PAID Holidays: Paid Holidays are days for which an eligible employee receives a regular day's pay, but is not required to perform work. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise).This pamphlet is intended to provide Employers and Employees with general information about their employment rights and responsibilities in New York State. The Department of Consumer and Worker Protection (DCWP) created this overview of important City, State, and federal laws so you know your rights at work. Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek. Learn about holiday pay, how much to give workers, what to do if employees work or have time off, and how to create a holiday pay policy. 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. All full-time employees, including those on flexible or compressed work schedules, are entitled to an "in lieu of" holiday when a holiday falls on a nonworkday. Who's eligible for paid holidays?