Sometimes employees take time off from work, this might be due to various legitimate reasons, but they still have to get paid. As an employer, you need to come up with a sound measure of dealing with holidays at your business. Whether you are an employer or manager, here are some needs to know policies before drafting a holiday pay plan.
Exempt employees are paid on a salaried or fee basis. The law requires that these employees are paid their regular salaries without interruption for business closure that extends less than one full week. Exempt employees should also not experience any disruption in their wages for holiday closure
For non-exempt employees, an employer is generally not required to pay the employees on days which they do not work. Provided the employer alerts the non-exempt workers before reporting to work on holiday then no payment is needed. If in a case the employee has accrued vacation time, the employer can require, or employee may request to utilize the vacation time
Sometimes the employer can pay non-exempt employees for work done during the holidays. Sometimes most non-exempt employees may not turn up for work during holidays. Firm heads and managers may offer these workers double salary as an incentive for them to work on the holidays
Measures to deal with holidays
After understanding holiday pay policies it is crucial to come up with ways which will help keep your business afloat, they include the following:
- Get software that will help you to track your PTO or off time requests
You need to accurately keep track of vacation time, holidays, and paid time off? Lack of proper record might lead you to have trouble with the Department of labor or state agencies. Some of this software is free and can aid you to keep track of employees’ attendance as well as shift swapping and scheduling.
- Plan and announce holiday schedules early
You should communicate with your employees and ask for their programs so you can plan for their holidays at a soundstage. Sometimes the employees do not know about their vacation schedule and might take a random day off.
- Consider hiring temporary employees
If your business is that which stays open during the holidays like a restaurant, retail store or medical office it will be a good idea to hire temps. Temporary workers will cover open shifts which were done by your usual workers for the period they are not coming to work. This will help your business stay operational, and no clients will be lost.
- Compare cost/benefit of staying closed for a day versus staying open
You should evaluate your options on closing your operations for the day or staying open. If your business is the type that needs to be open during holidays, compare the cost and benefits of hiring temps or not offering holidays for your workers. Sometimes temporary workers can be expensive whereas not offering holidays to employees may lead to them seeking new jobs elsewhere where days off on holidays are provided
Holidays are usually few and far apart all year long, and they always get people excited. Keep calm and try to understand people’s situations and you will take proper charge of everything. Considering all above you can finally draft a perfect holiday pay plan
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