Hours Paid for Holiday - Are They Counted When Calculating Overtime Pay?

Document created by 1050210 on Nov 13, 2014
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Published Date: 07/28/2014


George; Ports

By George Ports


With Independence Day behind us and Labor Day just around the corner, CAI always receives phone calls around holidays regarding requirements for counting holiday pay as time worked when calculating overtime. There is no federal or North Carolina wage-hour law that requires employers to count hours paid for holidays as hours worked for purposes of calculating overtime pay. Some employers, however, by policy do so, according to the 2012 CAI Policies & Benefits Survey.


No laws exist for North Carolina employers requiring them to include non-worked hours (holidays, vacation, sick, PTO, bereavement, etc.) as time worked when calculating overtime pay. They would, however, be required to do so by the North Carolina Department of Labor if they have a policy stating such. CAI recommends that if employers do not count non-worked hours as hours worked when calculating overtime that such is clearly stated in their time off policies.


For answers to other frequently asked questions about North Carolina wage-hour laws, go to http://bit.ly/wh-nc.