Holiday Pay Law and Legal Definition

The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). These benefits are usually negotiated between an employer and an employee (or the employee's representative).

Some federal acts apply labor standards to a government contract, such as the McNamara O'Hara Service Contract Act (SCA), in which holiday and/or vacation fringe benefit requirements are stated in the SCA wage determinations in contracts that exceed $2,500.

On a government contract to which the labor standards of the Davis-Bacon and Related Acts apply, holiday pay and/or vacation pay is required for specific classifications of workers only if the Davis-Bacon wage determination in the covered contract specifies such requirements for workers employed in those classifications.