How Is Holiday Pay Calculated? - Leeds West Groups

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How Is Holiday Pay Calculated?

Quick Answer

Holiday pay is a company-provided benefit paid to eligible team members for 8 hours per qualifying holiday and is calculated based on your pay type. Holiday pay is not considered hours worked and does not count toward overtime.

How Holiday Pay Is Calculated by Pay Type

Hourly Team Members

Calculation: Hourly rate × 8 hours

Salaried Team Members

Holiday pay is reflected as a continuation of your regular salary.
No additional hours are added beyond your standard salary pay.

Commission-Based Team Members

Holiday pay is calculated using an effective hourly rate based on a rolling 12-month average of eligible earnings divided by eligible hours worked.
Calculation: Effective rate × 8 hours

Eligible earnings and hours for the calculation include regular, overtime, overtime premium, and commission only. Bonuses and prior PTO or holiday pay are excluded.

Important Holiday Pay Rules

1 holiday = 8 hours
Holiday pay does not count toward overtime
Only actual hours worked count toward overtime calculations
Holiday pay is based on eligibility, schedule, and attendance requirements outlined in the LWG Paid Holidays policy

Tags

Paid Holidays (5) Holidays (5) Holiday Pay (4)

Disclaimer:
This article provides general information and guidance and may not address every situation or state-specific requirement. It does not create a contract, guarantee, or promise of any specific outcome. Company policies, practices, and legal requirements may vary by state and may change over time. This article does not replace or supersede applicable laws or official Company policies, handbooks, manuals, or training materials.

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