QUERY: How does the employer compute overtime in a week with a holiday? With vacation?

Assuming there is no provision of a collective-bargaining agreement which provides otherwise, overtime need not be paid until the employee’s actual “hours worked” in the week exceed 40. Thus, an employee who is paid for 8 hours of holiday or vacation pay and works the remainder of the week (32 hours) is not entitled to overtime pay if called in for eight additional hours on Saturday. The employee must, however, be paid the regular rate for the Saturday hours. A number of employers voluntarily pay overtime in this situation but are not required to do so under the Fair Labor Standards Act (“FLSA”).