Are you required to pay overtime on holidays?
In some states state, no. Whether you pay extra for work done on holidays is up to you. There is no federal law that requires an employer to pay extra for work on holidays. However, some states, such as Massachusetts, require work for certain employers on holidays to be voluntary and paid at time and a half.
As for overtime, if an employee has already worked 40 hours during that workweek, and then works on a holiday, the holiday should be paid at the applicable overtime rate.
While usually not required by law, offering additional pay for work on holidays can be a nice financial incentive and reward. A few suggestions for doing so:
• Pay time and a half or double time for all hours worked on the holiday;
• Add an extra eight hours to the checks of employees who worked; or
• Place eight hours into a “floating holiday” bank for employees who worked so they can take time off at a later date.
If you decide to provide additional pay for holidays, be sure to do so in a non-discriminatory and consistent manner for all employees.