First, it is important to note that each state sets its own rules and standards regarding wages and work conditions. However, the federal minimum wage is set by the Fair Labor Standards Act (“FLSA”), and is currently $7.25 per hour. Because each state sets their own minimum wage laws, an employee is generally entitled to receive whichever wage would be the highest between the federal and state rate.
In addition to federal and state laws, some cities and counties have “living wage” laws that set a higher minimum wage than both the state and the federal government. These living wage laws most commonly apply to the companies that are doing business in the specific local area or government. In these cases, the employer must pay the highest minimum wage whether it is federal, state, or local.
Although minimum wage laws determine the lowest hourly rate at which an employer can legally pay an employee, employers are not required to pay employees by the hour. As long as the total amount paid divided by the total number of hours worked is equal to or greater than the minimum wage, the pay structure will be considered to be legal.
Does the FLSA Cover all Employees?
It is important to note that not all employers are required to follow minimum wage laws and pay an individual the minimum wage. There are two categories that an employer must fall into in order for the employer to be required to pay its employees minimum wage. These requirements are:
- The business must receive $500,000 or more in annual sales; and,
- The employees of the business must work or engage in “interstate commerce”
- Interstate commerce generally means doing business between the states.
The following lists contains employees that are generally exempt from receiving federal minimum wage:
- Employees that are Independent contractors;
- Employees that are an outside salesperson(s);
- Workers on small farms;
- Switchboard operators who are employed by phone companies with no more than 750 stations;
- Workers of seasonal amusement or recreational businesses, such as a carnival or faire;
- Employees of local newspapers that have a circulation of less than 4,000 prints;
- Newspaper deliverers; and
- Students and learners as they are defined by law.
Once again, there are also state laws that cover wages and pay requirements. As such, employees may still be covered under their state or local municipality laws, if they are not covered by the federal law. Additionally, employees who earn tips in addition to their actual wages can also be paid a different hourly rate. This hourly rate for tipped employees may be less than the federal minimum wage. However, these tips must still be enough to meet minimum wage requirements.
The United States Department of Labor (“DOL”) has recently issued new policies regarding overtime pay and wage laws which became effective as of January 1, 2020. These wage laws increased the minimum salary requirement for FLSA overtime exemptions, as well as increased an individual’s annual compensation requirement.
Employers are also now allowed to use the nondiscretionary bonuses or incentive payments in order to satisfy the required salary standard for exempt executive, administrative, and professional employees. The laws also altered the special salary levels for workers in US territories, and motion picture industries. However, the federal laws still did not address any federal requirements regarding holiday pay.
What Is Holiday Pay?
Holiday pay is a pay that is additional to a prevailing wage that is awarded to many employees whose schedules are interrupted due to a list of specified holidays. As such, if an employee is scheduled to work a certain day, but is not given their normal wage hours as the result of a holiday, the employer may pay their employee a full day’s wages as holiday pay.
As noted above, the Fair Labor Standards Act does not require that an employer pay their employees for time that the employee does not work. However, many employers still offer holiday pay as an employment benefit. As such, the most important rules regarding whether or not an employer will have to pay their employee holiday pay will be found in the employment contract executed between the employee and employer.
Although there are no federal laws regarding holiday pay, there are some states, such as Virginia, that explicitly state that employers do not have to pay their employees for holidays that an employee takes off. In fact, most states believe that holiday pay is reserved for an agreement between the employer and employee, rather than being a legal right for an employee.
What Are the Laws Regarding Holiday Pay for Public Employees?
In a sharp contrast to private sector employees, federal/public employees (i.e. employees that work for the federal or state government) have a different set of rules regarding holiday pay. In fact, federal employees are able to receive legally designated holiday pay.
These employees are considered to be exempt employees. As such, they still receive a salary and cannot have their pay reduced when they do not work because of a federal or state holiday. Employment law also mandates that their salary distributions remain consistent even during pay periods that contain days off as a result of the holidays.
The following is a list of holidays in which a federal or state employee must be paid holiday pay:
- Martin Luther King, Jr. Day;
- Washington’s Birthday;
- Memorial Day;
- Juneteenth Independence Day;
- Independence Day;
- Labor Day;
- Columbus or Indigenous People Day;
- Veterans Day;
- Thanksgiving Day;
- Christmas Day; and
- Inauguration day for federal employees who are scheduled to work on inauguration day that work in:
- Washington, D.C.;
- Montgomery County, MD;
- Prince George’s County, MD;
- Arlington County, VA;
- Fairfax County, VA;
- Arlington City, VA; or
- Fairfax City, VA.
It is important to note that under the Federal United States Code regarding holiday pay for public employees, when a holiday falls on Saturday or Sunday, the holiday will be observed on the previous Friday or following Monday, respectively.
What Is the Holiday Premium Pay for Federal or Public Employees?
If a public employee is regularly scheduled to work on a designated federal holiday, then they will receive paid time off for that holiday. A public employee that performs work on a holiday designated by a federal statute is entitled to premium pay for that holiday.
Typically such employees are deemed essential and cannot take off the day for the holiday. Essential employees will receive pay at their basic pay plus premium pay at a rate equal to the rate of their basic pay. Further, an employee who performs overtime work on a Sunday or a designated holiday is also entitled to pay for their overtime work.
It is important to note that premium pay for holiday work is in addition to any overtime pay. This means that the hours of holiday work are included in determining the total number of hours worked for overtime pay purposes in the work week in which the holiday occurs.
What Are the Laws Regarding Religious Holidays?
Once again, the FLSA does not require an employer to pay an employee for days in which they do not work. However, it is also illegal for an employer to discriminate based on an employee’s religious beliefs. Religious holidays are not automatically granted as time off to employees, but rather are an agreement employers enter into with their employees.
Many employers offer their employee’s personal days, floating holidays, or vacation time that may be used by an employee who needs to be out of the office for religious holidays. It is important to note that if an employer believes that the company will lose profits or efficiency, they may deny an employee’s request for time off due to a religious holiday.
Do I Need a Lawyer for Help With Holiday Pay?
If you believe that you are entitled to holiday pay and you have not received the pay designated by federal law or an employment agreement, you should consult with an experienced employment lawyer. An experienced employment law attorney can advise of your best legal options regarding obtaining the withheld holiday pay.
