, employment contracts, or collective bargaining agreements.
However, if your employer’s handbook or employment agreement specifies that certain holidays will be paid, or that employees will receive premium pay for working those days, they are legally obligated to honor those terms. Always review your company’s policies and keep documentation for reference.
Overtime During the Holidays
Overtime pay rules remain the same throughout the year, holidays included. Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive time and a half for all hours worked over 40 in a single workweek. As a reminder a “non-exempt” employee is someone who is paid on an hourly basis and an “exempt” employee is someone who is paid a salary.
This means that if you work extra hours due to holiday demand, you’re entitled to overtime pay, but not simply because it’s a holiday. The determining factor is the total number of hours worked in that week, not the day those hours occur. Employers must track time accurately to ensure workers are properly compensated.
Holiday Scheduling and Religious Accommodation
Many businesses remain open through the holidays, and employers generally have the right to require employees to work during these times. However, employees who cannot work specific days due to sincerely held religious beliefs may be entitled to reasonable accommodation under Title VII of the Civil Rights Act.
Employers should handle these requests carefully and in good faith. Denying an accommodation or disciplining an employee for observing a religious holiday could lead to a discrimination claim.
Holiday Bonuses and End-of-Year Pay
While some companies offer holiday or year-end bonuses, these are typically discretionary unless promised in writing. A guaranteed or performance-based bonus may be considered part of an employee’s earned wages, meaning employers are legally required to pay it once earned. If a bonus was clearly promised or tied to measurable performance goals, failure to pay may violate wage and contract laws.
Time-Off Requests and Workplace Balance
Even when paid holidays aren’t guaranteed, many employers encourage employees to take time off during the season. Employers should handle time-off requests consistently and without favoritism, particularly if multiple employees request the same days off. Employees, meanwhile, should submit requests early and follow established procedures to avoid misunderstandings.
The holiday season can be stressful enough without confusion about workplace rights. Understanding how holiday pay, overtime, and time-off laws really work can help prevent disputes and ensure fair treatment for everyone.
If you believe your employer has failed to compensate you correctly or has violated your rights this season, Stark Law Group can help. Our team is dedicated to protecting workers and promoting fair workplaces across Pennsylvania.