Payroll
What is holiday pay?
Holiday pay is pay for a holiday, either as paid time off or a premium for working it. Federal law requires neither for private employers.
Time and a half on Thanksgiving is a policy choice, not a legal duty. Once you put it in a handbook, it becomes an expectation you should apply consistently.
Unworked holiday hours generally don't count toward the 40 that triggers overtime, unless your policy says they do. Spell that out, because employees usually assume the opposite.
Handle this automatically
Kloqk is a free employee time clock for small business. It records the punches, applies your rules, and does this arithmetic for you.
Related terms
Overtime
Overtime is the extra pay a non-exempt employee earns for hours past 40 in a workweek, at no less than 1.5 times their regular rate under federal law.
Shift differential
A shift differential is extra pay for working a less desirable shift, such as nights or weekends, usually a flat amount per hour or a percentage of base pay.
PTO accrual
PTO accrual is earning paid time off gradually, usually a set number of hours per hour worked or per pay period, instead of receiving a lump balance up front.
General information for US employers, not legal advice. Wage and hour rules change and vary by state, so confirm specifics with your state labor agency or counsel.