Paid Holiday Policy

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 – 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 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.

Nonexempt Employee – 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 Employee – 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.

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.

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.

Regular Part-Time Employee – An employee who works an established schedule of a minimum of 20 hours but less than 40 hours per week.

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.

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.

Proportionate Share Benefit Computation – A proportionate share of a benefit is computed by dividing the number of scheduled weekly work hours by 40.

Policy

GovC observes ten (10) Holidays. 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 ten (10) Holidays observed by GovC are:

* New Year’s Day

* Martin Luther King, Jr. Day

* Presidents’ Day

* Memorial Day

* Independence Day

* Labor Day

* Columbus Day

* Veterans Day *(may substitute the day after Thanksgiving)

* Thanksgiving Day

* Christmas Day

Responsibilities

Eligible employees

Are responsible for the management of their Paid Holiday Benefit as follows.

a. Must make time sheet entries accurately.

b. Must ensure they are entitled to Paid Holiday Benefit.

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.

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 hours are not included in the computation of overtime for employees defined as Nonexempt Employees.

2. 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.

3. Banked but unused Paid Holiday Benefit hours not used will be automatically forfeited at the end of the year.

4. Banked holidays are not eligible for payment when an employee terminates employment.

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.

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

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.

Exceptions

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. 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.