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No, not unless they actually “work” more than 40 hours per week (48 if your company is not covered by federal law). People often (mistakenly) believe that paid time off – e.g. paid vacations or holidays – count the same toward overtime as actual work when calculating overtime pay. They don’t. Under federal law, most employees are entitled to two primary things – (1) pay of at least minimum wage for each hour worked, and (2) if they are not exempt, 1.5x their regular rate of pay for all hours “worked” over 40 in a workweek. Paid time off is not “work,” so paid holidays or vacation days don’t count toward this 40 hour threshold.

Thompson Coe and myHRgenius Tip of the Week is not intended as a solicitation, does not constitute legal advice, and does not establish an attorney-client relationship.


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