How to Manage Expectations with Holidays & Overtime Pay in Summer
Summer brings sunshine, long weekends, and a wave of employee time-off requests, but it can also bring confusion around holiday pay and overtime policies. As an employer, it’s important to clearly communicate expectations and stay compliant with wage and hour laws during the busy summer months. Setting the right tone in advance can help prevent misunderstandings and legal issues down the road. Here are some key tips to help you manage holiday pay and overtime expectations this summer.
Communicate Paid Holiday Policies in Advance
Summer holidays like Labor Day often lead to questions about employee rights regarding time off and pay. If employees aren’t sure which holidays are paid, or whether they’re required to work, it can cause frustration and issues. To avoid confusion, provide your company’s holiday schedule at the start of the calendar year, and include clear information about which holidays are paid, who is eligible, and any special considerations for part-time or temporary staff. As a holiday nears, send out reminders so expectations are fresh, and employees can plan accordingly. A little proactive communication goes a long way in reducing misunderstandings.
Clarify Eligibility Requirements
Not all employees qualify for paid holiday benefits, and assumptions about eligibility can lead to disappointment or disputes. For example, part-time, temporary, or probationary employees may not receive the same holiday pay as full-time, permanent staff. Some companies also require employees to work a certain number of days or to be employed for a specific length of time before qualifying for holiday pay. To avoid confusion, clearly outline these eligibility criteria in your employee handbook, onboarding materials, and internal policies. It’s also a good idea to remind staff of these rules ahead of major holidays, either through team meetings, internal emails, or FAQs.
Document and Reinforce Your Overtime Policy
To avoid confusion or compliance issues with overtime pay, it’s essential to have a clear and well-documented policy in place. Make sure your policy is up to date with current federal and state laws, and that it outlines who is eligible for overtime, how overtime is calculated, and the process for approving additional hours. In most cases, employees should receive prior authorization before working overtime. Without clear communication, well-meaning employees who voluntarily work late may expect compensation the company didn’t budget for. Reiterate that overtime pay is based on the employee’s regular rate of pay and kicks in after 40 hours worked in a single workweek.
Watch for State-Specific Rules
While federal law sets the baseline for holiday pay and overtime, employers should also be aware of state-specific rules that may impact how they manage employee expectations. In Wisconsin, private employers are not required to provide paid holidays or additional pay for working on holidays. These benefits are entirely up to the employer’s policy. Overtime must be paid at 1.5 times the regular rate for all hours worked over 40 in a workweek, consistent with federal law. Wisconsin does not mandate meal or rest breaks for adult employees, but those under 18 must receive a 30-minute break after six consecutive hours of work. Some industries are also subject to a “one day of rest in seven” requirement. Employers should review their policies to ensure compliance and clearly communicate any benefits that go beyond these legal requirements.
For more guidance on navigating holidays and time off for employees, contact Walcheske & Luzi for a consultation.