July 4th Closure Raises Wage/Hour Issues

This year (2006), the July 4th holiday falls on Tuesday. Many employers will be closed and give employees holiday pay as long as they work the day before and after the closure.  However, guidance from the Employment Standards Administration within the Wage Hour Division, US Department of Labor, states that a policy that withholds holiday pay when an employee does not work the day before and after the holiday is not enforceable against an exempt, salaried employee in most cases.  According to the guidance, unlike a full-day absence for a personal reason, it is the company that directs the shutdown on a holiday.  In such a case, where the exempt, salaried employee performs work during any part of the week, she is entitled to her predetermined salary.