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Should an Exempt Employee be Paid for Mandatory Holidays

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  • 12-22-2014, 02:14 PM
    holidaypay
    Should an Exempt Employee be Paid for Mandatory Holidays
    My question involves employment and labor law for the state of: TX

    Prior to accepting the position, I was informed via email that I would have a 3 month trial period. The email reads "After the 3 month trial period, you will be a full time salaried employee" "Full time salaried employees are offered the following benefits: Health insurance, 401k, Paid Holidays," etc.

    After my 3 month review, when becoming a full time salaried employee, I was delivered a piece of paper concerning benefits. This paper said that some of the benefits, INCLUDING paid holidays, would only kick in after 1 year (I had never heard of this). I was immediately uneasy at the misleading manor in which I was informed about benefits.

    I received an email from our HR lady that outlined the Holiday schedule. It says that we are off on Thanksgiving, Christmas Day, and New Years Day. However, I just received a pay check that shows that I was not paid for Thanksgiving. I asked if this was an error, and was told that it was correct and due to our paid holiday policy not kicking in until one year. I pointed out the absurdity of this, but am being told that this is correct and how the policy is intended to operate.

    Here is my main issue with this:

    - If I work every day except those where we are listed as "off", and never take a PTO (which I don't have anyways), I still won't make my salary due to the holiday deductions. I pointed this out to my supervisor, and told him that my salary cannot be deducted for occasions of employer absence - such as a holiday. The response that I received was that our manufacturing facilities in China are not closed that day, and that if I wanted to, I could have come in to the office and worked. I tried to pin him down on this by asking "So we are expected to work on Thanksgiving, Christmas, and New Years Day?" His response was that "It is optional but available to you".

    Here are my questions:

    1) Is this legal? We don't get overtime, so are definitely salaried exempt. After one year, we have 5 paid holidays per year which are listed out. HR sent an email saying that we are off on Thanksgiving and Christmas. Yet, in spite of this, it is an implied expectation that in order to earn my quoted salary, I will have to work on those days.


    2) Is it legal to give a salaried employee absolutely 0 days off for an entire year? As it stands now, assuming the implication in #1, I have 0 holidays, 0 vacation days, and 0 sick days until after one year of employment here. I know that the US doesn't have a whole bunch of mandates in this regard, but is there something that prevents this type of situation?


    As it stands now, my supervisor is "looking in to everything" but won't be able to make changes immediately. I made him confirm that this means that no matter what they decide on this issue, I will not be receiving pay for Christmas or New years day.

    Any input, advice, or knowledge that you can provide to me would be greatly appreciated. I am sorry things got a bit long-winded here, I just wanted to not leave anything out. Feel free to ask questions if you have them, and thanks in advance.
  • 12-22-2014, 04:42 PM
    adjusterjack
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    Other than paying you minimum wage, the employer is free to set limitations on any other employee benefits.

    Keep pushing this and you'll probably end up on the unemployment line.
  • 12-22-2014, 05:53 PM
    flyingron
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    They have to pay you, they can deduct any leave time that they provide in the process.
    Yes, it is legal not to give any days off.
  • 12-22-2014, 06:08 PM
    llworking
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    I agree with everybody else. However, I think that your employer is being very shortsighted. They won't keep employees who have the option to go elsewhere with those kinds of policies. I suggest that you start looking for another job, and once you find one, leave them behind.
  • 12-22-2014, 09:21 PM
    holidaypay
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    Thanks for all your responses. You're right, they are being very short sighted and they will learn the hard way. Most companies give Christmas bonuses, and this company is making it the worst time of the year in terms of income. I have no clue how they can't see this as detrimental even in spite of my protests. This is the sleaziest thing I have ever seen in terms of a loophole. They found a way to deny overtime, deduct holidays like Christmas from my salary, and deduct any absences I have from my salary for a year (no PTO or even sick days) - well done.
  • 12-22-2014, 09:31 PM
    cbg
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    It is your job duties and not how you are paid that determines whether you are an exempt employee. Not all salaried employees are exempt: not all exempt employees are salaried.

    There is no law anywhere in the US, where private employers are concerned, that requires that you ever get a holiday or a paid day off. In many states, including Texas, you could legally be required to work 365 days a year. And while I do not disagree that it is shortsighted, that does not change the law.

    I do, however, see a couple of potential flaws in the employer's policies. Before I go any further with them, could you give me an idea of your job duties?
  • 12-22-2014, 11:37 PM
    holidaypay
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    Quote:

    Quoting cbg
    View Post
    could you give me an idea of your job duties?

    I do a variety of things. I work in the corporate office for a manufacturer. I do things such as account management, market research, bid/proposal preparation, and a little order processing for a few accounts. I have raised concerns to my supervisor, and he assured me that we are salaried exempt (even though the CFO previously told me that I only get paid for the time I work, in defense of why I was not paid on Thanksgiving).

    I'm sure I know what you are getting at and yes - they are considering us salaried exempt (dont get paid overtime) while still deducting from our salaries on days like Thanksgiving, where we are off. Grant it, they only do this for employees who have been there for less than a year, using their terrible benefit policy as justification (paid holidays don't kick in until after a year).
  • 12-24-2014, 09:31 AM
    DAWW
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    All employees are inherently non-exempt until/unless the employer can support an exception. If you are Exempt (not yet determined), so far based on what you have said, it sounds like the Administrative exception. Which is not impossible, but that is a hard exception for the employer to support. Aside from the basic rules (see below), DOL (generally state) looks at how they have classified similar jobs in the past,
    http://www.dol.gov/whd/regs/complian...nistrative.htm

    Like CBG, assuming you are indeed Exempt Salaried under one of the White Collar exceptions, and subject to the 29 CFR 541.602 Salaried Basis rules, then I have some problems with the employer paying holidays for some Exempt Salaried employees and not others. That is not supported under 541.602. I am not saying that this is a sure thing, but if you were to file a wage claim for a 541.602 violation, I like your chances. Whether you should rock this particular boat while still an employee is yet another issue. The big issue is not the holiday pay per se, but rather the Exempt status and unpaid overtime. However strong the employer's case is for the Administrative Exempt classification playing games with the 541.602 rules weaken that case. My main reaction is the employer is an idiot to open that door.
    http://www.ecfr.gov/cgi-bin/text-idx...e29.3.541_1602
  • 12-24-2014, 10:23 AM
    eerelations
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    Quote:

    Quoting holidaypay
    View Post
    ...Most companies give Christmas bonuses...

    Actually most companies don't. I have done extensive research on this and the companies that give Christmas bonuses are in a definite minority. In addition, many of those companies (i.e., the minority that give Christmas bonuses) give said bonuses only to senior-level staff. Off topic, I know, just correcting a misconception. :)
  • 12-24-2014, 10:26 AM
    holidaypay
    Re: Should an Exempt Employee be Paid for Mandatory Holidays
    Hey DAWW,

    Thanks for your reply, and Merry Christmas. I really appreciate your feedback. The more that I am looking in to this, the more it seems that there is foul play.

    Just so that I understand your assessment: What is the doubt in your mind concerning this issue? What scenario or circumstance would lead them to be in the right when they both deny overtime and deduct from salary on off days? It sounds like one of your main issues is that they are deducting for days like Thanksgiving from some exempt employees, but not from others. Does their "holiday pay after 1 year" benefit (which was misleadingly communicated to me) protect them in this instance; since they are allowed to deny benefits as they see fit?

    Again, thanks for all of your help with this.
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