How do I pay an employee who has to work on a holiday that everyone else had off as paid? Do I pay overtime for that day?
Employers should set forth in their holiday policy an explanation of what will happen if an employee is required to work on a day the employer has designated as a paid holiday. Since the policy of giving a paid day off may be construed by the courts as a contract to do so, the employer must make up the lost benefit to the employee in some manner. The normal procedure is to grant another day off within a designated time period (best practice is 60 days) or pay that workday at 1.5 times the employees regular rate of pay. There are no special overtime requirements that apply to private employers unless your personnel policies contain such provisions.