Legal Question in Employment Law in California
holiday pay for exempt employee
In our
employee's manual, we have a section talking about paid holiday. We
said that employees will get pay for a holiday pay if they have been
with our company for at least 90 days. If not they will not get paid. This apply for both exempt and non-exempt.
I have a new employee that is on salary that is exempt. That person has been
here probably less than a month. She said that by law I should pay
her for the holiday even though she is still in her probationary period.
My neighbor has the same policy as us. They give exempt employee benefit after 90 days. What is the correct thing to do here. I need to be consistent w/ all of my exempt employees. For the past 8 years or so, nobody has complain about this since we have it our employee manual and they all understood when they accepted the position. We have them sign the paperwork before they start. Your help is much appreciated.
2 Answers from Attorneys
Re: holiday pay for exempt employee
Exempt employees must be paid on a salary basis. There is a limited basis for deductoins from an exempt employee's salary. A lack of work due to the company's operational needs (shutdown on a holiday) does not change the employers responsibility to pay the full salary. Dedutions for a holiday can change the employee's status to non-exempt. I suggest that you review your policies with an employment lawyer.
Re: holiday pay for exempt employee
This may come as a surprise to you and your new employee, but there is no law that says employers have to pay employees for holidays. This is purely a fringe benefit many employers offer to their workers. Therefore, the employer has the right to set the critieria necessary for the employee to earn the benefit. Setting a probationary condition is perfectly fine.
Just make sure the benefit is applied evenly and the rule is followed. No favoritism. No deviation from policy. That is where allegations of discrimination or retaliation may be made.
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