holiday pay for new exempt employee

pattycake · March 2005

A new exempt employee was hired on Dec. 22, 2004 and it is our policy to have a 90 day probationary period for all employees. Our policy states that probationary employees do not receive any benefits (including paid holidays) until the first of the month following their 90 day probationary period. Would we be obligated to pay this employee for the Christmas, New Year's holidays that occur before the end of his probationary period because he is salaried exempt or can pay be deducted for those holidays?

HRinFL · March 2005

[font size="1" color="#FF0000"]LAST EDITED ON 03-23-05 AT 03:27PM (CST)[/font][br][br]I don't understand your question. Are you saying that he was paid last year for the Christmas holiday and this year for the New Year's holiday?

If you are, I would not believe that you can deduct pay from his check. I know for our company, "exempt" ees do not really get "paid holidays." This is because they receive a salary, regardless of the hours they work. Depending on if they are weekly or monthly salaried ees, they are eligible to receive their entire compensation if they work any time during that week (for monthly, they have to work some hours for each week, or the amount of pay equal to any week where they did not record any work hours is deducted, excluding vacations). While the ees do not work the holiday, they are paid their salary for the week. If they do work the holiday, they do not receive extra pay.

Similarly, we do not deduct hours from exempt ees sick pay bank for missing anything less than one week. Again, if they record hours during the week, they are entitled to their total salary for that week. JMHO!

pattycake · March 2005

To clarify my question, we did pay the individual for the holidays, however, there was some disagreement between supervisors as to whether he was entitled to be paid, since he was still in his probationary period as a new employee and our policy states that new employees do not receive pay for holidays until they have completed their probationary period. His 90 day probation period did not end until March 22, 2005.

E Wart · March 2005

We used to have this policy as well. However, I "got rid of it" for several reasons. New employees are not eligible for vacaiton, personal time and floating holidays until the first day of the month after 90 days of employment. (This is time they are given as a benefit and they control the time they are out). However, if it is a holiday that we, as a company, celebrate and the office is closed, we pay them, whether they are exempt or non exempt, whether they have been employed one day or 1,000 days. It isn't the employee's fault that we are closed. You may want to be careful deducting for this day from an exempt employee, even if it is a written policy. You may also want to check your state law, too.
E Wart

Don D · March 2005

Interesting responses. I especially like FL's notion that exempts do not get paid holidays, they just get a day off while their pay continues. I never had thought of it that way, but it's true.

I also like E. Wart's comment about abolishing the earlier policy. I did that myself because it was not consistent with the FLSA. The policy here was that any employee had to be on the payroll for a month in order to be paid for a holiday. I found my pay docked and, upon inquiry, was told that I hadn't worked here a month. The policy was not legal and, in effect, attempted to OVERRIDE the Fair Labor Standards Act. So I changed it. In order for it to not appear that I only did that to benefit myself, I had payroll go back three years and pay any employee who had been similarly affected. There were nine exempts who got a day's pay.

The policy in the original post, in my opinion, is not legal.

njjel · March 2005

Salaried is salaried, pay them for the holidays. the exception might be however if on their first week of employment Monday was a holiday the regs state you do not have to pay them for a full week. Same with their last week of employment. You may pay them only what they work if you desire. Nothing, however prevents you from paying them for 5 days in either case.

HRinFL · March 2005

>Interesting responses. I especially like FL's
>notion that exempts do not get paid holidays,
>they just get a day off while their pay
>continues. I never had thought of it that way,
>but it's true.

He likes me, he really likes me! x:D

pork1 · April 2005

HR IN FL: You are to much, does it matter?

PORK

Don D · April 2005

PoRk: Go back to the pen. You didn't understand the humor. It's your short suit.

HRinFL · April 2005

[font size="1" color="#FF0000"]LAST EDITED ON 04-05-05 AT 05:01PM (CST)[/font][br][br]All I am going to say is that you never want to burn a bridge. Who knows, some day, I might be looking for a job is MS and find myself across the desk from a Southern Gentleman. Plus, he is the Godfather of the Forum, you don't want to stir up too much trouble.

Plus as a "newbie" I need to make as many friends as I can. BTW, have I ever told you about my deep affection for pork and pork byproducts? x:D

Don D · April 2005

No, but please do. So far I'm fairly impressed with the line of BS. Carry on. x:-)

holiday pay for new exempt employee

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