Under California law, extra pay for working on a holiday is not required unless the employee has already worked 40 hours that week. Neither federal law, nor California law, requires employers to give holiday pay or paid holidays.Labor Code Section 227.3. Because paid vacation benefits are considered wages, such pay must be included in the employee's final paycheck. 11. California Labor laws do not require that companies offer paid sick time, vacation pay or PTO, nor does it require holiday pay. California law does not require employers in the state to offer their employees paid holidays off, nor do they have to offer holiday pay or overtime pay. California employers are not required to pay for time off for holidays, nor are they required to pay additional wages if employees work on holidays. Unfortunately, California labor laws do not require employers to give employees vacation pay. It's up to each employer whether to offer vacation pay at all. As previously noted, employers are not required to pay overtime for working on holidays.