Posted by Tamara
Holiday pay in Michigan is completely up to the individual employer. Companies are not required by Michigan law or by federal law to provide paid holidays or to pay overtime for employees who work on holidays.
Most companies do provide paid holidays, usually around 5 to 7 per year. Which holidays are considered paid is set by each company, and are usually defined in the employee handbook.
According to Human Resources pros, “holiday pay” usually refers to additional wages paid to employees who are off work on holidays. Most employers pay workers for the hours they actually worked, plus 8 additional hours for the holiday. The additional hours are usually at the worker’s normal rate.
For example, Jason works 47 hours in a week that contains a holiday. Most employers would pay Jason 40 hours of regular pay, 8 hours of holiday pay (at the regular rate) and 7 hours of overtime. In this case, the worked holiday is considered as a part of the regular work week.
Donna is another example. She is off on New Year’s Day, a paid holiday at her company, and also works 40 hours that week. She would be entitled to 40 hours of pay at the regular rate, and 8 hours of holiday pay, also at the regular rate.
Yes, the total hours on Donna’s paycheck are 48, which by federal and Michigan law should qualify her for overtime pay. Since 8 of those hours were a holiday where she did not work, however, those hours can be paid at the regular rate. Employees are paid overtime only when they work more than 40 hours per week.
There are companies who pay a premium for working on a holiday, and some union contracts require holiday pay. Say Jason’s company pays time and a-half for working on a holiday and a holiday falls on Thursday. Jason might be paid his regular rate for 30 hours, the holiday rate for working 10 hours on Thursday, and the overtime rate for 7 hours. Since holiday pay and overtime are both paid as time-and-a-half, Jason would earn 17 hours of overtime pay in this example.
Last 10 posts by Tamara
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- North Carolina Employee Privacy Act - April 14th, 2011
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