Are Hours Paid For Holidays Counted When Calculating Overtime?

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george pic for news.jpgCAI  receives many phone calls and e-mails around holidays regarding requirements for counting holiday pay as hours worked when calculating overtime.  There is no federal or North Carolina wage hour law that requires employers to count hours paid for holidays or other non-worked hours as hours worked for purposes of calculating overtime pay.

 

However, a small percentage of employers do count non-work hours, such as holiday pay for an example, when calculating overtime.  The 2014 CAI Policies & Benefits Survey (page 47, question #143) reports that 21.9% of employers surveyed do count holiday hours towards overtime: 

 

 

Holidays:         21.9%

Vacation:         14.1%

Sick:                 6.2%

Jury Duty:        7.8%

Bereavement:  8.4% 

 

As stated, 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.  CAI recommends that if employers do not count non-worked hours as hours worked when calculating overtime pay that this be clearly explained in their paid time off policies.  Employers would, however, be required by the North Carolina Department of Labor (NCDOL) to include non-work hours in their overtime calculations if the employer has a policy stating that they do.

 

For answers to other frequently asked questions about North Carolina and federal wage hour laws go to:  http://www.nclabor.com/wh/faqs.pdf, http://www.dol.gov/whd/, or call CAI’s Advice and Resolution Team at 919-878-9222 or 336-668-7746.

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