Handling Holiday Time Off

No matter your industry, the holidays mean facing a few scenarios with your employees unique to this time of year. For instance, employees may need additional time off to travel, or you may need to bring on seasonal or temporary workers to handle the busy holiday season. Below is a quick run-down of some areas to consider for your business’ holiday schedule.

Do I have to give my employees time off for any holiday?

Generally, private employers are not required to provide time off, even for federal holidays such as Christmas and New Year’s Day. So, while not a requirement, most employers are not Mr. Grinch and voluntarily provide their employees with time off.

Federal law does require employers to “reasonably accommodate” the religious practices of their employees. Therefore, if you provide time off for religious holidays, such as Christmas, you should also provide similar leave opportunities for workers of other faiths to observe religious holidays like Diwali, Yom Kippur, and Eid to avoid religious discrimination claims

Any special rules on pay for the holiday?

If you require employees to work on holidays, you are not obligated to pay a higher wage than on other days. However, the normal rules on overtime still apply. Again, small business employers are not taking a page out of Scrooge’s handbook and will sometimes voluntarily provide a higher wage to incentivize employees to work on a holiday or the day after a holiday. And as a bonus, this could go a long way towards boosting the morale and loyalty of your employees.

What are the minimum wages in my state?

For employers in the DC Maryland region, wages will vary based on the state of employment. Where is the principal place of business? The laws of that state will determine wage rates. However, remember some remote employees are considered employees of the state from which they work remotely. Be sure to verify the state of employment for all employees. 

The minimum wage in the District of Columbia is currently $16.10. The minimum wage in the State of Virginia is $11.00 for employers with four or more employees and will be $12.00 beginning January 1, 2023. The minimum wage in the State of Maryland is currently $12.50, while employees under the age of 18 may be paid 85% of the State minimum hourly wage rate, as low as $10.63/hour, for fewer than 20 hours per week of work. The minimum wage in Prince George’s County, Maryland is currently $11.75 for all employees. The Montgomery County, Maryland minimum wage ranges from $14.00 to $15.00, depending on the number of employees. 

What if I need to hire seasonal workers?

Temporary or seasonal workers are a great way to deal with high volume without hiring new employees. Temporary or seasonal workers are entitled to the same minimum wage as your employees but not to health insurance or other benefits provided to your permanent employees. Temporary workers are entitled to overtime pay. However, there are five federal law Fair Labor Standards Act categories that are exempt from receiving overtime - Administrative employees, Computer employees, Executives, Outside sales personnel (not subject to weekly minimum pay), and Professional employees all earning at least $684.00 gross per week or $27.63 hourly. In addition, certain categories of temporary employees for businesses like amusement parks, swimming pools, and seasonal attractions may not be entitled to overtime. 

The laws regulating minimum wage and overtime pay vary by state and job description, so be sure to know the exempt status and minimum wage requirement for each small business employee. 

Keep these points in mind as you’re navigating your holiday schedule. And however you choose to handle seasonal time off, make your environment welcoming and festive for the employees clocking in!

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