Compliance
Overtime, Holiday Pay & PTO Calculations FAQ
Holiday weeks, PTO days, and sick time create some of the most error-prone payroll calculations in any pay period. This FAQ answers the questions payroll administrators, HR managers, and operations leaders ask most often about how paid-but-not-worked hours interact with overtime thresholds and premium rates under FLSA, California law, and employer policy.
20 questions
- What is time-and-a-half holiday pay?
- Time-and-a-half holiday pay is a premium rate equal to 1.5 times an employee's regular rate of pay, applied to hours worked on a designated holiday. No federal law mandates it. It is typically required by employer policy, a collective bargaining agreement, or state law. For a deeper explanation of how this rate applies across different pay structures, see how to calculate overtime pay.
- What is double-time-and-a-half on holidays?
- Double-time-and-a-half means an employee earns 2.5 times their regular rate. This combines a 2x double-time overtime premium with a 0.5x holiday premium applied simultaneously. The scenario arises most often in California, where daily double time kicks in after 12 hours worked and the employee also qualifies for holiday premium pay under employer policy.