Accounting, Payroll & Pension Issues/Holiday pay and overtime pay

Advertisement


Question
Our company voluntarily pays a premium of time and one-half for designated holidays. For nonexempt employees who have met their 40 hours of work and then works on a holiday in the same week, how should they be paid? I've researched and found information that states the FLSA regulations generally allow employers to credit this extra compensation towards any overtime that might actually be earned in the same week.

Thank you for your help.

Answer
You are correct, if the holiday puts the non exempt in an overtime state, than you do not have to pay twice for the overtime. If you are already paying time and a half you are already paying the overtime rate.

As long as you are paying time and a half on the holiday that is all you have to pay no matter how many hours are worked in the regular week.

Shirley

Accounting, Payroll & Pension Issues

All Answers


Answers by Expert:


Ask Experts

Volunteer


Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

©2016 About.com. All rights reserved.