Contractor License Practice Exam

Do employers have to pay overtime pay to employees who work on a holiday?

1. Yes

2. No

3. Only if they request it

4. Depends on the state law

The correct answer is: No

Employers are typically not required to pay overtime for employees who work on a holiday unless there are specific agreements in place, such as a union contract or individual employment agreements that stipulate holiday pay policies. The Fair Labor Standards Act does not mandate that employers provide holiday pay, nor does it classify holiday hours as overtime hours. Overtime pay is generally calculated based on the total hours worked in a workweek that exceed 40 hours. While some employers may voluntarily choose to offer higher pay rates for working on holidays to incentivize employees, this is not a legal requirement. Consequently, stating that employers do not have to pay overtime pay to employees for holiday work aligns with common labor principles and regulations. Other options may imply circumstances that are not universally applicable. For instance, suggesting that overtime pay only applies if requested could lead to misunderstandings about the employer's responsibilities, as policies should clearly define such terms. Similarly, claiming that it depends on state law mixes in complexities that may vary widely; while state laws can influence holiday pay policies, they do not change the foundational principle regarding the general requirement for overtime pay.