With the holiday season’s arrival, CDA Employment Practices Analyst Michelle Coker is hearing from members who have questions about the laws on holiday pay. Here she’s assembled some tips to guide California dentists based on her conversations with callers. The full details can be found in CDA’s member-only Holiday Pay Frequently Asked Questions linked below.
“Having a written holiday policy that is clearly written and defines all aspects of holiday time off and pay will go a long way toward maintaining an efficient and harmonious office,” Coker says. “Following a few best practices will go even further.”
Paid holidays for hourly employees not required for private businesses
Many employees are surprised to learn that federal and state laws do not require employers to provide their employees with paid holidays. Federal and state employees have designated legal holidays, but private employers have no obligation to provide that time. Instead, they can determine which holidays the practice will observe and whether hourly employees will be paid or unpaid. One exception: California employers with five or more employees are subject to the state’s religious discrimination laws and may need to accommodate employees to take time off for religious observance.
“Holiday closure is a little trickier for salaried employees,” Coker said. Salaried employees may need to be paid on a day the practice closes to observe a holiday. In short, if a salaried exempt employee is “ready, willing and able” to work, deductions cannot be made for time that is less than a full week when work is not available.
Additionally, if some employees have the holiday off with pay and others do not, California courts have held that employers must make up the lost benefit in some manner. CDA’s holiday pay FAQ elaborates with example scenarios and a qualifying exemption.
Premium pay for weekend, holiday work not required by state law
California law does not require employers to pay employees premium pay for work they perform on a holiday or weekend day other than overtime pay if the employee worked more than eight hours in a workday or over 40 hours in a workweek.
Employers can provide holiday pay on first business day after holiday
If a designated payday falls on a holiday that is observed on a Saturday or Sunday, employers are allowed by state law to pay their employees on the first business day after the holiday. Holidays in California are listed in the government code.
The practice’s employee manual should include a list of paydays that reflect any exceptions due to state-observed holidays and update and provide the list to employees annually.
Because some holidays fall on different days each year, those dates should be reviewed and updated annually.
If holidays are paid in the practice, limitations may apply
Employers who choose to compensate employees for holidays are not required to provide holiday pay if the holiday falls on a weekend or other day the practice is regularly closed. Employers also are not obligated to pay employees who don’t typically work on a day the holiday falls or is observed.
Using sick pay for holidays should be discouraged
Coker says allowing employees to use paid sick leave for vacation or holidays rather than for its intended use under the California Paid Sick Leave law sets a precedent that makes future such requests harder to deny.
“As a best practice, employers should separate and designate paid sick leave for its intended need and circumstances,” she added.
Find detailed answers for these and other questions in CDA’s holiday pay FAQ, including how to respond if an employee calls in sick the day before the holiday. (Short answer: Do not deny the employee their holiday pay.) Members can also use CDA’s employee manual resources, including a downloadable Sample Employee Manual that contains sample policy language on holiday benefits.