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Indiana Holiday Pay Law

Posted by Tamara

Holiday pay and who is entitled to which paid holidays can be confusing for Indiana employees and employees. An employee asks, “Which Indiana or federal law or laws require employers to provide paid holidays and extra pay for employees who work on these holidays?”

The answer is none. There are no federal or Indiana laws that require employers to provide paid holidays or to pay extra wages for employees who work holidays. Federal and Indiana laws simply require that employees receive pay for each hour they work.

Employees are often surprised by this information. “What about federal holidays?” an Indiana worker insists. “Aren’t those mandated by law?”

No they aren’t. Federal holidays are simply days when federal agencies and the post office are closed. There is no law that requires every employer to be closed on these days, or on any days.

In the United States, employers are allowed to conduct business 365 years a day. As a result, employers may require their employees to report to work on any day of the year. If an employer chooses to close on holidays, it is completely up to the individual company’s discretion to choose how many and which holidays. It is also up to the employer’s discretion whether to pay employees for that day off. No Indiana or federal law mandates receiving pay for having holidays off from work.

Employees often assume that if they work on holidays, such as Christmas or Thanksgiving, that they are allowed extra or “holiday pay”. This is an incorrect assumption. Companies often do pay a premium wage as an incentive for employees to work on a federal holiday, but they aren’t required to by law.

Many Indiana employers, like retail stores, choose to remain open on holidays. Many employers, however, must remain open on holidays and every other day of the year, too. Police departments, fire departments and hospitals have to be open to maintain public safety and health. Employees in these industries are required to work any day of the year, holidays included.


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