How to Pay Workers on July 4th

Prepare for Independence Day! You’ll discover whether or not holiday pay or overtime pay is necessary for the Fourth of July.

What you’ll discover:

How does holiday compensation for Independence Day work?
Overtime on the Fourth of July is paid at time and a half or double time.
What happens when the Fourth of July occurs on a weekend?
Is it necessary for workers to get paid if a company closes for the Fourth of July?
How is the Fourth of July holiday pay calculated?

Although we can all agree that the Fourth of July is a happy time of year, it can also be perplexing for small business owners. After all, the Fourth of July is a federal holiday, and employers and workers alike often question if they are entitled to holiday pay, time and a half, or even double time pay.

Learn how to pay workers on July 4th in the section below.

How does holiday compensation for Independence Day work?

It is true for every celebration, even Independence Day. Federal, state, and municipal government workers are frequently given time off or paid overtime on July 4th. As a result, how holiday pay works will be determined by state labor laws and an employer’s regulations.

Most employers are only required to give holiday pay or time off if they have a policy or practice of paying overtime or giving paid time off on holidays.

When it comes to state regulations, only Massachusetts and Rhode Island mandate holiday compensation, and both include Independence Day on their list of holidays. Ask a lawyer or visit the labor department website for each state for additional information on these states’ holiday pay rules:

Rhode Island is a state in Massachusetts.

Overtime on the Fourth of July is paid at time and a half or double time.

Outside of government employment, as well as in Massachusetts and Rhode Island, it is completely up to the employer to pay overtime or double time for any hours worked on holidays. In the states that demand holiday pay, sometimes known as premium pay, qualifying companies in Rhode Island must pay time and a half, while qualified employers in Massachusetts must pay a 20% premium, or 1.2 times the rate.

Nonetheless, if an hourly employee works more than a 40-hour week as a consequence of the holiday, federal and state overtime requirements would most certainly apply. Additional overtime compensation regulations apply to the amount of hours worked in a single day in Alaska, California, Colorado, Nevada, and Oregon.

California is the only state that mandates double time in certain circumstances. When an employee works more than 12 hours in a day or more than 8 hours on their seventh consecutive day of work, they must work double time.

What happens when the Fourth of July occurs on a weekend?

When a holiday occurs on a Sunday, the states that demand premium or extra compensation for July 4th (currently Massachusetts and Rhode Island) extend the requirement to the following Monday’s “observed” holiday.

When Independence Day occurs on a Sunday, employers that provide holiday pay and time off as a reward may choose to give their workers a day off on the following Monday. Yet, this is not necessary by law. Saturday holidays are traditionally celebrated on the Friday prior.

Companies that extend their hours or hire extra workers for a weekend holiday may be required to pay overtime for those employees who wind up working extra hours. Check out our guide on federal holidays and overtime for additional information on how and if firms must pay their workers on holidays.

Is it necessary for workers to get paid if a company closes for the Fourth of July?

Private firms are not compelled to pay workers while they are closed for the Fourth of July or any other recognized or real holiday. Paid time off to celebrate holidays is often offered to workers in addition to other vacation benefits that may take some time to earn.

How is the Fourth of July holiday pay calculated?

Once you’ve concluded that your workers are due time and a half or double time, calculating their compensation is simple.

A 50% premium is included in time and a half. For example, an employee who is typically paid $10 per hour will earn an extra $5 per hour for each overtime hour, increasing their total salary to $15 per hour.

Double time is an absolute must. Using the same example, an employee who is typically paid $10 per hour will earn an extra $10 per hour for each double time overtime hour, bringing their total salary to $20 per hour.

If you have any more queries about holiday compensation, you may see a lawyer or look into alternative resources for employers and workers.