Holiday Preparations – HR Style

Heard it on the Hotline

What employers should know about holiday shutdowns, pay, and FMLA

The holiday season is just around the corner—and with it comes an influx of questions to the MRA HR Hotline. From holiday shutdowns and pay practices to FMLA and holiday pay, employers often have questions about how to handle these situations appropriately and consistently.

Below are some of the questions we hear most frequently this time of year, along with guidance from the MRA HR Hotline.

We are considering closing our facility for a full week over the holidays. How should employees be paid during the shutdown week?

Pay during a temporary shutdown may vary depending on an employee’s classification.

Hourly, non-exempt employees: Employees generally only need to be paid for the hours they actually work, along with any holiday pay the organization provides. Employees may also be permitted to use available vacation or paid time off (PTO) to receive pay during the shutdown week, consistent with the organization’s policies.

Salaried, exempt employees: The rules can be more nuanced. If an exempt employee performs no work at all during the workweek because the facility is closed, the employer generally is not required to pay the employee for that week. However, if the employee performs any work during the workweek, the employee generally must receive their full salary for the week—even if they do not have enough available vacation or PTO to cover the entire shutdown period.

As with hourly, non-exempt employees, salaried, exempt employees may use available vacation or PTO during the shutdown week, consistent with the organization’s applicable policies.

How should FMLA be designated for employees who are on FMLA leave during a holiday shutdown?

Under the federal FMLA, if an employer’s operations are completely shut down for one or more full workweeks, the days during the shutdown generally cannot be counted against an employee’s FMLA leave entitlement.

For example, if an employee is on continuous FMLA leave during a week-long holiday shutdown, that week generally would not be deducted from the employee’s 12-week FMLA entitlement. The shutdown period is treated differently from a regular workweek in which the employee would otherwise be scheduled to work.

The employee’s FMLA entitlement would resume when the employer’s operations resume.

Our organization offers holiday pay after an employee has completed 90 days of employment. How should employees who have not yet been employed for 90 days be paid for a holiday?

Whether an employee must be compensated for a holiday before becoming eligible for holiday pay under the organization’s policy depends on the employee’s classification and the circumstances.

Hourly, non-exempt employees: If an employee is not yet eligible for holiday pay and does not work on the holiday, the organization generally would not be required to compensate the employee for that day. If the employee works on the holiday, they must be paid for the hours worked in accordance with applicable wage and hour requirements and the organization’s policies.

Salaried, exempt employees: If an exempt employee performs any work during the workweek in which the holiday falls, the employee generally must receive their full weekly salary, even if they have not yet met the organization’s 90-day eligibility requirement for its holiday pay benefit.

Do employees receive holiday pay if they use FMLA around the holidays?

There are several factors employers should consider when determining whether an employee who uses FMLA leave around a holiday is eligible for holiday pay, including:

• Whether the employee is taking continuous or intermittent FMLA leave;
• The organization’s holiday pay policy, including any requirements regarding hours worked before or after the holiday;
• How the organization’s policy addresses other types of leave taken around holidays; and
• Whether the employee meets any other eligibility requirements outlined in the organization’s holiday pay policy.

Employers should apply their holiday pay policy consistently and ensure employees using FMLA leave are not treated less favorably than employees taking other forms of comparable leave, consistent with FMLA requirements.

Can an employer address an employee who frequently uses FMLA leave around the holidays, thereby extending their time off?

If an employee has a pattern of using FMLA leave around holidays that raises legitimate questions about the employee’s need for leave, an employer may take appropriate steps to better understand the circumstances.

This may include discussing the pattern of absences with the employee and, when permitted under the FMLA, seeking clarification or additional information from the employee’s health care provider to determine whether the pattern of absences is consistent with the employee’s certified need for leave.

An employer may also consider whether the circumstances warrant FMLA recertification consistent with applicable FMLA requirements.

Employers should administer these processes consistently and be careful not to treat an employee’s use of FMLA leave differently simply because the leave occurs around a holiday.

Have a holiday HR question?

The holidays may mean time away from work, but HR questions don’t take a holiday!

If you have additional questions or would like to talk through one of these scenarios, reach out to the MRA HR Hotline—available 24/7, even on holidays.

We’re always here to help you navigate your HR questions, big or small, throughout the holiday season and beyond.