With the holidays fast approaching, a familiar question received by our office from employers is “must I pay my employees holiday pay?”  The answer to this question in New Jersey is no.  New Jersey employers are only required to pay employees for hours actually worked.  No pay is required to an employee who is given the day off for a holiday.  Moreover, an employer is under no duty to provide their employees premium pay when working on a holiday.   Typically, the only time an employer must pay an employee a rate that exceeds their normal rate is when the employee works in excess of 40 hours or if the employer has agreed to provide such benefits within a contract or an employee handbook.

Of course just because an employer is not obligated to provide holiday pay does not mean they should not consider doing so.  Many employers throughout New Jersey offer holiday pay despite the fact that they are not legally bound to do so.  It is up to each individual employer to weigh the cost/benefit in doing so.