Holiday Closures and the Fine Art of Keeping Things Jolly and Legal in California

Ah, December! For some companies, it’s a festive frenzy with employees running around like caffeinated elves. For others, it’s more of a “put on your fuzzy socks and hibernate” vibe. Many businesses shut down entirely, giving everyone time to recharge, but before you sign off for the holidays, let’s talk about some not-so-festive—but essential—considerations for holiday closures, especially in California.

Pay Considerations: To Pay or Not to Pay?

For non-exempt (hourly) employees, it’s pretty straightforward. Employers decide if they’ll pay during closures, or if the employee works on the holiday, whether there’s premium pay or an additional day off provided for working on the holiday. Pro tip: Spell it out in your handbook, so no one is left wondering.

Exempt (salaried) employees, on the other hand, are where things get a bit...sticky. To keep their exempt status under California law, these employees must be paid their full salary for any week in which they do any work. And yes, that includes replying to one “urgent” email from the boss.

Here’s the deal:

• If you close for less than a full workweek, you still have to pay exempt employees their full salary.
• If you close for the entire workweek (and they don’t so much as glance at their work email), you’re off the hook for their salary that week.
• But if they so much as log in to check one tiny thing? Boom. Full salary owed.

So, if you’re aiming for a total shutdown, make sure no work happens. Block emails, take back laptops, and confiscate phones if you must. (A Grinchy move? Maybe. But a legally sound one!)

Defining the Workweek: A Holiday Plot Twist

Your company’s definition of a “workweek” can make all the difference. Let’s say you want to close for Christmas through New Year’s, which this year, would include Wednesday, December 25 through Wednesday January 1. If your workweek is defined as Sunday through Saturday (which is the default for most employers), closing during this time means your exempt employees would still be owed their full salaries, as you will not be closed for an entire “workweek.” Rather, you will be closed for a seven-day period spanning between two separate workweeks.

Vacation Policies: Ho, Ho, Hold My PTO

Can you require employees to use vacation time during a holiday closure? Yes, you can—but do it right. Give them plenty of notice (according to the California DLSE, it must be at least 90 days advance notice), and include these details in your handbook. This not only keeps things above board but also helps reduce those giant PTO balances.

A couple of things to keep in mind:

• If someone’s out on a leave of absence, be cautious. For certain leaves (like pregnancy disability leave), you can’t require them to dip into vacation time.
• And under no circumstances should you force employees to use their mandatory paid sick leave. Nothing screams “holiday cheer” like a labor law violation.

A Final Toast to Getting It Right

Holiday closures can be a wonderful way to end the year on a high note—but only if you handle the logistics with care. Follow the rules, communicate clearly, and remember: a little planning now saves a lot of headaches later.

Here’s to a happy holiday season for your team! Cheers!