As the holiday season approaches, it’s a great time for employers to revisit their responsibilities when it comes to accommodating holiday leave requests and ensuring proper pay practices. Last week, we discussed important vacation considerations for employers during the holiday season. This week, we are sharing five key reminders about holiday-related policies for California employers:
1. Time Off for Holidays Is Not Mandated in California
California employers are not required to grant employees time off for holidays, except when it involves religious accommodations (discussed below). The California Division of Labor Standards Enforcement (DLSE) clarifies:
“Hours worked on holidays, Saturdays, and Sundays are treated like hours worked on any other day of the week. California law does not require employers to provide paid holidays, close their business on holidays, or give employees time off for specific holidays.”
2. No Obligation for Paid Holidays or Extra Pay for Holiday Work
California employers are not obligated to pay employees for holidays they do not work or to provide additional wages for working on a holiday. While employers can voluntarily implement a “holiday pay” policy, it’s important to clearly outline such terms in the company’s handbook or policies.
Although California lawmakers have proposed bills like the “Double Pay on the Holiday Act of 2016,” which sought to require double pay for certain holiday work (e.g., Thanksgiving), no such legislation has been enacted. Employers should remain informed about potential legislative changes.
3. Religious Accommodations for Holiday Observances Are Required
Employers must provide reasonable accommodations for employees unable to work on specific holidays due to religious observances. Accommodations are evaluated on a case-by-case basis, taking into account the nature of the business and the employee’s request.
For businesses that require employees to work during recognized holidays, such as restaurants, it’s important to communicate these expectations in the employee handbook or other policies.
4. Holiday Pay Benefits Do Not Accrue
If an employer offers paid holidays, they are not required to allow employees to accrue this benefit. For example, if an employee leaves the company before a holiday occurs, the employer does not have to pay for the unused holiday. To avoid misunderstandings, policies should clearly state that holiday pay is contingent on being employed during the holiday. Employers often add conditions, such as requiring employees to work the days immediately before and after a holiday to qualify for holiday pay.
5. Payroll Processing Can Be Delayed for Certain Holidays
If a holiday falls on a scheduled payday and the employer’s office is closed, wages may be processed on the next business day. The DLSE outlines these requirements, and employers should familiarize themselves with the holidays listed in the California Government Code Section 6700, including:
- New Year’s Day (January 1)
- Martin Luther King Jr. Day (Third Monday in January)
- Memorial Day (Last Monday in May)
- Independence Day (July 4)
- Veterans Day (November 11)
- Christmas Day (December 25)
Other holidays, such as Admission Day (September 9) and Native American Day (Fourth Friday in September), are also recognized. Employers should ensure their payroll policies align with these requirements.
Wishing you a happy and successful holiday season! By staying proactive and informed, employers can ensure smooth operations and maintain compliance during this festive time of year.