FAQ: What You Should Know About Holidays & Labor Law Compliance

For employers, the holidays can have a dangerous side. A season that stretches from October through New Year – encompassing Veteran’s Day, Thanksgiving, Hanukkah, Kwanzaa, and Christmas – this is ordinarily a festive and celebratory season full of revelries and time spent with loved ones.

Unfortunately, for employers, the holidays can also be a compliance minefield. Wild office parties that lead to accusations of harassment, leave requests for religious observances that lead to complaints of discrimination, holiday shifts that raise questions about compensation, and more – all of these can make this an incredibly challenging time for business owners to navigate equitably, fairly, and legally.

Here’s everything you need to know to support compliance with labor law compliance during the holiday season.

Can I make my employees work on holidays?

Yes, as a private employer, you can require your employees to work on holidays. There are no federal laws mandating that private employers give employees time off on federal holidays. However it's important to review your company policies and any applicable state laws. 

Key things to keep in mind:

• Federal Law: There's no federal requirement for private employers to provide time off for holidays

• Company Policy: Clearly outline in your policy which holidays are observed and whether employees may be required to work.
• Employee Incentives: While it's allowed to require employees to work on holidays, offering holiday pay or other incentives is a common practice to boost morale and maintain satisfaction. 
• State Laws: Some states may have specific regulations around holiday work, particularly in certain industries, so it's essential to verify with local requirements.

Do I have to pay workers who work on holidays?

No, private employers are not required to pay employees extra for working the holidays. However, many companies choose to offer holiday pay as a benefit

You are required to compensate employees for time worked according to their pay agreement. Here are some additional points to consider:

• FLSA Requirements: Employers must pay employees according to their regular pay agreement and provide overtime pay for hours worked beyond 40 in a workweek. Extra holiday pay (time-and-a-hald or double pay) is not mandated by federal law. 

  • For example, if a non-exempt employee works on a holiday and their total hours for the week exceed 40 hours, overtime rules will apply under the Fair Labor Standards Act (FLSA). 

• Company Policy: While not required, many employers offer special holiday pay rates as a benefit and incentive for employees to work on holidays when they might otherwise prefer time off. 

To avoid confusion, make sure your holiday pay policy is clearly outlined in your employee handbook or other documentation. Transparency allows employees to understand how holiday work and compensation are handled in your organization. 

Can I decorate for the holidays?

Yes, you can decorate for the holidays in your workplace, but's important to consider inclusivity and avoid favoring one religion over others. Decorating can boost morale and create a festive atmosphere, but here are a few things to keep in mind: 

• Be mindful of your employee's diverse beliefs and traditions. Opting for seasonal themes, such as winter decorations, can make everyone feel included. 
• Ensure decorations comply with safety standard, such as keeping walkways clear and avoiding fire hazards. 
• Decorations in public or customer-facing areas should avoid appearing as endorsements of specific religious traditions, especially if your business interacts with a diverse customer base. 

When it comes to individual employee workspaces, it’s probably best practice to let workers decorate according to their personal preferences, so long as:

• Those spaces are not visible to the public,
• The decorations do not interfere with business, and
• The decorations do not impose an undue hardship on the employer or other employees.

Do I have to permit employees to take time off for religious observances?

Yes, employers are required to provide reasonable accommodations for employees' religious practices, unless it would create an undue hardship to the business. This means if an employee requests time off for religious reasons, you should try to accommodate the request, either by adjusting their work schedule or finding another solution. 

While you're not required to pay employees for this time off unless it's part of your paid time off (PTO) policy, it's important to be flexible and reasonable. "Undue hardship" means significantly difficulty or expense, and employers with 15 or more employees must follow these rules under the Civil Rights Act.

It's a good idea to communicate openly with employees about their religious needs and have a clear, non-discriminatory policy to help manage these requests. 

Should I have a holiday office party?

Hosting a holiday party can be a great way to build team morale and show appreciation for your employees! However you should be mindful of potential risks that come with hosting an office party.

Make sure that the party is inclusive for all employees, from the theme to what you offer for food. This way everyone feels welcome and comfortable. Avoid focusing solely on religious and cultural aspects that may not resonate with all employees. 

It's crucial to create a respectful atmosphere. This includes avoiding any behavior that could lead to harassment or discomfort. If alcohol is involved, consider limiting consumption using methods such as drink tickets to avoid issues like drunkenness or inappropriate behavior. 

If a harassment issue arises after the party, take the complain seriously and investigate it promptly to main a positive a respectful work environment. 

In the end, a holiday office party can be a wonderful opportunity for employees to connect with each other, but it's important to plan carefully to ensure it remains a positive and respectful experience for everyone. 

Should I allow a gift exchange?

It's your choice whether to allow a gift exchange or not! Allowing a gift exchange in the workplace can be a fun way to celebrate the holiday season and encourage team bonding. It's important to approach it thoughtfully to avoid discomfort or misunderstandings. Here are some tips to keep in mind: 

• Make it voluntary! Employees should never feel obligated to participate in gift exchanges. Clearly state that it is optional to avoid putting unnecessary pressure during the holidays. 
• Establish spending limits. Set a reasonable price range for gifts to ensure fairness and prevent financial strain on employees. 
• Consider alternative approaches. Some teams prefer alternatives to traditional gift exchanges, such as group charity donations, Secret Santa or White Elephant. These can be fun while also aligning with company values. 

Can I require my employees to engage in holiday or religious observances?

No, employers cannot require employees to engage in holidays or religious observances. Federal laws protect employees from religious discrimination in the workplace. This includes the right to abstain from participating in activities that conflict with their personal beliefs or religious practices.

•  Respect Employee Beliefs: If your workplace celebrates holidays, ensure employees have the option to opt out of any activities with religious or cultural significance. 
• Try to Keep Events Neutral: For workplace celebrations, consider focusing on themes that apply to all employees. 

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