As the holiday season approaches questions are arising regarding holiday pay to employees. Neither the federal nor the NJ Department of Labor require payment to non-exempt employees for time not worked. Generally, paid days off are subject to the agreement between the employer and the employee (or the employee's representative). If a company chooses to pay employees for the time away from work for the holiday, the payment is not required to be counted as "hours worked" for purposes of calculating overtime compensation. For the prevalent practices of EANJ members on holidays and overtime, please see the Employee Relations Practices section of the EANJ Manual.