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Joseph, Lawyer
Category: California Employment Law
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Experience:  Extensive experience representing employees and management
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We have a policy that employees (hourly) must use their vacation

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We have a policy that employees (hourly) must use their vacation time or without pay between Dec 26 to Jan 31 in which the company shuts down. This year, December 24 is on Monday and we will close as well. Can we not pay them for that day or they are entitled to get paid?
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Yes, as hourly employees, you are not required to compensate employees for any holidays, and are definitely not required to pay them for non-holiday days in which the company is shut down, so you are not required to pay them for December 24th when you're shut down.
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