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New Mexico Holiday Pay

Posted by Tamara

Holiday pay, by most Human Resource departments, is defined as extra pay a worker receives for a day off from work on a holiday.  Most companies recognize about 5 to 7 traditional holidays, such as Thanksgiving Day or the Fourth of July, as holidays for their employees.  But, there is no federal or state law that requires an employer to pay for these days off.  This is a job benefit the company can offer and the number of holidays an employee could get on their particular job is usually spelled out in the company handbook.


There is no federal or state law that requires an employer to pay an employee above their regular rate for working on a holiday.  There also are no regulations that require an employer to pay extra for working nights or weekends, unless doing so would be above 40 hours in a workweek.


Here are some examples.  Joe works as a forklift driver in a busy warehouse.  There are many orders that need to be filled.  Joe’s boss asks him if he would mind working on the Fourth of July.  Joe has no plans and he agrees.   If Joe’s company recognizes the Fourth as a paid holiday and it falls during the week, he would be paid for his normal 40-hour workweek plus 8 hours for the holiday.  What if Joe worked 48 hours during the week that contained the holiday?  Joe would be entitled to 40 hours of regular pay, 8 hours of overtime and 8 hours of holiday pay.


Some New Mexico companies pay a premium rate for working the holiday in addition to the paid holiday.  If Joe’s boss decided to pay time-and-a-half for working a holiday during a regular 40 hour week then he would receive 32 hours at the regular rate, 8 hours at the overtime rate of time-and-a-half, and 8 hours at the regular rate for holiday pay.   

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