Definition: Holiday pay is compensation for holidays, like Christmas Day, or other time not worked (like vacation) when a business may be closed or the employee is permitted to take time off from work. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays. These benefits are generally an arrangement between an employer and an employee or the employee's representative i.e. a union or other collective bargaining agent.
Also Known As: vacation pay, paid holidays
Examples: George was entitled to holiday pay from his employer for Memorial Day and Labor Day.
