Holiday Season Compliance Tips for California Employers
As the holiday season approaches, it’s the perfect time for California employers to revisit their policies on holiday leave, scheduling, and pay practices. Last week, we covered key vacation considerations for the busy season. This week, we’re focusing on five important reminders to help ensure compliance and smooth operations as the year winds down.
1. Holiday Time Off Is Not Required by Law
There is no federal or California law requiring employers to give employees time off for holidays—unless the request is related to a sincerely held religious belief (covered below). Time worked on holidays, Saturdays, and Sundays is treated the same as hours worked on any other day.
However, consistent application of your company’s policies is crucial, especially for 24/7 operations such as restaurants, hospitality, and healthcare.
2. No Requirement for Paid Holidays or Premium Pay
California employers are not required to pay employees for holidays they do not work, nor must they provide premium pay for hours worked on a holiday.
Employers may voluntarily offer holiday pay, but these benefits should be clearly outlined in handbooks or written policies.
Exceptions:
Massachusetts and Rhode Island require certain businesses to pay time-and-a-half or premium pay on specific holidays.
3. Religious Holiday Observances Require Accommodation
Employers must provide reasonable accommodations for employees who cannot work due to religious observances. This may include:
Adjusting schedules
Allowing shift swaps
Permitting use of accrued time off
As always, accommodation requests require an individualized assessment. Employers in industries that regularly operate on holidays—like retail, restaurants, and hospitality—should communicate scheduling expectations early and ensure managers understand the accommodation process.
4. Paid Holiday Benefits Do Not Accrue Like Vacation
If your company offers paid holidays, remember:
Holiday pay does not accrue like vacation.
Unused holiday pay does not need to be paid out upon separation.
Holiday pay typically requires the employee to be actively employed on the holiday.
Many employers also set eligibility rules—such as requiring employees to work their scheduled shift before and after the holiday. These rules must be clearly communicated and consistently applied.
5. Payroll Timing May Shift When Holidays Affect Paydays
If a holiday falls on a regular payday and your business is closed, wages may be processed on the next business day, depending on state requirements
To avoid surprises, employers should:
Review their state’s payroll timing rules
Check their payroll provider’s holiday schedule
Confirm year-end processing deadlines
If you’d like assistance reviewing your holiday policies or communicating expectations to your team, HR Advisors is here to help.