Holiday pay calculation: On a holiday, earnings are computed as regular daily wage plus 1.5 times the regular rate for hours worked.

• A. Regular daily wage plus 1.5 times the regular rate for hours worked
• B. Regular daily wage only
• C. Regular wage times 1.5 for all hours
• D. Overtime rate for all hours

Answer: (A)

On a holiday, you pay the employee their regular daily wage for the day, and if they work any hours on that holiday, you add a premium of 1.5 times the regular rate for the hours actually worked. That means the total earnings for a holiday where work is performed equal regular daily wage plus 1.5 times the regular rate for each hour worked on that day. If no hours are worked, you still owe the regular daily wage as holiday pay.

This approach fits because it compensates for the time off with the base holiday pay, while also providing a premium when the employee puts in time on the holiday. The other options don’t align with this structure: paying only the regular daily wage omits the premium for hours worked; paying 1.5 times the rate for all hours would ignore the base daily wage for the holiday and overcount hours not worked; paying the overtime rate for all hours would misapply the premium and fail to ensure the base holiday pay is provided.