Floating Holiday

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Companies can do many things to make employees feel that they are valued. In the quest to attract and keep stellar employees, companies showcase what they’ve got in store for them. A generous mix of retirement plans, paid time off, leaves, health benefits, and dental benefits are some examples. Some companies also have what is called a floating holiday. Let’s find out more about it.  

What is a floating holiday? 

A floating holiday is a type of benefit provided by employers. It is a paid day off that an employee can take whenever they want. A floating holiday is independent of the employer’s roster of paid holidays and is not subtracted from an employee’s paid time off (PTO) and other vacation or sick days. 

Are organizations required to offer a floating holiday?

No, a floating holiday is not a requirement for organizations. There is no federal law or anything in the Fair Labor Standards Act (FLSA) that requires employers to give floating holidays. This benefit is solely at the discretion of the organization. 

What are the benefits of having a floating holiday? 

It is no secret that work-life balance empowers employees. A floating holiday provides employees with an opportunity for flexibility and accommodates a plethora of diverse needs that employees have. It offers extra time that an employee can take to spend however they choose.  

For example, employees can use a floating holiday to celebrate religious holidays that are not part of the organization’s paid holiday schedule. Having family and friends over for a birthday dinner? How about a special event at a child’s school? Do you need to take a day off for a mental health break? A floating holiday can be used for any of these reasons and more. The bottom line is, it is up to the employee to decide the reason. 

Giving a floating holiday can make employees feel valued, improve employee satisfaction, and boost employee engagement. 

I am an employer and I am thinking of giving employees a floating holiday as a benefit. What are some things that I must consider? 

Just like any company requirement, benefit, and guideline, a floating holiday should be established through a written policy. In creating a floating holiday policy, you should be able to answer the following questions: 

The floating holiday policy must be clear and objective to avoid confusion. It must also be included in the employee handbook for reference. 

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