When holidays come around, many employees are expected to get paid for the time off, however, that is not always the case. In California, there are no rules that guarantee pay for holidays even if it falls on a regular workday. While most employers will choose whether to give compensation as part of their benefits package, they are usually not required to do this by law.
How holiday pay is managed will come down to company policy and knowing how your employer treats employee time during holidays, whether through paid time off, premium pay, or regular wages, can make a notable difference in knowing what to expect.
What Holidays Do We Get Paid for in California?
In California, there is no set list of holidays that employees are legally entitled to be paid for. Under the Fair Labor Standards Act (FLSA), holiday pay is not mandatory for private sector employees. This means that employers are not required to give paid time off or extra compensation just because a holiday falls on a workday. Whether you receive holiday pay will depend on your employer’s internal policies, employment contract, or collective bargaining agreement.
There are companies that may voluntarily give paid holidays as part of the employee benefits package. Many employers who offer to provide compensation will choose to follow commonly recognized federal holidays, such as:
- New Year’s Day
- Martin Luther King Jr. Day
- Memorial Day
- Independence Day (4th of July)
- Juneteenth
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
Some companies will create a flexible structure. For instance, they can offer a fixed set of paid holidays or floating holidays that workers can use at their discretion. Since there is necessarily no legal requirement, holiday pay rules will vary depending on the employer, the industry, and workplace culture.
Do Federal Workers Get Holiday Pay?
Keep in mind that federal employees are treated differently from private-sector workers. While federal employees typically receive paid holidays set by law, private employees only get holiday pay if their employer offers it.
The only way for you to know which holiday you are paid for will be to look into your employer’s handbook or HR policies. These will highlight the days that are recognized as paid holidays, if you are eligible to receive such compensation, and any other conditions that may apply.
Is Holiday Pay Mandatory Under California Law?
Holiday pay is not legally enforced under California law, because there is no federal requirement in the FLSA that makes holiday pay mandatory, and state laws usually follow a similar framework. The FLSA (29 U.S.C. § 206–207) focuses on minimum wage and overtime pay for hours worked, however, it does not require employers to compensate employees for the time not worked, including holidays. Simply put, both state and federal laws do not obligate private employers to provide holiday pay.
If a business is closed for a holiday, it does not have to provide time off unless there was a promise made to do so through company policy, contract, or collective bargaining agreement.
With that said, many employers still offer holiday pay voluntarily as a benefits package. Offering pay for major holidays, like Labor Day or Memorial Day, is usually seen as a competitive advantage. Many businesses do this to retain talent, improve morale, and create a positive workplace culture even though they are not obligated to have this done under state and federal laws.
Is There a Required Holiday Pay Rate or Minimum?
There is no legally mandated minimum or required rates for holiday pay in California. Since holiday benefits are not enforced by law, employers are given full discretion over whether they want to provide holiday pay, and if so, how much employees will be compensated.
For example, some private companies may give a full day of paid time for holidays not worked whereas others will give partial compensation or even nothing at all. There is no rule requiring premium pay, like time-and-a-half or double pay, just because a day falls on a holiday.
If an employer does choose to provide holiday pay, they will typically use the employee’s regular rate of pay, whether it is the state’s minimum wage ($16.90 per hour) or at a higher baseline rate. While there is no holiday rate for salaried employees, if an employer decides to close for a holiday, they cannot reduce the employee’s predetermined salary for that week without risking their exempt status.
Do You Get Paid Extra for Working on a Holiday?
Employees are not entitled to extra pay for working on a holiday and are generally only compensated for the hours they work. There is no law requiring employers to provide premium pay when a shift falls on a holiday. With that said, many employers choose to offer additional compensation as an incentive because it is common for businesses to provide time-and-a-half or other enhanced pay to ensure adequate staffing. These arrangements are voluntary and are usually stated in company policy.
Whether an employee is granted extra pay will depend on the employer’s approach. Some places will increase wages on holidays to encourage coverage whereas others will pay a regular rate and treat it like it is another day on the job. Unless an employer has promised higher pay in advance, employees should expect to be given standard wages for hours worked on a holiday.
When Does Overtime Apply on Holidays?
The law provides notable requirements for overtime, but it focuses on hours worked not whether the day is a holiday. Non-exempt employees must be given overtime pay when they go over certain thresholds. In California, such pay applies when:
- An employee works more than 8 hours in a single workday
- An employee works more than 40 hours in a workweek
- An employee works a seventh consecutive day in the same workweek (meaning they worked all seven days)
When these thresholds are exceeded, the employee must be compensated at time-and-a-half for the extra hours worked. In some cases, California may also require double-time pay after 12 hours in a single workday or more than 8 hours on the 7th consecutive day of a workweek.
The main takeaway is that a holiday itself cannot trigger overtime. For instance, if an employee is working 8 hours on Labor Day, they are usually given their regular rate. If they work 10 hours, the extra 2 hours would qualify for overtime pay. The same principle applies regardless of whether the job performed falls on a holiday. Overtime is strictly tied to hours worked.
Are Employers Required to Give Time Off on Holidays?
Employers are not required to give time off on holidays, because there is no law that enforces a private business to close or give employees a day off when a holiday falls on a day where they are scheduled to work. While many businesses choose to close or limit work operations, like offices, others places of business such as retail stores and healthcare services will remain open because of the nature of the services they provide.
Although there is no blanket requirement for holiday time off, there are some legal protections available:
- Under California’s Fair Employment and Housing Act (FEHA), employers are required to provide reasonable accommodations for employees who are unable to work because of a sincerely held religious belief or observance. Unless the employer can prove that such a request would cause “undue hardship,” they must allow the employee to take the holiday off.
- According to California law (updated by SB 616), employers are generally required to provide paid sick leave, with at least 40 hours or five days available each year depending on how the company policy is set up. This time can be used to focus on your own health-related needs or taking care of family members.
Can You Use a Sick Day On a Holiday?
Paid sick leave is not meant for general personal use, like taking a holiday off, unless the reason actually falls under one of the allowed categories. In some cases, local laws or company policies may let you use vacation time, PTO, or “Kin Care” to take time off for a holiday. But, that depends on the employer’s rules.
Whether employees are given time off will depend on the employer’s discretion and internal policy. If you want to get time off on a specific holiday, you may be able to use your accrued vacation or PTO, or comply with what the company has established under their standard request-off procedure.
Do All Employees Qualify for Holiday Pay?
Not all employees qualify for holiday pay, because in California, private employers can choose who is eligible in accordance with company policy. Many businesses limit holiday benefits to full time employees whereas part-time staff may not receive the same paid time off. Employers also distinguish between hourly employees and salaried employees, with different rules enforced with how pay is handled.
While holiday pay as a benefit is voluntary, there are strict salary basis rules. If a business is closed on a holiday, an employer cannot generally reduce a salaried exempt employee’s pay for that day as long as the employee worked any part of that workweek.
This is because exempt employees must get their full weekly salary for any week in which they contribute productivity regardless of employer-mandated closures. When it comes to hourly non-exempt employees, they are only entitled to holiday pay if it is promised in an employee handbook, letter, or collective bargaining agreement.
Do Contract Workers Qualify for Holiday Pay?
California’s AB 5 law outlines what constitutes as a contract worker and due to their nature of work, properly classified contractors are not eligible for benefits, including holiday pay and that decision would be entirely dependent on the employer and the company’s policies.
In the end, eligibility will come down to employer policies. There is no rule provided under state and federal laws that promises holiday pay for any specific group of workers. So, whether an employee receives holiday pay will fall entirely on the employer’s discretion.
Can Employers Set Their Own Holiday Pay Policies?
Since holiday pay is not mandated by law, private employers are given the right to create their own policies. They can decide what days they would want to count as a designated holiday, whether to offer holiday pay to workers, and what conditions have to be met to qualify.
Some employers provide a fixed schedule of paid holidays whereas others offer floating holidays that employees can use more flexibly. How these days are treated depends on the employer’s written policy.
If floating holidays act like general paid time off that employees can use at any time, they may be treated as vested vacation under California Labor Code § 227.3 and could require payout upon separation. However, if they are tied to a specific event, such as a birthday or religious holiday, they may be treated like traditional holidays and not require payout.
Some states historically followed “blue laws,” which once required additional pay or restrictions for work performed on Sundays or specific holidays. However, most of these requirements have been either repealed or phased out. For instance, California does not require premium pay for holiday or Sunday work. Private employers generally have flexibility in setting holiday pay policies, which varies by company and industry.
What to Check in Your Employee Handbook or Contract
Since there is no universal legal standard for holiday pay, your employer’s written policies are the most important source of information. Going over these documents can help prevent misunderstandings about your rights and benefits. Pay close attention to:
- A list of recognized holidays and any set holiday schedule
- Whether holidays are paid or unpaid
- Whether employees who work on holidays receive premium pay or standard wages
- Eligibility requirements, like full-time vs. part-time status
- Rules for when a holiday falls on a weekend or non-workday
These details are determined by the employer’s policy and will affect your time off and compensation. Because policies vary, reviewing your handbook or contract is the most efficient way to understand what applies to you.
Contact West Coast Employment Lawyers Today to Get Help With Holiday Pay Disputes
If you believe your employer failed to comply with the company’s holiday pay policy, denied wages you are entitled to, or treated you unfairly, it may be worth seeking legal guidance from an employment law firm. At West Coast Employment Lawyers, we can take a look at your situation, go over your rights, and help you determine whether you have grounds to file a claim. Acquiring professional guidance can help you fully understand what your options are and decide what would be the most effective steps to take moving forward.
To book a FREE consultation, we welcome you to get in touch with us by calling (213) 927-3700 or filling out our quick online contact form.
