How Does Holiday Pay Work?

When it comes to holiday pay, many workers might assume they’re entitled to extra compensation for working on special days like Thanksgiving, Christmas, or the Fourth of July. However, both California and federal laws treat holidays just like any other business day when it comes to wages.

This means employers are not required to offer special holiday pay. Employees don’t have to be paid extra for working on holidays, no matter the time of day or the holiday itself. For example, if someone works on New Year’s Day, they will earn the same hourly rate they would on a regular Monday.

Similarly, if a business closes on a holiday, employers are not obligated to pay workers for that day, even if it falls on a day they would normally work. For employees, this can mean losing income during holiday closures, which can be especially challenging during the holiday season.

However, there is one important exception. If an employer has an agreement with employees, such as an employment contract or a union’s collective bargaining agreement, that promises holiday pay, they are legally required to follow those terms. In these cases, employees may receive extra pay for working on holidays or compensation for days the business is closed.

Here is a link to the Department of Industrial Relation