“We just had my first Thanksgiving as an employer and I didn’t pay my employees for the holiday. Some of my employees said I was supposed to pay for holidays. Since we have more holidays coming up soon I need to know what I’m supposed to do.”
My HR survival tip
You aren’t legally required to offer any holiday pay… it’s truly a benefit you can offer or not. There are several considerations with holidays. Paid holidays can certainly help when recruiting and hiring employees but they are an added expense. Think through the holiday benefit so you’re better prepared.
If you close on an unpaid holiday but need one of your non-exempt (hourly) employees to work on that holiday, are you paying them their regular hourly rate, extra pay for working the holiday, or what?
If you offer holiday pay, what if that day isn’t a day they normally work? Again, what if someone has to work that day? Is there an eligibility period before someone is able to get holiday pay? Will you pay only full-time employees or the part-timers, too?
Holiday pay is one of the first benefits normally offered employees. The basic set is (1) New Year’s Day, (2) Memorial Day, (3) July 4th, (4) Labor Day, (5) Thanksgiving, and (6) Christmas. After that, additional holidays often include President’s Day and the day after Thanksgiving.
Many of the holidays fall on a different day of the week each year. That’s why it’s important to create a holiday list that states the actual days you’ll be closed. If you are paying for holidays, add the eligibility information to the bottom of that page so there are no misunderstandings.
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