Posted by Tamara
Several New Hampshire employees have asked how many paid holidays employers are legally required to provide for employees.
The answer is none. New Hampshire law doesn’t require companies to provide paid holidays, nor does federal law. Many companies do provide paid holidays, usually from 5 to 7 per year, but it is strictly at their own discretion. Each employer is allowed to set its own paid holiday policy, which is usually detailed in the employee handbook.
If an employee works on a paid holiday, is he or she entitled to a bonus or “holiday pay”?
No. Employers are not required by federal or New Hampshire law to pay extra for employees who work on a holiday. “Holiday pay”, in the Human Resources field, does not mean an increase in wages. It simply refers to the amount of money an employee receives for paid holiday. Holiday pay is usually paid at the employee’s regular rate of pay.
For example, John’s employer provides paid holidays, including New Year’s Day. John is off that day, and work 40 hours during the rest of the work week. His paycheck will reflect 40 hours of pay at his regular rate, and 8 hours of holiday pay at his regular rate.
Federal and New Hampshire laws mandate that employees who work more than 40 hours in a week receive overtime pay (1.5 times the usual hourly rate). John’s total hours equal 48, but since he did not work all of those hours, he does not qualify for overtime.
Susie worked 47 hours that same week. She would receive 40 hours at her regular rate, 8 hours of holiday pay at her regular rate, and 7 hours of overtime. Susie’s paycheck then would show 48 hours of pay at the regular rate and 7 hours of overtime pay. In this scenario, the holiday worked counts as part of the regular work week.
Extra pay for employees who work on holidays is often mandated with union contracts and other collective bargaining agreements.
Last 10 posts by Tamara
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- North Carolina Employee Privacy Act - April 14th, 2011
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- Georgia Overtime Update - April 11th, 2011
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