We hear a lot of questions as payroll processing experts here in Dallas, TX. Here’s one about how to adjust payroll for employees who work on a holiday
Question: What should we pay employees who work on a holiday?
Answer: While there is no federal legal requirement to pay employees anything above and beyond their actual hours worked, there are a few states, such as Massachusetts, that do require additional pay in specific circumstances (check out our handy mapping tool for laws and documents state-by-state). Even if you are not in one of those states, it can be nice to financially reward employees for working on a holiday.
A few suggestions for doing so are:
- pay time and a half for all hours worked on the holiday,
- add an extra 8 hours to the checks of employees who worked, or
- place 8 hours into a “floating holiday” bank for employees who worked so they can take time off at a later date.