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Should Salary Paid Employees Get Holiday Pay?

Joe Marconi
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Alex

Alex

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The issue with this plan is that if a service advisor chooses every Monday, for example, he will not have off Monday in a week where the holiday falls on another day, as in Thanksgiving week. And, if the holiday falls on his chosen day, Monday, as in Memorial Day, the service advisor feels that he as somewhat lost out because the shop was closed anyway.

I gotta agree, they actually get screwed out of a holiday... :o

 

I think it all boils down to what you offer as part of your company benefits package. There is no actual law requiring you to pay exempt employees time off on holidays, but from what I have seen, honoring the 6 standard US paid holidays for salaried employees is usually fair in most cases as part of the benefits package...as long as it makes sense for your business. The days are..

 

New Years Day

Memorial Day

4th of July

Labor Day

Thanksgiving

Christmas Day

 

If the holiday falls on a weekend day when the shop is closed, there could be an observed day given, like the following Monday.

 

So for salaried employees, a week that includes one of those holidays, they should in actuality have 3 days off.

 

If you close your shop the day after Thanksgiving or Christmas/New Years Eve, that should be one of their days off and not a paid holiday.

 

It really just depends on what your policy is, but I feel that if you pay hourly employees holiday pay, salaried should get some compensation as well in a way of an extra day off or a floating day to be used at a later date in leu of the holiday.

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Alex

Alex

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I'm not sure I see the conflict...let's see...

 

Salaried with normal day off on Monday during Memorial Day week for a shop normally open Monday through Saturday let's say, and the other day off is Sunday. Closing on Memorial Day.

 

Salaried - Days off are Sunday (closed), Monday (usual & holiday closed), and one more day picked or given in leu of holiday. That becomes let's say a 32 (8 hour a day) hour actual work week. Yes salary is not hourly, but to make it a fair time wise comparison, I'm using an 8 hour day. But, because they are salaried, they got their full 40 hour pay that week. So their benefit is the extra day off.

 

Hourly - Days off Thursday (usual), Sunday (closed), & Monday (holiday closed). They worked only 4 days that week, or 32 hours. You paid them 'holiday pay" an extra 8 hours for Monday, which brought them up to 40 hours for their week. Their benefit is also an extra paid day off.

 

Again, this is not for everyone, but if you go to a large chain like Sears Auto or other corporation, more than likely, they follow something like this. In addition, hourly employees could get time in a half if the business is open and they have to work, in addition to 8 hours of holiday pay. Salaried, get no time in a half. It's all part of a benefits package a business offers. A smaller business may have an issue granting the extra day, so maybe they get a little bonus for the holiday or something.

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TheTrustedMechanic Community Regular

TheTrustedMechanic

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My service advisors, who are salaried paid, work 5 days a week and will rotate a Saturday off if they want to. They also have have sick days and vacation days. If they take 2 days off in a week and don't have any sick time or vacaction time, they need to make up the day the following week or lose that day in their pay, even though they are on salary. This is a policy that they are presented at time of employment.

 

Joe,

I don't think your plan for when they take an extra day off is legal or fair, regardless of if it's in writing or was presented at time of employment. A salary is a promise of a minimum amount of pay for a job done, regardless of how few hours are worked. If they work an extra hour or two and 12 do they get extra pay? Do you value your service writers? Your pay plan does not show that your salary set up is for anyone's benefit but yours. I cant say it is unlawful, but as I understand wage law as it applies to salary, you can't use it as a maximum, it is the same as long pay regardless of the number of hours, up to the maximum in your agreement as long as they substantially perform the job for which their salary applies.

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  • Have you checked out Joe's Latest Blog?

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
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