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WHAT'S NEW?
Clarifying Davis Bacon Holiday Pay
More and more federal wage determinations are listing applicable holidays on the wage determination. For many years contractor only paid workers when they actually worked those holidays. However, this has been addressed and clarified by the US Department of Labor in their Field Operations Handbook.
Field Operations Handbook Chapter 15, governing Davis Bacon federal prevailing wage requirements, states:
(b) If the applicable wage determination for a classification listed specifies paid holiday as a fringe benefit and an employee works any part of a week in which the holiday occurs, the employee must receive the entire holiday pay benefit, unless a different standard is provided in the applicable wage determination. However, if the employee is hired by the contractor after the holiday occurs in a particular week, he or she would not be entitled to the holiday benefit. For example, if New Year’s Day occurs on Tuesday, and the employee is hired on Thursday, the employee would not be entitled to the benefit.
So, if the wage determination lists Thanksgiving as an holiday and your employees worked Monday, Tuesday and Wednesday of that week and did not work on Thanksgiving, you would still have to pay the worker the applicable prevailing wage rate for Thanksgiving. If the employee actually worked on Thanksgiving, the worker would be entitled to double time. Regular pay for working the day and then the holiday pay on top of that.
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