Difference between revisions of "Paid Holiday Policy"

Revision as of 10:15, 31 December 2015

Process Owner

Senior Executive of Corporate Human Resources

Purpose

To identify the process by which paid holidays are recognized and observed by GovC employees. Definitions

Holiday – Any weekday (Monday – Friday) designated by the Federal Government as a day off from work. Paid Holiday Benefit – Generally, payment by GovC of eight (8) hours regular pay to an eligible GovC employee for each Holiday observed by GovC. FLSA – Fair Labor Standards Act of 1938, as Amended. A federal law that establishes minimum wage, overtime pay, equal pay, recordkeeping, and child labor standards for employees who are covered by the FLSA. Under the FLSA, job positions may be classified as either "Nonexempt" or "Exempt." The classification of a position is determined based on its specific job duties and salary basis tests in accordance with FLSA exemption criteria. See GovC Policy & Procedure HR 507. Nonexempt Employees – Employees who hold and perform jobs that are not qualified for exemption from the FLSA Overtime Compensation Requirements. Nonexempt employees must be paid on an hourly basis and are entitled to receive overtime pay (1 ½ times their regular rate of pay) for all hours worked in excess of 40 hours in a work week. However, some states (e.g. California) provide greater benefits to nonexempt employees by exceeding the requirements of the FLSA. Exempt Employees – Employees who perform jobs that are exempt from the FLSA Overtime Compensation Requirements. Exempt employees are not legally entitled to receive overtime pay under the FLSA. Notwithstanding the foregoing, in certain cases, GovC voluntarily pays straight-time overtime to eligible exempt employees for all hours worked in excess of 80 hours in a pay period. The hourly overtime pay rate for exempt employees is equal to the quotient of the exempt employee’s annualized base salary divided by the annual work schedule hours (e.g. typically 2080 for full-time employees). Entitlement to straight-time overtime is based on local Group practice and business necessity, not law, and is subject to change. Regular Full-Time Employee – An employee who is employed for an undesignated period of time at a stated salary or hourly rate and scheduled to work a minimum of 40 hours per week. See GovC Policy & Procedure HR 201. Temporary Full-Time Employee – An employee who is hired to work a minimum of 40 hours per week on a temporary basis at an hourly or salaried rate of pay for a specific time period defined at the time of hire or until a task identified at the time of hire is completed, not to exceed six (6) months in either case. See GovC Policy & Procedure HR 201. Regular Part-Time Employee – An employee who works an established schedule of a minimum of 20 hours but less than 40 hours per week. See GovC Policy & Procedure HR 201. Temporary Part-Time Employee – An employee who is hired to work an established schedule of a minimum of 20 hours but less than 40 hours per week on a temporary basis at an hourly or salaried rate of pay for a specific time period defined at the time of hire or until a task identified at the time of hire is completed, not to exceed six (6) months in either case. See GovC Policy & Procedure HR 201. On-Call Part-Time Employee – An employee who is employed to work on call as needed, normally when averaged would amount to an average of 19 hours or less per week. Not eligible for GovC benefits. On-call employees who have not been called to work within a six-month period may be terminated from the payroll system. See GovC Policy & Procedure HR 201. Proportionate Share Benefit Computation – A proportionate share of a benefit is computed by dividing the number of scheduled weekly work hours by 40.

Policy

Generally, GovC observes ten (10) Holidays. However, some of GovC’s Business Units observe nine (9) Holidays*. In some cases, overseas employees may not receive holidays when their assignments are in countries where American holidays are not observed. In this case, their holiday accruals are rolled into their PTO or Home Leave plan accruals. To be eligible to receive a Paid Holiday Benefit, employees must be Regular Full-Time Employees or Regular Part-Time Employees working at least 20 hours each week. Regular Part-Time Employees are eligible to receive a proportionate share of pay for holidays. Regular Part- Time Employees will receive Paid Holiday Benefits calculated using the Proportionate Share Benefit Computation (see Definitions). Temporary Full-Time and Temporary Part-Time Employees become eligible to receive Paid Holiday Benefits after they have been on the active payroll for 30 days. They must work schedules of at least 20 hours each week. Part-Time Employees working schedules of less than 20 hours or who are On-Call are not eligible to receive Paid Holiday Benefits. The nine or ten (9 or 10) Holidays generally observed by GovC are: • New Year’s Day • Martin Luther King, Jr. Day • Presidents’ Day • Memorial Day • Independence Day • Labor Day • Columbus Day *(not recognized by certain Business Units) • Veterans Day *(certain Business Units may substitute the day after Thanksgiving) • Thanksgiving Day • Christmas Day Responsibilities

1. All eligible employees. Are responsible for the management of their Paid Holiday Benefit as follows. a. Must make time sheet entries accurately. (Holiday TRC is H). b. Must ensure they have accrued Paid Holiday Benefit hours to use prior to utilizing the hours. c. If an Exempt Employee works on a Holiday, the unused Paid Holiday Benefit is considered “banked.” The Exempt Employee must coordinate with his or her supervisor regarding use of the banked Paid Holiday Benefit hours on a later date. See Procedures, Section 4 and 5. 2. Supervisors/Managers. Are responsible for reviewing and approving Paid Holiday Benefit time charges made by employees under their supervision. Supervisors should ensure that Paid Holiday Benefit time is charged in accordance with this policy. Procedures 1. Paid Holiday Benefit time cannot be charged on the first or last day of employment. In other words, an employee must have worked or been in paid status for at least one day before and after the date that the Paid Holiday Benefit is used. 2. Paid Holiday Benefit hours are not included in the computation of overtime for employees defined as Nonexempt Employees by GovC Policy & Procedure HR 507. 3. If an employee does not work on one of the Holidays observed by GovC, the employee must charge Paid Holiday Benefit hours for that day. Exception: Exempt employees may be permitted to bank the scheduled holiday if they worked and recorded 80 or more hours within the pay period regardless of whether they actually worked on the specific day the holiday was observed. This generally applies in cases involving direct support of customers. 4. Banked but unused Paid Holiday Benefit hours not used will be automatically forfeited; therefore, employees should manage and use their banked Paid Holidays as follows: Holidays occurring in the first six months of the year that are banked must be used by June 30 of the same year or the employee forfeits those banked holidays. Holidays occurring in the last six months of the year that are banked must be used by December 31 of the current year or the employee forfeits those banked holidays. 5. Banked holidays are not eligible for payment when an employee terminates employment. 6. Time Charging for Non-Exempt Employees a. Nonexempt Regular and Temporary Full-Time Employees are eligible to receive eight (8) hours of Paid Holiday Benefit for each Holiday. Nonexempt Full-Time employees who work on a Holiday must be paid for all hours worked plus eight (8) hours of Paid Holiday Benefit, unless they have been authorized by their supervisor to bank the Holiday. b. Nonexempt Regular and Temporary Part-Time Employees are eligible to receive a Proportionate Share Benefit (based on their regular scheduled hours) of Paid Holiday Benefit for each Holiday. Nonexempt Part-Time employees who work on a Holiday must be paid for all hours worked plus their proportionate hours of Paid Holiday Benefit, unless they have been authorized by their supervisor to bank the Holiday. c. Note: the calculation of overtime pay for Nonexempt employees does not include Paid Holiday Benefit hours because such hours are not “hours worked” under the FLSA (refer to HR 507). 7. Time Charging for Exempt Employees a. Exempt Regular and Temporary Full-Time Employees are eligible to receive eight (8) hours of Paid Holiday Benefit for each Holiday. Exempt Regular Full-Time Employees who are required to work on a Holiday will: (i) be paid at their regular salary for the week; and (ii) with management approval receive a like period of time off to be taken as described in section #4. b. Exempt Regular and Temporary Part-Time Employees are eligible to receive a Proportionate Share Benefit (based on their regular scheduled weekly hours) of Paid Holiday Benefit for each Holiday. Exempt Part-Time Employees who are required to work on a Holiday will: (i) be paid at their regular salary for the week; and (ii) with management approval receive a like period of time off to be taken as described in section #4. 8. Exceptions: a. GovC recognizes that some employees may wish to observe, as periods of worship or commemoration, certain days which are not included in the Company’s regular holiday schedule. Accordingly, employees who wish to take a day off for such reasons may be permitted to do so if the employee’s absence would not result in an undue hardship on the conduct of the Company’s business and if the employee’s supervisor approves. With management approval, employees must first use accrued days of paid leave, including “banked” Paid Holiday Benefits, or if they do not have adequate paid time, then they may use unpaid leave on such occasions. Employees must provide sufficient advance notice of such leave requests so that management may make suitable work coverage arrangements. b. GovC employees who are hired or transferred to Business Units or contracts that designate different Holiday observances, such as those covered by the Service Contract Act, will be subject to those regulations. (The provisions of certain contracts may supersede this Policy and Procedure for employees so covered.) Employees should consult with their supervisors or Human Resources Representatives for specific details.