Do Part-Time Employees Get Holiday Pay?

Navigating holiday pay for part-time employees can feel like untangling a web of conflicting laws and regulations, especially when those laws vary widely between countries and jurisdictions. 

For employers managing a global workforce, ensuring compliance while offering attractive benefits is not just a challenge—it’s a necessity. Without a clear understanding of local labor laws, employers risk non-compliance. At the same time, employees could miss out on their rightful entitlements. 

At Deel, we understand these complexities better than anyone. We have expertise in managing employment contracts and compliance for companies worldwide. In this blog, we’ll explain how holiday pay works for part-time employees in the U.S. and internationally, highlighting actionable steps to stay compliant while creating equitable, competitive policies.

Holiday pay for part-time employees in the US

Regarding US federal laws, the department of labor’s Fair Labor Standards Act (FLSA) states that time not worked does not require payment. Time not worked includes vacation days and federal holidays, such as Thanksgiving Day, Independence Day, Labor Day, Memorial Day, Christmas Day, New Year’s Day, Veteran’s Day, and Martin Luther King Jr Day. 

The federal government generally views holiday pay as a “matter of agreement between employer and employee.” For example, an employer may provide part-time employees with a premium pay rate such as time and a half or double time for working on a national holiday like Labor day. As long as the employer’s policy is clear and accessible in an employee handbook and followed consistently, any approach regarding paid holiday time is legally acceptable.

There are exceptions to these rules:

• The employee falls into a classification protected by the McNamara O’Hara Service Contract Act (SCA) and is entitled to holiday pay
• The employee falls into a classification protected by the Davis-Bacon and Related Act and is entitled to holiday pay
• The employee is non-exempt and the holiday hours are considered overtime pay. Non-exempt employees make less than $684 a week or $35,568 annually. The thresholds can differ by state
• The employee is covered by a collective bargaining agreement

State laws can differ from federal laws. For example, holiday pay is mandatory for full-time employees in Rhode Island and Massachusetts; however, these regulations do not extend to part-time work.

While there is no legal guarantee for part-time employees to receive paid holiday time off in the US, statistics show that in 2022, about 24% of part-time civilian workers with paid holiday policies took less than five days of paid holidays. Only 2% had 12 days of paid holidays.

The good news is that employee benefits for part-time workers are trending upward in the US. Vacation pay, worker’s compensation, retirement plans, disability insurance, sick leave, parental leave, and health insurance are becoming standard perks, particularly among large employers. 

Holiday pay for part-time employees around the world

While the US is an anomaly, many other countries mandate holiday pay for part-time employees. Here are some examples:

• In Italy, labor laws require part-time employees to receive the same privileges and conditions as full-time workers, proportional to hours worked
• In Germany, holiday leave for part-time employees is calculated pro rata, which depends on their weekly working hours
• In Singapore, part-time workers receive holiday pay, pro-rated based on the number of hours worked
• In the UAE, part-time workers have access to holiday pay based on hours worked
• In Slovenia, part-time employees have the right to a minimum of four weeks of paid annual leave
• In Australia, part-time workers get the same entitlements as full-time workers but are paid pro rata
• In Canada, part-time employees are entitled to paid holiday adjusted to the number of hours the part-time employee usually works

Navigate holiday pay compliance with Deel

Staying compliant with the local employment laws, including mandatory paid holidays, is a big concern for many employers wanting to hire internationally, but don’t let it stop you from diving into the global talent pool.

Deel ensures each contract a full-time employee or contractor signs is entirely compliant with local regulations. Finally, there is no need to learn a new set of rules each time you’re ready to hire in a new country.

Sound like the solution you’re looking for? Read all about managing compliance seamlessly, or book a demo to see Deel in action today.