Check contract to see if you owe exempt union members holiday pay

Q         We are a public employer and have several exempt union employees who came in to shovel snow on a holiday they were supposed to have off. Our union members normally get overtime pay if they work on a holiday, but these employees are exempt under the Fair Labor Standards Act (FLSA). Should we pay overtime since they came in on the holiday?

A   Your question raises two issues to consider. First, are the employees truly exempt? If they meet all the criteria for an exempt employee (salary and duties test), then you don’t need to pay overtime. That means no additional pay is needed regardless of whether the employees worked a holiday, the number of extra hours they work per week, or whether the additional time is voluntary or mandatory.

Second, make sure your union contract doesn’t require you to pay the employees additional compensation for working on the holiday. Most union contracts will distinguish between exempt and nonexempt when it comes to overtime and holiday pay.

If your union contract requires overtime pay only when nonexempt employees work on a holiday, then there’s no obligation to pay the exempt employees extra. If the contract doesn’t distinguish between nonexempt and exempt, you likely have a contractual obligation to pay the additional compensation.

Jason S. Ritchie is a partner with Ritchie Manning Kautz PLLP in Billings, Montana. You can reach him at jritchie@rmkfirm.com or 406-601-1400.