Labor & Employment Law Blog

Among the key information provided on the DIR’s “Holidays” webpage is the fact that California law does not require employers to (1) provide employees with paid holidays, (2) close their business for holidays, (3) give employees the day off for particular holidays, or (4) pay a special premium rate for hours worked on a holiday, other than any overtime that may be due to a non-exempt employee in accordance with the usual overtime requirements. However, an employer may have such holiday obligations pursuant to its own policies or practices, under the terms of a collective bargaining agreement, or per an employment agreement between the employer and employee.

The DIR also opines that the determination of whether overtime pay is due is based on “hours worked,” and not upon pay received. Thus, holiday pay does not count for overtime purposes towards the calculation of whether the employee worked more than 8 hours in the workday or 40 hours in the workweek.  That said, employers must pay employees for all of their working time, including any time spent working on a holiday, at the appropriate base or overtime rate of pay.

Employers should take note of the requirement at Section 51.6.14 of the DLSE Manual that deductions cannot be made from the salary of an exempt employee due to absences occasioned by the employer, such as a holiday closure, provided that some work is performed by the employee within the workweek.

Key Takeaways

• While California law does not require paid holidays or holiday closures, an employer’s own policies, practices, or collective bargaining or other agreements may impose such obligations.
• Employers should review their holiday obligations to ensure they are administered consistently and correctly and that they are clearly communicated to employees.
• Exempt salaried employees may need to be paid on a holiday closure, even if the employer has no established holiday pay policy or practice.

Employers with questions regarding holidays may contact the authors of this post or their usual employment law counsel at AALRR.

This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.

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