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Calculating Overtime Pay with Vacation
and Holidays
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Q: If a nonexempt employee
works a full 40-hour workweek and also takes a day of paid vacation
or holiday, is the employee entitled to overtime pay?
A: Not unless the employee
actually works more than 40 hours in the workweek. According to the
Fair Labor Standards Act, nonexempt employees must be paid overtime
at time and one-half their regular rate of pay for all hours
actually worked over 40 in a single workweek. Thus, in
calculating how many hours a nonexempt employee actually works in a
week, the employer does not have to count the paid vacation or
holiday time towards the 40-hour workweek. For example, an employee
normally works Monday through Friday, eight hours a day, and
receives a paid holiday and does not work on the Monday. The
employee then works Tuesday through Friday, eight hours a day, and
is asked to work four additional hours on Saturday. The employee’s
pay for the week would reflect a total of 44 paid hours, however
since the employee actually worked only 36 hours, he would
not receive any overtime pay.
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This article is not intended as
legal advice. Readers are encouraged to seek appropriate legal or other
professional advice.
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