Holiday Pay Law: When Did It Begin?

The topic of holiday pay is complex and varies depending on the country, industry, and type of employment. In the United States, there is no federal law requiring private companies to offer holiday pay, and it is left to the discretion of employers. However, federal employees are entitled to paid holidays, and there are specific laws and regulations that govern their holiday pay. Additionally, certain states like Rhode Island and Massachusetts have special laws regarding holiday pay, with Rhode Island being the only state mandating employers to pay non-exempt employees a premium rate for working on Sundays and holidays. On the other hand, in the United Kingdom, the Holidays with Pay Act of 1938 enabled wage-regulating authorities to make provisions for holidays and holiday pay for workers.

Holiday pay in the US

However, federal employers are required to provide paid holiday time off to their employees. There are 11 federally-recognized holidays in the US, and most federal employees are entitled to these holidays off or are compensated with holiday premium pay if they work on these days.

At the state level, laws regarding holiday pay vary. In Rhode Island, employers are required to pay non-exempt employees a premium rate for working on Sundays and holidays. In Massachusetts, "Blue Laws" require some businesses to obtain special permits to operate on Sundays and certain holidays, and employees must be paid above their regular rate on these days.

While not legally required, many private companies in the US provide some form of holiday pay to their employees. Private employees in the US receive an average of 7.6 paid holidays per year, and 75% of all private employees have access to paid holidays.

Holiday pay in the UK

The Holidays with Pay Act 1938 was the first UK legislation to mandate paid holidays for workers. It was the result of a 20-25 year campaign by trade unionists, politicians, and ordinary Britons for all workers, regardless of social standing, to receive paid leave from work.

History

Prior to the industrial revolution, people in Britain enjoyed seasonal breaks from work that farming offered. After the industrial revolution, most workers only had Sundays off, as well as religious holidays like Christmas and Good Friday. In 1871, the Bank Holiday Act was passed, granting workers a few paid holidays per year, including Easter Monday, Whit Monday, the first Monday in August, and Boxing Day. However, in the 19th century and early 20th century, only senior managers and supervisors in factories were granted additional paid leave.

In 1911, the Trade Union Congress first began to campaign for paid holidays for workers. In the 1930s, trade unions raised this issue and lobbied the government for two weeks of paid holiday. In 1936, the International Labour Organisation (ILO) adopted the Holidays with Pay Convention, which called for an annual holiday with pay of at least six working days after one year of continuous service. While this was not ratified by the UK, European workers were typically granted one to two weeks of paid vacation following pressure from trade unions.

In the summer of 1938, the Holidays with Pay Act was passed, granting workers whose minimum rates of wages were fixed by trade boards the right to one week's holiday per year. This was the first law on paid leave in the UK, but it fell short of the two weeks demanded by trade unions and did not cover all workers.

Impact

The Holidays with Pay Act had a profound effect on labour law and employment standards. It introduced the concept of paid holiday, which has since become a standard requirement in employment contracts. It also started a legislative trend that led to other employment benefits and working conditions improvements. More modern legislation, such as the Working Time Regulations 1998, can trace their origins back to the principles set out in the 1938 Act.

Current Legislation

The Working Time Regulations 1998 provide the current minimum standards for annual leave, rest breaks, and maximum weekly working hours in the UK. Under these regulations, every worker has the fundamental right to a minimum of 5.6 weeks of paid leave each year, although employers can include bank holidays within this allocation. Workers must also have at least 11 consecutive hours of rest in a 24-hour period and be allowed a day off each week, or two days off in a two-week period. Additionally, working hours for a week should not exceed 48 on average, unless the employee has willingly agreed to work more.

Holiday pay for federal employees

However, there are some exceptions to these rules. For example, employees with intermittent work schedules, such as daily or hourly work, are not entitled to paid holiday time off or holiday premium pay. Part-time employees who have a holiday fall on a non-work day are also not entitled to a replacement day off. Additionally, firefighters and employees receiving annual premium pay for standby duty are not entitled to paid holiday time off or holiday premium pay.

The Fair Labor Standards Act (FLSA) does not require employers to pay employees for time not worked, including vacations or holidays. Instead, these benefits are typically agreed upon between the employer and employee. Nevertheless, federal employers are required to provide the 11 recognized federal holidays off to full-time employees or offer replacement holidays.

When it comes to holiday pay, federal employees who are required to work on a holiday are generally entitled to holiday premium pay, which is equal to their rate of basic pay for non-overtime hours worked. This means that they receive their regular rate of pay plus an additional amount of pay for the hours worked during the holiday.

It is worth noting that holiday pay and overtime pay are separate entitlements. Overtime work on a holiday must be compensated according to the standard overtime pay rates, in addition to any holiday premium pay earned.

Overall, while there are some variations and exceptions, federal employees in the US generally have the right to paid holiday time off or holiday premium pay for designated holidays.

Holiday pay for private sector employees

In the United States, there is no federal law requiring private companies to offer holiday pay. However, many private companies provide some form of holiday pay to their employees, as most employees expect it and it can help reduce employee turnover and boost morale. On average, private employees in the U.S. receive 7.6 paid holidays per year, and 75% of all private employees receive access to paid holidays.

Private sector employers are not required by federal law to give employees federal holidays off. However, many of them offer at least some federal holidays as paid time off (PTO). The most common paid holidays in the private sector are:

• Independence Day/Fourth of July
• Friday after Thanksgiving
• George Washington’s Birthday/Presidents’ Day
• Martin Luther King, Jr. Day
• Columbus Day/Indigenous Peoples Day

Some companies also offer floating holidays, which employees can take at their discretion.

While not required by federal law, holiday pay in the private sector is typically a matter of agreement between the employer and the employee or the employee's representative. If employees are represented by a union, holiday pay will be included in their collective bargaining agreement.

It's important to note that there are some state-specific laws and regulations regarding holiday pay. For example, Massachusetts and Rhode Island have laws dictating holiday pay for hourly workers. In Massachusetts, retail employees cannot work on Christmas, Columbus Day (before noon), Thanksgiving, and Veterans Day (before 1:00 p.m.) without a permit from the local police department and approval from the state’s Division of Occupational Safety. In Rhode Island, employers are required to pay non-exempt employees a premium rate of 1.5 times their normal rate for working on Sundays and holidays.

When creating holiday pay policies, private sector employers should clearly outline which holidays are designated as paid, which employees are eligible, how holiday pay is calculated, and any other relevant details in their employment contracts and employee handbooks.

Holiday pay laws by state

In the United States, federal law does not require employers to pay their employees additional compensation for working on a holiday. The Fair Labor Standards Act (FLSA) states that employers do not need to pay employees for time that isn't actually worked, including holidays and vacations. However, federal law also requires employers to pay employees time and a half for hours worked in excess of a normal 40-hour workweek, and this applies to holidays as well.

While there is no federal requirement for holiday pay, some states have specific laws that impact holiday pay. For example:

• Massachusetts "Blue Laws" require businesses to have special permits to operate on Sundays and pay their employees a premium rate on Sundays and some legal holidays.
• Rhode Island Labor Standards mandate that businesses pay time and a half to employees who work on Sundays and federal holidays (except for Martin Luther King Jr. Day and President's Day).
• In California and a few other states, there is a daily overtime standard where employees are entitled to "time and a half" for any hours worked over eight hours in a day.

Federal employees, on the other hand, are generally entitled to paid holiday time off on designated federal holidays or "in-lieu-of" holidays. They also receive holiday premium pay when required to work during designated holiday hours. However, this does not apply to employees with intermittent work schedules or those who receive annual premium pay for standby duty.

Private sector employers are not legally obligated to provide any paid holidays to their employees, and it is up to them to determine how they will handle holiday pay and scheduling. Many employers do offer holiday pay or time off for some or all of the federal holidays as a matter of policy or to incentivize employees.

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