Holiday Pay for Exempts
HRQ
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Not sure if this is a Benefits or Wage & Hour question - maybe both.
Our current policy requires all employees meet a 90 day seniority requirement before they can use PTO or Holiday pay. I think I read somewhere that exempts cannot be forced to meet eligibility requirements for Holiday pay or PTO because this could result in the exempt ee not receiving their full week's salary.
I tried searching on the Forum and couldn't find my answer.
Thanks in advance for your help! x:)
Our current policy requires all employees meet a 90 day seniority requirement before they can use PTO or Holiday pay. I think I read somewhere that exempts cannot be forced to meet eligibility requirements for Holiday pay or PTO because this could result in the exempt ee not receiving their full week's salary.
I tried searching on the Forum and couldn't find my answer.
Thanks in advance for your help! x:)
Comments
By "seniority requirement", I did mean that all employees must be employed 90 days in order to be paid for a holiday.
In reviewing our policy I noticed we don't make the exception for exempts in writing, but we have been making the exception in practice, fortunately. I thought I better verify with my Forum friends before writing an addendum to the policy.
Thanks again!
(1) An employee will not be considered to be ``on a salary basis'' if deductions from his predetermined compensation are made for absences
occasioned by the employer or by the operating requirements of the business. Accordingly, if the employee is ready, willing, and able to
work, deductions may not be made for time when work is not available.
I couldn't find anything that directly says how "Holidays" are figured, but the above would seem to cover it.
In some ways you would think having a policy that established a waiting period for a benefit, such as Holiday pay, would allow employers to deny such pay to new employees, even if Exempt.
Our approach was just to waive the waiting period for such individuals.