The holiday season can often present HR challenges to employers that can range from managing time-off requests to hosting holiday parties. Employers must comply with workplace policies, along with federal and state regulations to remain compliant while creating a positive environment.

Here are some common HR pitfalls and ideas on how to avoid them:

Inappropriate Gifts

Employers should remind employees to avoid gifts that violate workplace policies or may be perceived as offensive. Optional company activities during the Christmas season such as Secret Santa or White Elephant, can be fun, but it’s important to set gift guidelines in advance to prevent issues.

Overlooking Overtime Rules with Holiday Bonuses

The Fair Labor Standards Act (FLSA) explains that holiday bonuses or special rewards may occasionally be excluded from an employee’s regular pay when calculating overtime if it’s not based on hours worked, production, or efficiency.

Longevity bonuses can also be excluded, if they aren’t required contractually. Sign-on bonuses may count as gifts and be excluded, but if they’re part of an agreement or have rules for repayment (like clawback provisions), they usually need to be included in the regular pay rate.

It’s generally not required to pay nonexempt employees a premium for working on a holiday, unless the employee works more than 40 hours that week. However, some state laws may impose stricter requirements regardless of the number of hours worked. Consult with your legal advisors on local regulations to find out more. For more information on the recent overtime ruling, read our blog.

Disruptive Holiday Parties

Holiday parties can boost morale, but can also add liabilities to the employer, especially when alcohol is involved. To maintain a safe, low-risk environment, employers should limit alcohol consumption or even make work events alcohol-free, as well as provide plenty of food and transportation vouchers when appropriate.

Employers should monitor employee behavior and should not sponsor or attend after-parties, as these events can lead to misconduct and increase liability.

If employers host a party, potluck, or gathering during work hours, employees may be entitled to their regular pay during that time. Consider talking to your insurance provider about your coverage and potential liabilities that may surge due to the party.

Managing Time-Off Requests

Employees usually request more time off during the holiday season. Employers can manage this by setting deadlines for requests, blocking dates during peak production times, and using first-come, first-served or seniority-based systems, as adhered to the employee handbook or internal policies. These policies should also account for reasonable accommodations for religious practices, including flexible scheduling or unpaid time off, in compliance with federal and state laws.

Under federal law, the new religious accommodations ruling requires employers in the US to make reasonable adjustments for employees to participate in their religious beliefs without requiring them to prove their religious affiliation. For more information, please click here to read our blog on the recent religious accommodations ruling.

Absences During the Holidays

Employers may see an increase in absences during the holiday season. Having a policy in place that requires nonexempt employees to work the days before and after a holiday in order to receive holiday pay can help, but it’s important to be flexible to prevent the spread of illness within the workplace. Encouraging sick employees to stay home or work from home when possible, providing flu vaccines, and sharing best practices to prevent the spread of bacteria in the workplace are proactive steps to maintain a healthy environment.

Prepare for Inclement Weather

Employers should establish a clear internal policy specifying pay practices during inclement weather. Exempt employees generally must receive their full salary for any workday in which they perform work, while nonexempt employees are only paid for the hours they work. Employers should always confirm with their state laws and/or local regulations to ensure compliance. For more tips on preparing your workplace and workforce for inclement weather, read our blog.

In Conclusion

By addressing these potential pitfalls, employers can create a compliant and enjoyable holiday season for everyone. UniqueHR stays up to date with regulatory changes daily and we pass on our knowledge to our clients. If your business needs help staying informed on the latest updates, contact UniqueHR for a free consultation.