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


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.

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.


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Shirley McAllister, CPP, PHR


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.


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


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