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The "holiday" hours, if occurring on what would otherwise be a normal workday, should be considered in the same manner as "hours worked". Where this is particularly important is in the area of calculating overtime.

If an hourly employee is eligible for overtime at 1-1/2 times normal pay for overtime then this example will show the impact on pay: Base Rate = $10

OT Rate = $15 Using 54 hours worked example and holiday as "hours worked". OT paid for all time in excess of 40 "hours worked": 40 * Base Rate = $400; 14 * OT Rate = $210; Total Gross Pay = $610 Using 54 hours worked example and holiday NOT as "hours worked". OT paid for all time in excess of 40 "hours worked": 8 Holiday Hours * Base Rate = $80; 40 * base rate = $400; 6 * OT Rate = $90 Total Gross Pay $570.00 The difference is $40.00

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