Thanksgiving Legal Guide to Holiday Pay

Are employees eligible to holiday pay on Thanksgiving Day and the following day? Find out about holiday pay, time off, and other workplace perks here.

What you’ll discover:

Is it necessary for me to give additional salary or time off over the Thanksgiving holiday?
Can I refuse time off requests during the Christmas season?
Are contractors and freelancers entitled to holiday pay?
Is it legal for contractors or freelancers to take time off for Thanksgiving?
Is it permissible to give additional pay or benefits for working on Thanksgiving or Black Friday?

The majority of workers have strong feelings about working on holidays. Employers may face comparisons to Ebenezer Scrooge, the miserly antihero of Charles Dickens’ classic “A Christmas Carol,” if they require staff to do so without additional salary or incentives. Nonetheless, many companies and services see increased revenue over the Christmas season because more people are taking time off, shopping, and spending more money. As Thanksgiving approaches, here are answers to frequently asked concerns concerning holiday pay and vacation time.

Is it necessary for me to give additional salary or time off over the Thanksgiving holiday?

No, private companies are not obligated in virtually every state to provide workers with time off or additional compensation on Thanksgiving Day or the following day, or any other holiday. Thanksgiving Day is a federal and state holiday. Almost half of the states also observe the next day as a holiday. Yet, these rules only provide time off or additional compensation to government or public sector workers.

According to state and federal rules, Thanksgiving Day and the following day are typical business days for private enterprises. Massachusetts and Rhode Island are the sole exceptions.

Can I refuse time off requests during the Christmas season?

Yes. Companies may place restrictions on when workers may take time off, even during the Christmas season. The employer may not restrict or limit leave taken under the Family and Medical Leave Act.

Proper vacation periods may be established in a documented Vacation Policy. This policy should be distributed to your employees ahead of the holidays. You may include the following in your policy:

Vacations are forbidden or limited on specified days.
Whether there are any exceptions to the rules for certain roles.
The method of seeking leave, such as submitting a formal Time Off Request.
How will overlapping requests for time off from numerous workers be handled?
The proper application of unpaid leave.

Are contractors and freelancers entitled to holiday pay?

No, unless it is specifically stated in their employment agreement, contractors and freelancers are not entitled to additional compensation for working on Thanksgiving or other holidays. Also, unlike in Rhode Island and Massachusetts, normal workers are not entitled to additional or overtime compensation for working holidays unless an agreement or employer’s policy states otherwise.

It may be tough to locate a contractor or freelancer ready to work for their regular wage on Thanksgiving. In such circumstances, you may want to explore giving more compensation as an incentive to acquire the assistance your company need.

Is it legal for contractors or freelancers to take time off for Thanksgiving?

No. Contractors do not accumulate paid time off, which is one distinction between them and employees. Contractors and freelancers are paid only when they work or according to the conditions of their contract.

A company may offer its workers Thanksgiving or Black Friday off without granting the same time off to its contractors or freelancers. Contractors and freelancers, on the other hand, have greater leeway to set their own working hours and may opt not to work on their own.

Asking contractors to work certain hours may also generate legal questions about whether they are legally classed or should be employed and paid as employees. Companies that have the same criteria for contractors as they have for employees may wish to consult with a lawyer to ensure that their workforce is correctly categorized, since the legal ramifications of misclassification may be severe.

Is it permissible to give additional pay or benefits for working on Thanksgiving or Black Friday?

Yes. Companies are able to design their compensation plans to provide additional pay or other incentives for working on Thanksgiving or Black Friday. Providing incentives and holiday compensation may be a better tactic than forbidding all vacation time over the holidays. They may be used in conjunction with vacation time limits to provide enough coverage. Some employees may choose not to take vacation time in exchange for increased salary or incentives, resulting in fewer schedule conflicts. Moreover, employees like alternatives, so offering them the option of earning additional money or spending the day off with family and friends may help keep morale strong during busy holidays.

Set down your intentions in writing if you give rewards for working on holidays. The policy may describe the nature of the incentive, the time period or hours it applies, and what employees must perform to qualify. This reduces uncertainty and guarantees that adequate assistance is accessible over the holiday season.