Do You Get Paid for Holidays While on Short-Term Disability?

Navigating employee benefits during leave raises questions about compensation, particularly whether holidays are paid while receiving short-term disability benefits. The answer depends on employment circumstances and benefit plan specifics.

Understanding Short-Term Disability Benefits

Short-term disability (STD) benefits replace income for employees temporarily unable to work due to a non-work-related illness, injury, or medical procedure. These benefits provide financial support during temporary incapacitation, for situations not covered by workers’ compensation. STD typically replaces 40% to 70% of pre-disability earnings.

The duration of STD benefits is limited, often from a few weeks to a maximum of one year, with many plans lasting three to six months. Benefits can be sourced through employer-sponsored plans, private insurance, or state-mandated programs. Eligibility generally requires medical documentation verifying inability to work.

Understanding Holiday Pay

Holiday pay is compensation for designated holidays when employees are typically not working. This ensures employees do not experience a reduction in regular income due to a holiday. Holiday pay is primarily a discretionary benefit offered by employers.

Federal law, specifically the Fair Labor Standards Act (FLSA), does not mandate paid holidays for private employers. However, many employers offer paid holidays as part of their overall benefits package to attract and retain talent. Eligibility often depends on company policy, sometimes requiring active employment status or working the day before and after the holiday.

Factors Affecting Holiday Pay During Short-Term Disability

Whether an individual receives holiday pay while on short-term disability largely depends on several interconnected factors, with employer policy being the most significant determinant. Companies establish their own rules regarding compensation during periods of leave, and these policies dictate if and how holidays are treated.

The specific terms of the short-term disability plan also play a considerable role. If the STD benefit is paid through a third-party insurer, holiday pay might be handled separately or integrated into the disability calculation, which replaces a percentage of lost wages. Some plans might consider holidays as non-workdays and therefore not explicitly include them in the benefit calculation, while others may have clauses addressing this scenario.

For unionized employees, collective bargaining agreements (CBAs) are crucial documents that often contain detailed clauses regarding holiday pay and disability benefits. These agreements can establish specific entitlements that differ from general company policy. Employment contracts, if applicable, may also outline provisions for holiday pay during periods of leave.

Determining Your Eligibility

To determine your eligibility for holiday pay while on short-term disability, consult official documentation and human resources personnel. Your company handbook or policy documents are primary sources of information, detailing employee benefits, including holiday pay and short-term disability plans.

Your human resources department can provide clarification on company policies and the specifics of your short-term disability plan. They can explain how holidays are treated within the context of your leave and benefit payments. If you are a member of a union, your union representative can also offer guidance, as collective bargaining agreements often contain specific provisions regarding these types of benefits.