Navigating the Holidays Without Compromising Compliance

The holiday season can bring unique compliance challenges, from scheduling and pay practices to time-off requests and workplace inclusion. Taking a thoughtful, consistent approach to holiday practices helps ensure everyone feels recognized and respected, while keeping compliance on track.

Holiday Pay: Clarity Is the Greatest Gift

When it comes to holiday pay, clarity is key. Neither federal nor California law requires private employers to provide paid holidays, but many do as part of their overall benefits package. What matters most is consistency. Employees should understand which holidays are paid, which are not, and what happens when work is required on an observed holiday.

For non-exempt employees, confirm whether holiday hours are paid at the regular rate or a premium rate (such as time and one-half), and make sure overtime is calculated correctly when a holiday falls within the workweek. For exempt employees, remember that if they perform any work during the week, they should typically receive their full salary, even if the office closes midweek for a holiday.

Inclusive Holiday Celebrations

The holidays can mean different things to different people, and not every employee will feel comfortable participating in workplace festivities. A truly inclusive approach honors this diversity and makes everyone feel part of the celebration.

Consider decorations and messaging that reflect multiple holidays or keep themes more general (such as gratitude or togetherness). Offer flexibility for employees who observe different holidays or request time off for religious observances. And make sure participation in any holiday event is voluntary, never an expectation or required.

Keeping the Holiday Spirit Professional

While holiday gatherings and gifts can be a great way to connect, they also require a little planning to avoid missteps. Review your policies on employee conduct, alcohol use, and gift exchanges before hosting company events. Communicate expectations clearly to managers and staff so everyone can enjoy themselves safely and appropriately.

A few well-placed reminders about respectful communication, professionalism, and transportation options can go a long way in protecting both your people and your business.

Start the New Year on Steady Ground

Before closing out the year, double-check that your holiday pay, floating holiday, and office closure policies are clearly stated in your handbook and accurately reflected in your payroll setup. Confirm managers know how to handle time-off requests consistently across departments.

And as you plan for the year ahead, consider how your holiday practices reflect your workplace culture. A balance of appreciation, inclusion, and compliance helps ensure that every employee feels valued, no matter which holidays they celebrate.

If you would like support reviewing your policies or planning inclusive celebrations, our team can help you protect the holiday spirit while keeping compliance covered.