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Missouri Holiday Pay

Posted by Tamara

Are Missouri workers entitled to extra wages for working on a holiday? Usually, the answer is no. There is no federal law requiring employers to pay extra for holidays. In fact, there is no state or federal that requires a company to pay extra for holidays, weekends or nights.

Some companies pay a premium, and a higher rate for holidays is often a part of union contracts. There is no law, however, that requires it.

The term “holiday pay”, as defined by Human Resources professionals, usually means the extra pay workers receive for a holiday when that worker is off. The standard for most employers is to pay the employee for an additional 8 hours at the regular rate. Holiday pay – payment for time the employee did not work — is rarely paid at a higher rate.

If an employee works more than 40 hours a week, he or she is required by federal and often state law to be paid overtime. If an employee works extra hours during a week with a holiday, then he or she is not entitled to overtime unless the employee works more than 40 hours in the week.

To illustrate, Kate’s company designates New Year’s Day as a paid holiday, so she doesn’t work that day. During the rest of the week, she works 40 hours. Her paycheck would show 40 hours at the regular rate and 8 hours of holiday pay at the regular rate. Kate is not entitled to overtime.

If Kate worked 47 hours in during that week of New Year’s Day, she would be paid the regular rate for 40 hours, 8 hours of holiday pay at the regular rate and overtime pay for the additional 7 hours. Her overtime rate would be 1.5 times Kate’s usual hourly rate.

Zoe, however, works under a union contract that requires time-and-a-half for working on holidays. If she works 47 hours in a week with a holiday that falls on Thursday, she would be paid 40 hours at the regular rate, and 7 hours of overtime, plus 8 hours of holiday pay. Since the union contract specifies time-and-a-half for holidays, Zoe would be paid a total of 15 hours at the overtime rate.

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