UNFAIR LADOR AND STANDARDS ACT
It has come to my attention that the Fair Labor Standards Act includes wording that allows employers to substitute holiday pay for overtime pay. Specifically, 29 U.S.C. Chapter 8 sub-section 207 paragraph 7(h)(2). It states:
(2) Extra compensation paid as described in paragraphs (5), (6), and (7) of subsection (e) shall be creditable to overtime compensation payable pursuant to this section.
Employers are not required to make this substitution, but they can and do. Working holidays is a sacrifice for most people with families and relationships. This creates an unfair situation. Please note this scenario under these conditions:
Mary works a normal week with 46 hours at $15.00 an hour and makes $735.00 gross.
Then she works a week with a holiday in it and works 46 hours with 8 of those hours worked on the holiday and makes $750.00 gross.
Now Hank works the same weeks at the same rate but works 48 hours the first week and he makes $780.00 gross.
The second week he works 48 hours with 8 of those hours worked on the holiday, and he makes $780.00 gross.
Mary receives a monetary benefit from working the holiday and Hank does not. Is that fair?
I have discussed this with the Wage and Hour Division of the Department of Labor, and they confirm that the specific company I was inquiring about has been investigated for this specific complaint and found to be in compliance.
I propose making a change. Adding the word “not” between “shall” and “be” would correct this.
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