Article
3 min read
Author
Gabriele Culot
Published
January 23, 2023
Last Update
June 28, 2024
Table of Contents
Holiday pay for part-time employees in the US
Holiday pay for part-time employees around the world
Navigate holiday pay compliance with Deel
Whether part-time workers receive holiday pay differs between country and jurisdiction. Among the main factors that can influence eligibility are the following:
For example, in the UK, holiday pay for part-time workers is enforced by statutory law. However, in most US states, providing holiday pay is left to the employers’ discretion and is not a legal requirement.
Understanding how labor laws and regulations impact holiday pay is crucial for employers and employees. Employers that fail to provide legally mandated holiday pay could face compensation claims, while employees may miss out on their entitlements.
Find out how a country’s laws and regulations impact holiday pay in the US and worldwide.
Regarding US federal laws, the department of labor’s Fair Labor Standards Act (FLSA) states that time not worked does not require payment. Time not worked includes vacation days and federal holidays, such as Thanksgiving Day, Independence Day, Labor Day, Memorial Day, Christmas Day, New Year’s Day, Veteran’s Day, and Martin Luther King Jr Day.
The federal government generally views holiday pay as a “matter of agreement between employer and employee.” For example, an employer may provide part-time employees with a premium pay rate such as time and a half or double time for working on a national holiday like Labor day. As long as the employer’s policy is clear and accessible in an employee handbook and followed consistently, any approach regarding paid holiday time is legally acceptable.
There are exceptions to these rules:
State laws can differ from federal laws. For example, holiday pay is mandatory for full-time employees in Rhode Island and Massachusetts; however, these regulations do not extend to part-time work.
While there is no legal guarantee for part-time employees to receive paid holiday time off in the US, statistics show that in 2022, about 24% of part-time civilian workers with paid holiday policies took less than five days of paid holidays. Only 2% had 12 days of paid holidays.
The good news is that employee benefits for part-time workers are trending upward in the US. Vacation pay, worker’s compensation, retirement plans, disability insurance, sick leave, parental leave, and health insurance are becoming standard perks, particularly among large employers.
While the US is an anomaly, many other countries mandate holiday pay for part-time employees. Here are some examples:
Staying compliant with the local employment laws, including mandatory paid holidays, is a big concern for many employers wanting to hire internationally, but don’t let it stop you from diving into the global talent pool.
Deel ensures each contract a full-time employee or contractor signs is entirely compliant with local regulations. Finally, there is no need to learn a new set of rules each time you’re ready to hire in a new country.
Sound like the solution you’re looking for? Read all about managing compliance seamlessly, or book a demo to see Deel in action today.
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