It’s nearly Thanksgiving in the United States and what most of us consider the start of the holiday season with the holiday’s of Christmas and New Year’s rounding out the festivities. For many Americans, the holidays can be both a joyous time and a stressful time since it typically means more time with family, more social commitments, more eating, more drinking and more spending.
Employers shouldn’t downplay the impact that stress can have on employees in the workplace. Added stress can be a precursor to attendance issues, behavior concerns, and workplace safety incidents.
The holidays can also be a confusing time for employers with concerns about political correctness, budgetary constraints, liability, holiday pay, taxable income with regard to gifts and others.
Employers need to consider a host of topics as we approach the holiday season so be sure to check out this employer’s guide to the holidays.
Remember, all the information in this blog post is published in good faith and for general information purpose only. I am not an attorney, nor do I provide legal advice. The information provided is my personal opinion and not that of any organization, business, company, agency or other individuals. The author is not liable for any losses or damages related to actions or failure to act related to the content of this article. If you need specific legal advice, consult with an attorney who specializes in your subject matter. Any action you take upon the information you find on this website (www.hrraw.com), is strictly at your own risk.
Penny Horton | November 19, 2018
Holiday Days, Time Off and Holiday Pay
Its important employers understand the obligations they have under local, state and federal law when handling holiday pay. Some states such as Rhode Island require employers to recognize specific state holidays throughout the year. And while many employers shut down their operations on official holidays, many also choose to pay their employees for those days off. However, it’s important to know that isn’t required under the Fair Labor Standards Act (FLSA) since you only have to pay employees for time worked. Many employers have a practice of providing additional compensation for employees who work on holidays. And in situations where employees do perform work on holidays, those hours need to be counted for overtime calculations.
Terminology: Christmas vs Holiday
I’m probably dating myself here but I remember when there was a shift from companies typically referring to Christian holidays to making a concerted effort to be more inclusive and recognize other holiday celebrations. It was the dawn of “political correctness”. But what really seemed to happen was just a switch in saying Christmas to saying Holiday. It’s perfectly fine for companies to still celebrate Christmas and conduct things like company Christmas parties and have a Christmas lunch and put up Christmas trees. And in fact, if all you have done is substitute the word Holiday for Christmas and still only focus on Christmas related activities, I would propose calling it what it is. Simply using the word Holiday instead of Christmas isn’t creating a more inclusive culture and it surely isn’t fooling any of your employees who don’t celebrate Christmas into thinking you are being more inclusive. The actual point should be to recognize that there are other important religious and cultural celebrations around this time of year (think Kwanzaa, Chinese New Years, Hanukkah, etc.) and if you are truly trying to create a more diverse and inclusive culture, you should probably invest in recognizing and celebrating those other ones that are important to your employees too.
The important thing to remember is that you shouldn’t discriminate against someone on the basis of their ethnicity, religion, culture, etc. and you should never force an employee to participate in a celebration.
Holiday Parties
A Holiday party is something that needs to be thought through thoroughly before a company chooses to host one. While they can be a great amount of fun for attendees, they can also create a great amount of risk for an employer if not managed well.
When you mix a casual and relaxed environment that doesn’t seem like a work function with the potential stress of the Holiday season and alcohol, employees can be guilty of participating in uninhibited behavior that can lead to concerns of everything from intolerance to sexual harassment to drunk driving to aggressive behavior and more.
Companies can absolutely be liable for what happens during and immediately following a company party (holiday or not) so it’s important to weigh all the risks and before proceeding, make sure you have a solid plan for mitigating them.
Gifts and Tax Liability
The United States Internal Revenue Service (IRS) determines what is considered taxable wages and that includes all fringe benefits, such as gift cards, except those that are specifically excluded by a section of the Internal Revenue Code (IRC).
If under the IRC the perk is considered de minimis then it is not taxable to the employee. This includes things like occasional group meals, movie tickets, traditional birthday gifts, holiday gifts with a low fair market value (not cash or cash equivalent), flowers and occasional break treats like coffee and doughnuts.
So if you want to give a holiday turkey or ham to your employees, go ahead! But, be careful, if you provide a gift certificate to purchase that turkey or ham instead that is available to be used for general merchandise then the amount of that certificate could end up being taxable income. Be sure to consult your tax advisor for specific clarification beyond IRS guidance on De Minimis Fringe Benefits.
Employee Appreciation
The holidays are a perfect time to show your appreciation for your employees and they really can be fun, festive and engaging.
Employers just need to do a little preparation and planning to avoid some of the common pitfalls to ensure the celebrations all happen with success!
Reality Check
If you need help reviewing your company holiday plans or designing them, Who’s Your HR? can help!
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