Daycare Tax Tips

Are Holiday and/or Vacation Pay Required?

Here's what California labor law has to say

Here is the lowdown on holidays from the California Dept. of Industrial Relations:

> Employers are NOT required to observe any given holiday.

> If you do close for a holiday, you are NOT required to give employees a paid day off.

> When employees work on a holiday, you are NOT required to pay a premium wage, unless the employee is due overtime pay according to the normal overtime rules.

California employers are not required to offer paid (or unpaid) vacation time, either.

If you allow employees to accumulate vacation hours, be aware that earned vacation time is considered wages. Employees are entitled to cash out their vacation hours when leaving your employment, whether they quit or are terminated.

Child care providers with assistants should be clear when it comes to holiday and vacation policies. I recommend covering all the particulars in an employment agreement or job description document. When hiring, have employees sign a copy for your file. A number of useful and modifiable employee forms are included in The Redleaf Complete Forms Kit.

Last updated 08 November 2013

Posted on 2013-11-08 07:06:06