What Holidays Should Be in Your PTO Policy?
- The Big National Holidays: Many California companies stick to the major federal holidays to meet employee expectations. Offering these holidays aligns with employee expectations and boosts hiring appeal:
- New Year’s Day (January 1)
- Memorial Day (Last Monday in May)
- Independence Day (July 4)
- Labor Day (First Monday in September)
- Thanksgiving (Fourth Thursday in November)
- Christmas Day (December 25)
- Additional Observed Holidays: Some companies go a step further by adding days that appeal to a diverse workforce and acknowledge important cultural milestones:
- Martin Luther King Jr. Day (Third Monday in January)
- Presidents’ Day (Third Monday in February)
- Juneteenth (June 19)
- Veterans Day (November 11)
Floating Holidays for Flexibility
Navigating Compliance with California PTO Policies
California PTO Guidelines
- Outline Eligibility and Pay Rates Clearly: Document eligibility rules in your employee handbook, and make sure everyone’s on the same page. If holiday pay is part of the policy, apply it consistently and include clear guidelines.
- Sick Leave Protections: Be mindful of policies that could unintentionally penalize employees for using legally protected sick leave. For instance, requiring work the day before or after a holiday to qualify for holiday pay may conflict with state protections. If an employee needs a sick day, they shouldn’t miss out on holiday pay as a result.
Preventing Discrimination Issues
Best Practices for a Balanced PTO Policy
A compliant, clear PTO policy can work wonders for employee satisfaction while safeguarding your business. Here are some tips to consider:
- Define Core and Optional Holidays: Set core holidays like New Year’s and Thanksgiving, with optional floating holidays for flexibility.
- Listen to Employee Feedback: Survey your team on valued holidays to create an inclusive schedule.
- Set Clear Rules: Outline holiday pay rules and ensure compliance with sick leave protections.
- Review Competitors’ PTO Policies: Stay competitive by comparing PTO offerings. It might be worth expanding your own offerings to keep top talent happy.
- Review and Communicate Policy Changes: Review policies annually, keeping your team informed of any changes.
Wrapping It Up
Building a holiday PTO policy that supports both your team’s needs and your business goals isn’t just about picking dates to close. It’s about creating a work environment where employees feel valued and supported. Offering a balanced mix of core holidays and flexible options like floating holidays makes a meaningful difference in morale and retention.
Whether you’re a startup trying to attract new talent or an established business working to keep your valued employees, a well-structured PTO policy is a strong asset.
Stay informed and get expert guidance when needed. Allevity is here to help—call us at 530/345-2486 to explore our service levels and see how we can support your PTO policy.