Legal Question in Employment Law in California

Re: Salary reduction for ''unpaid'' holiday

Your employer's response sounds really fishy and is probably not justified. However, whether he can deduct your pay for days not worked depends on whether you are a salaried, exempt employee or an hourly, non-exempt employee.

If you are salaried, your pay cannot be reduced for working less then a full week. You should be paid the full salary regardless of the hours you work.

If you are an hourly employee, employers do not have to pay for hours you do not work, including holidays, unless it is the policy of the company to do so.

If you are salaried, tell your employer he cannot have it both ways. If he wishes to reduce your pay he runs the risk of losing your exempt status and will have to pay you overtime premiums for all hours you work over 8 hours a day or 40 hours a week, at one and a half times your hourly rate of pay on his "annualized basis".