The FLSA does not require payment for time the employee does not work, including vacations and holidays. Nonexempt Employees: Up to eight (8) hours Holiday Pay based on the employee's standard hours and pay for hours worked.Arizona law does not require employees to receive paid vacation time or to be compensated for holidays. Holiday leave in Arizona is an area where state law does not mandate employers to provide paid time off for holidays. If you are in a job eligible for overtime, you are entitled to be paid time and a half your regular hourly rate for every hour you work over 40 in a workweek. An employer may not discriminate or subject a person to retaliation for asserting a minimum wage or earned paid sick leave claim, informing a. Most federal employers are required to provide holiday pay. There are also 2 states – Rhode Island and Massachusetts – that have special laws about holiday pay. Regardless, some employers will deal with legal holidays as overtime and provide premium pay for working on a holiday. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise).