How robust should our holiday policy be?

If your company chooses to recognize holidays, you want to be sure that you have a written policy which specifically details what the company intends to provide and to whom.

Courts and California analyze holiday pay policies as if they are contracts. Basic contract law states that if an agreement is vague or ambiguous, such that it is capable of more than one interpretation, it will be interpreted in the manner that favors the party that did NOT draft the agreement.

What this means is that if you have a holiday policy that doesn’t address all circumstances, the court or the California Labor Commissioner will rule in favor of your employees.