(1) An employee who is designated as non-exempt under the Fair Labor Standards Act (FLSA) and who works on the day a holiday is observed shall be paid for all hours actually worked. In addition to the holiday benefit provided for in ARM 2.21.626, the employee shall receive either a paid day off at the regular rate or premium pay as described below, at management's discretion.

(a) If the holiday benefit is a paid day off to be taken at a later date, the employee shall receive pay at the regular rate for every hour worked on the holiday.

(b) If the holiday benefit is to be pay, but no day off, the employee shall receive premium pay (regular rate time 1 1/2) for every hour worked on the holiday.

(2) If an employee does not work a regular schedule and is called in to work on the holiday, the employee shall receive pay at the regular rate for every hour worked on the holiday.

(3) Hours worked on a holiday may result in more than 40 hours in a pay status during the workweek. An employee shall not receive both premium pay and overtime pay for the hours worked on a holiday. If the agency provides pay at the regular rate for hours worked on the holiday or paid time off on an hour-for-hour basis, the employee shall receive overtime or nonexempt compensatory time for the hours over 40 in a workweek, in compliance with the overtime and nonexempt compensatory time policy, ARM 2.21.1701 et seq. (Also found at policy 3-0210, Montana operations manual, volume III.)

(4) An employee who is exempt from the FLSA and who receives approval to work on the holiday will receive paid time off equivalent to the number of hours worked.

(5) Equivalent paid time off for work performed on a holiday may be taken at a later date upon request by the non-exempt employee and approval of the supervisor. When an employee requests to take the hours off and where the interest of the state requires the employee's attendance, the state's interest overrides the employee's.