Reviewed by Amber Boyd Moorman
Working Thanksgiving, Christmas, or New Year’s Day? You may be wondering whether your employer owes you time and a half. In Indiana, the answer usually surprises people: private employers are generally not required to pay extra for holidays, or to give paid holidays at all. But if your employer promised holiday pay, or you worked overtime, you may still be owed money. This guide explains the rules.
For year-round pay rules, see our guide to Indiana paycheck rules.
Does Indiana law require holiday pay?
No. We are not aware of any Indiana statute requiring private employers to pay extra for working a holiday. Federal law does not require it either. The U.S. Department of Labor explains that the Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as holidays. Those benefits are a matter of agreement between you and your employer.
Indiana does list official legal holidays (Ind. Code § 1-1-9-1), but that list does not require private employers to close or pay anything extra. Some workers on federal contracts may have different rights under their wage determinations.
Do I get time and a half for working Thanksgiving or Christmas?
Only if your employer has agreed to pay it, or you work overtime. A holiday is treated like any other day for overtime purposes. If you work Thanksgiving and your total for the week stays at 40 hours or less, your regular rate is generally all the law requires.
How do holidays affect overtime?
Overtime is based on hours actually worked in the workweek. Non-exempt employees must be paid at least 1.5 times their regular rate for hours over 40. See who qualifies for overtime in Indiana.
Two rules trip people up:
- Paid time off does not count as hours worked. If you get 8 hours of holiday pay and work 36 hours that week, you were paid for 44 hours but worked only 36, so no overtime is required. Your employer can choose to be more generous.
- Holiday premiums may count against overtime. If your employer pays at least time and a half for working a holiday, that extra can be credited toward overtime owed for the week. If the premium is less than time and a half, it must be included in your regular rate and it cannot be credited (29 U.S.C. § 207(e); 29 C.F.R. § 778.203).
Here is an example. You earn $20 per hour and work 48 hours in a week, including 8 hours on Thanksgiving, which your employer pays at time and a half. You should get 40 hours at $20 plus 8 hours at $30, or $1,040 for the week. The holiday premium can cover the overtime, so your employer does not have to pay both on those 8 hours. But if it paid $20 for all 48 hours, you are owed money.
Pay for a holiday you did not work is different. It does not go into your regular rate, and it cannot be credited toward overtime (29 C.F.R. § 778.218).
What if my employer promised holiday pay?
Then it may be enforceable. Check your offer letter, handbook, union contract, and pay records. If your policy says employees get eight hours of holiday pay or time and a half on listed holidays, your employer cannot simply skip it for you.
Two ways to look at a promise like this:
- Wage claim. Indiana courts treat vacation pay as deferred compensation owed unless a contract or published policy says otherwise (Die & Mold, Inc. v. Western, 448 N.E.2d 44 (Ind. Ct. App. 1983)). The same reasoning may apply to earned holiday pay, though we have not found an Indiana case directly on point.
- Contract claim. A clear written promise can also be enforced as a contract.
Under the Wage Payment Statute, unpaid wages can come with attorney fees, and with more in bad-faith cases. Watch for policy conditions, such as having to work the day before and after the holiday, or be employed a certain number of days. See how to file a wage claim.
Can my employer make me work on a holiday?
Generally, yes. With no contract saying otherwise, an employer can schedule you on a holiday and discipline you for not showing up. There is one important exception: if you need the day for a religious observance, your employer may have to accommodate you. See religious holiday rights.
Holiday scheduling also cannot be used to discriminate or retaliate. If only certain workers always get stuck with holidays because of a protected trait or after a complaint, that is a different issue. See retaliation at work.
If you are salaried
If you are a salaried exempt employee, your employer generally cannot cut your pay because the office closed for a holiday. You must receive your full salary for any week in which you do any work, and deductions are not allowed for absences caused by the employer or for days when work is not available (29 C.F.R. § 541.602). Being called “salaried” does not always make you exempt, however. If your employer treats you as salaried but docks you for a holiday closure, ask why.
If your hours get cut for a holiday closure
Hourly workers generally do not have to be paid for days the business is closed unless a policy says so. Check the policy. If your employer requires you to use PTO for a closure, your handbook will usually control. See Indiana PTO payout rules.
What to do if your holiday pay looks wrong
- Compare your pay stub with your time records for the week.
- Find the policy or offer letter that describes holiday pay.
- Ask payroll or HR in writing what happened.
- Keep copies, and note when you asked.
- Do not wait too long. Wage claims generally must be brought within two years, and federal overtime claims have their own limits. See Indiana claim deadlines.
Frequently asked questions
Is holiday pay required in Indiana?
No. Private employers do not have to offer paid holidays or pay extra for working them unless they agreed to.
Is Sunday pay different in Indiana?
Not by itself. Federal law does not require premium pay for weekends, and we are not aware of an Indiana law that does.
Does holiday pay count toward 40 hours?
No. Only hours actually worked count, unless your employer has a more generous policy.
Can my employer require me to work the day after Thanksgiving to get holiday pay?
Yes, if that is the policy. These conditions are common and generally allowed, if applied evenly.
Do part-time workers get holiday pay?
Only if the employer’s policy provides it. The law does not require it.
Can my employer deny holiday pay to some workers only?
It can have different rules for groups of workers, but it cannot make those choices based on a protected trait or to retaliate.
Get help with unpaid wages
If you believe your employer shorted your holiday pay or overtime, contact Amber Boyd Law for a free case evaluation. We help Indiana workers with unpaid wages claims.
This article provides general information about Indiana and federal employment law. It is not legal advice, and reading it does not create an attorney-client relationship.
