California law does not require employers to provide paid holidays, but clear policies can outline time-off and holiday pay practices. Employers must accommodate religious observances, follow payroll timing rules, and may offer extra holiday pay voluntarily.
By Brad Nakase, Attorney
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Reviewing an employer’s responsibilities to grant holiday leave requests and holiday pay policies is a smart idea as the holiday season approaches. Five reminders for companies regarding holiday leave and compensation are covered in this blog article:
With the exception of religious adaptations, which are discussed below, California companies are not required to offer time off for holidays. The following is stated on the DLSE webpage for California:
Hourly rates on Saturdays, Sundays, and holidays have the same regulations as they do on any day of the week. Under California law, employers do not have to provide their employees with any paid holidays by law, do not have to close on any public holiday, and are not obliged to accord the employees any time off on any particular holiday.
Employers are also not required to give workers overtime compensation or “holiday pay” for tasks completed on holidays. Although these conditions would be regulated by the company’s policy, employers can freely consent to pay workers more for labor that is necessary during holidays. Employers are therefore advised to ensure that their holiday compensation practices are well-defined. For example, some may offer double time for Thanksgiving, but this does not come under paid holidays by law.
Although measures requiring certain businesses to pay workers double time for jobs completed on Thanksgiving have been offered by the California legislature, none of them have passed into law. For instance, the “Double Pay on the Holiday (2016)” sought to mandate that employers give workers at grocery stores and other places at least twice their regular rate of pay on Thanksgiving. To date, the legislature has not been able to compel California employers to provide any additional “holiday pay.”
Given that they must provide adequate accommodations for workers with religious beliefs, employers must be informed of any ceremonies held by their staff. A case-by-case study of reasonable accommodations is conducted based on the nature of the business and the kind of modification that the employee has sought.
Employees should be informed in the manual or additional regulations if the employer’s operations necessitate working on regularly observed holidays, such as at a restaurant. This will set a precedent that working on regularly observed holidays is a necessary part of employment. This does not automatically create a right to paid holidays by law.
If a company provides paid time off on a given holiday and an employee quits their job prior to the holiday, the employer is exempt from paying the worker for the day off. Employers must explicitly state in their holiday pay policy that staff members do not receive this benefit and that employees must continue working on the designated holidays in order to be eligible for it. To qualify for holiday compensation, businesses often additionally demand that workers work the days before and after the holiday.
Employers are permitted to pay salaries on the following business day if they are closed on holidays specified in the California Government Code. This rule and other factors pertaining to payroll timing regulations are outlined on the DLSE website. Section 6700 of the Government Code lists the following holidays:
Your employer may withhold paid time off or extra pay on top of your holiday hours in breach of contract, depending on what you signed when you were hired. In the event that this occurs, you have legal options.
The Division of Labor Standards Enforcement (DLSE) in California’s Labor Commissioner’s Office is where you can submit a claim. After that, the office will look into any possible legal violations by your employer.
Furthermore, you have the option to sue your employer. The goal of this case is to recover unpaid premiums or paid time off. These lawsuits may develop into class actions if the company denies holiday pay to your coworkers as well.
Employees who work on holidays are required by California law to be paid a minimum of their regular rate in accordance with business policy. Although paid holidays by law are not required, the employer is always free to pay more than the worker typically receives.
During the hectic holiday season, offering this wage raise and calling it “holiday pay” is a terrific strategy to draw in new hires and keep existing ones. However, companies are not obligated to pay “paid holidays by law” to all part-time employees or seasonal workers.
Since the compensation structure will be explained throughout the onboarding process, seasonal employees often know what they are entitled to and when. One of the best ways to encourage employees to work is to give them additional money on holidays.
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