Q. "Am I required to pay overtime to employees who work on holidays?"

Answer:

Generally, no. Whether you pay extra for work done on holidays is up to you. There is no federal law that requires an employer to pay extra.

As for overtime, if an employee has already worked 40 hours during that workweek and then works on a holiday the holiday should be paid at the applicable overtime rate. While usually not required by law, offering additional pay for work on holidays can be a nice financial incentive and reward.

A few suggestions if you decide to pay extra for holiday work:

• Pay time and a half (or double time) for all holidays hours worked

- OR -

• Add an extra eight hours (or whatever hours they worked) to the checks of employees who worked

- OR -

• Place eight hours into a “floating holiday” bank for employees who worked so they can take that paid time off within 30 days.

If you decide to provide additional pay for holidays, be sure to do so in a non-discriminatory and consistent manner for all employees.

Please Note: Massachusetts and Rhode Island, require work for certain organizations on holidays to be voluntary and paid at time and a half. If your organization is in one of those states or you have staff there, check for the specific requirements.