If a holiday like New Year’s Eve falls on a weekend when you’re closed, and you typically give employees that holiday off, do you have to offer employees an alternative day off?
No, the way you designate holiday closures is largely up to you. No federal law requires you to offer holidays off or offer alternative days off if you’re closed on a holiday (Massachusetts and Rhode Island both have laws that address holidays, however). That said, if you don’t offer an alternative day off when a holiday falls on a day you’re closed, your employees will have fewer days off during the year. That may matter to your current employees and prospective job candidates.
Whatever you decide, we recommend clearly communicating your holiday pay practices and schedule to employees ahead of time. Keep in mind too that pay requirements for exempt and nonexempt employees may differ. You can learn more about these requirements on the platform.