Heard It On the Hotline: Can I Dock an Exempt Employee’s Pay for Holidays?

November 30, 2020
Publication
MRA Edge
Wage & Hour
Read time: 1 min
Q: Our company is closed on Thanksgiving Day, Christmas Eve, Christmas Day, and New Year’s Day. Our holiday benefit policy indicates that new employees are eligible for holiday pay after 90 days of employment. Can I can dock the pay of our exempt marketing manager for these four holidays since she has not been employed 90 days?

A: This eligibility requirement for holiday pay is acceptable for nonexempt employees. However, exempt employees must be paid their full salary any workweek in which they perform work, with a few exceptions. Deductions for company closure on a holiday are not permitted for exempt employees, nor are policies that require an exempt employee to be at work the day before/after a holiday in order to receive the holiday pay benefit. Therefore, exempt employees are required to receive their full salary during a week when the company closes for a holiday, unless the company closes for the entire workweek and the exempt employee performs no work.

Source: MRA - The Management Association

MRA Edge Nov/Dec 2020 cover

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