Is Holiday Pay Required in Texas? What Employers Need to Know
December 4, 2024
Article Summary
- Texas law does not require employers to pay holiday pay.
- Salaried employees must generally be paid their salary if the business is closed for a holiday.
- Overtime pay for holiday work is not mandatory unless required under federal law.
Is Holiday Pay Legally Required in Texas?
In Texas, employers are not legally required to provide holiday pay, including time-and-a-half for employees working on holidays with the exception of salaried employees (more below). The Fair Labor Standards Act (FLSA) governs wage laws in Texas but does not mandate holiday pay for private employers (U.S. Department of Labor). Whether or not an employee receives holiday pay depends on company policy. Employers may choose to offer it as an incentive or part of their benefits package.
Paying Salaried Employees When Closed for a Holiday
For salaried exempt employees, holiday closures can present a unique challenge. According to the FLSA, exempt employees must receive their full salary for any workweek in which they perform work, regardless of whether the business is closed for a holiday. This means:
- If your business is closed for a day and the employee worked any part of the week, you must still pay their full salary.
- Deductions for holiday closures could jeopardize their exempt status under FLSA rules.
Non-exempt salaried employees, however, are only required to be paid for hours worked. If they do not work during a holiday or closure, employers are not obligated to pay them unless company policy dictates otherwise.
Paying Hourly Employees for Holidays
Hourly employees are treated differently. Employers are only required to pay hourly workers for the time they actually work. If the business is closed for a holiday and the employee does not work, there is no legal obligation to pay them.
For employees working on a holiday, time-and-a-half pay is not required unless:
- The employee exceeds 40 hours in the workweek, at which point overtime pay kicks in.
- A company policy or employment contract specifies holiday pay.
Do You Have to Pay Time-and-a-Half for Holiday Work in Texas?
There is no state or federal law requiring private employers to pay employees extra for working on a holiday unless it results in overtime. However, many businesses choose to offer time-and-a-half pay for holiday shifts as a way to attract and retain employees or maintain morale.
Employers should clearly outline holiday pay policies in their employee handbook to avoid confusion or disputes.
Why Clear Holiday Pay Policies Matter
To ensure compliance and maintain employee satisfaction, businesses should:
- Define Holiday Pay Policies: Clearly state whether holiday pay is offered and under what circumstances.
- Communicate Expectations: Notify employees well in advance about holiday schedules and pay practices.
- Comply with FLSA Guidelines: For exempt employees, ensure they receive their full salary when applicable.
How The HR Experts at The Unit Consulting Can Help
Navigating payroll laws and holiday pay requirements in Texas can be challenging. At The Unit Consulting, we provide tailored HR solutions to ensure your business remains compliant while supporting your workforce. From creating clear holiday pay policies to managing payroll and compliance, we’re here to help your business thrive.
Contact the Texas HR consultants at The Unit Consulting today to simplify your HR processes and ensure your employees are set up for success, no matter the season.
