These are hourly non-exempt employees.....

Please help me clarify something. Due to the Labor Day holiday our office was closed. One of the benefits of employment is that on holidays that we are closed our employees are granted time off with pay. I have an employee who worked 33.25 Reg hours and wants to claim the holiday pay as 8 hours therefore granting her 1.25 overtime hours. She is not eligible for overtime hours because she only worked 33.25 hours CORRECT????

Also, I have a LPN who we use to "fill-in" as needed. She is not a contract employee as she is on our payroll. Is she eligible for the holiday pay as she was "filling-in" that week for an employee?

Overtime is based on hours worked, not hours paid. So, she will need to work 40 hours before getting overtime. In the case of a holiday where you give time off with pay, she may end up getting 40 hours regular pay.

As far as the fill-in is concerned, it's your call. There's no law that mandates that extra pay. In fact, I have found that most temporaries don't receive holiday pay when they work for a temp firm, even when the employer they are assigned to gives it to their regular staff.

Let me know if you have any other questions.