FAQ: Is It Legal to Not Get Time and a Half for Working on the Fourth of July?
Let’s just get right to it: Yes. It’s legal. Keep reading to debunk this HR myth of Holiday Pay in the USA.
Understanding Federal and State Laws:
The Fair Labor Standards Act (FLSA) is the federal law that governs wage and hour standards in the United States. Surprisingly to many, the FLSA does not require employers to pay extra (time and a half) for work performed on holidays. This means that, under federal law, employers are not legally obligated to pay employees extra for working on holidays, including the Fourth of July.
State-Specific Regulations:
While federal law does not mandate holiday pay, some states have specific regulations that may affect holiday compensation, especially in certain sectors or under specific conditions:
California:
Employers are required to pay at least the minimum wage for hours worked, but beyond that, any holiday pay is typically determined by the employer's policy or the terms of a union contract - no law requires holiday pay in CA
Psssst - fun fact: states like Oregon, Washington, Texas, Illinois… New York and even Florida are all in the same boat - no law on the state level requiring holiday pay.
Massachusetts:
Massachusetts has "Blue Laws" that regulate work on Sundays and holidays, particularly in retail establishments. Retail employees in Massachusetts are generally entitled to premium pay (often time and a half) on certain holidays, including New Year's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, and Veterans Day
Rhode Island:
Rhode Island law requires time and a half for work on Sundays and some holidays for retail employees. This applies to holidays such as New Year’s Day, Memorial Day, the Fourth of July, Victory Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas.
Connecticut:
Connecticut mandates that retail employees be paid at least one and a half times their regular rate for working on Sundays and certain holidays.
Company Policies and Collective Bargaining Agreements:
Many holiday pay provisions come from collective bargaining agreements (CBA or union contracts) or employer-specific policies rather than state laws. These agreements and policies often provide holiday pay benefits such as time and a half or double time for working on holidays as an incentive so a business maintains operation when culturally the workforce may want to all request it off.
How does Holiday Pay impact the Employee Experience?
The confusion happens when an employee doesn’t understand their total compensation… or you didn’t outline it clearly in a handbook/manual.
Can you imagine picking up a holiday shift - thinking you get holiday pay, skipping a family event, and instead - not making extra dough?
Candidly - that would suck.
Now you have an employee that feels ripped off, family members that are bummed they missed out on an event - and potentially have loose ends talking bad about your brand.
Sure - that could be dramatic, or it could be a reality.
People chose where they want to work, what products they want to buy and what businesses they want to support.
Don’t have a misunderstanding impact your employer brand, dissuade a future candidate from applying or lose loyal customers - this is an example where HR strategy (read policy/procedure) impact your bottom line.
Practical Steps for Employees/Employers:
Check Your Employee Handbook: This document usually outlines the company’s policies on holiday pay, the days they are applicable and if businesses like to observe holidays on other days. It should be updated every year, check the publishing date of this document regardless of the state you work in.
Ask HR: If you are uncertain about your pay, don’t hesitate to ask your manager, business owner or HR consultant for clarification.
Review State Laws: Some states have specific labor laws that might impact your situation. It doesn’t matter if HQ is in one state, and you work in another - wherever you work, that’s the law that applies. Now, you may be wondering how does it work if you’re a remote company - and the answer is the same, it’s where your physically work. Typically businesses know this information from your W4 in onboarding - you need to update your employer if you move (FYI - that’s another policy that should be in the handbook/manual)
How to add Holiday Pay: Businesses can always “add” - they can’t always take away. If you are an employer struggling with attendance during holiday weekends, you can decide to do time and a half, a spot bonus, catered lunch or other one off incentives to make working on that specific day/weekend appealing to the team. You can literally wake up, pick up popsicles and bring them to work. It doesn’t have to be super formal, just know holiday pay is included in total compensation and can help you attract/retain better talent in the long run.
Keep coming back to this blog to learn things you didn’t learn in school.
And remember, I am not an attorney and this is not legal advice. Please use the referenced links in this blog and remain curious.
Cheers!