Q: If employees are required to work on a holiday are they entitled to ‘premium’ pay?
A: Premium pay is generally set by individual company policy. There are no state or federal laws affecting Texas which require an employer to pay additional wages for working on any day of the year (holidays) or week (weekends).
Q: Does an employer have to offer its employees vacation pay? If so, what are the guidelines?
A: Under the Texas Payday Law an employer is not required to offer fringe benefits such as vacation pay, holiday pay or other pay for hours not worked. However, if the employer offers these benefits in writing, the employer would be obligated to comply with their own policy or employment agreement. The employer has the right to establish policy on how these benefits are earned, accrued, used and if they are paid out when not used, barring any policy which might be considered discriminatory as defined by law.