We have an employee back from FMLA absense. She is insiting that she is entiltled to pay for 2 holidays which occurred during her absence. Our employee manual states that employees are entitled to holiday pay if they worked the preceding day or were otherwise entitled to be paid for the preceding day. Since she was on unpaid leave, I say she's not entitled to holiday pay. Who's right? This is in Texas, if that makes a difference.

We have an employee back from FMLA absense. She is insiting that she is entiltled to pay for 2 holidays which occurred during her absence. Our employee manual states that employees are entitled to holiday pay if they worked the preceding day or were otherwise entitled to be paid for the preceding day. Since she was on unpaid leave, I say she's not entitled to holiday pay. Who's right? This is in Texas, if that makes a difference.

"FMLA does not require that employees on FMLA leave be allowed to accrue benefits or seniority."

Please visit this site for more info: http://www.dol.gov/elaws/esa/fmla/faq.asp

Based on the fact that she had to work the preceding day to get holiday pay pursuant to your handbook, it sounds like you are right. As for what Texas law says exactly, I don't know.