The FLSA does not require overtime compensation for time not actually worked, such as holidays. In this case, the employee worked only 35.35 hours and is not entitled to overtime pay for the holiday, unless you have entered into an employment agreement to that effect.

For resources related to our guidance, please see:

• 29 CFR 778.102 (“The Act does not generally require, however, that an employee be paid overtime compensation for hours in excess of eight per day, or for work on Saturdays, Sundays, holidays or regular days of rest. If no more than the maximum number of hours prescribed in the Act are actually worked in the workweek, overtime compensation pursuant to section 7(a) need not be paid. Nothing in the Act, however, will relieve an employer of any obligation he may have assumed by contract or of any obligation imposed by other Federal or State law to limit overtime hours of work or to pay premium rates for work in excess of a daily standard or for work on Saturdays, Sundays, holidays, or other periods outside of or in excess of the normal or regular workweek or workday.”)

• U.S. Department of Labor, Questions and Answers About the Fair Labor Standards Act (FLSA) (“The FLSA does not require payment for time not worked, such as vacations, sick leave or holidays (Federal or otherwise). These benefits are matters of agreement between an employer and an employee (or the employee's representative).”)