August 7, 1997

To: All UPS Agencies
From: Ronald S. Mitchell, Director
Subject: Paydays that fall on a State Holiday

Questions have arisen regarding the handling of direct deposits for paydays that fall on Friday in conjunction with a state approved (or declared) holiday that is not a Federal Reserve Bank holiday. OSUP procedurally changes a Friday payday only if that payday falls on a Federal Reserve Bank holiday (ex. Independence Day). Acadiana Day (Friday after Thanksgiving) and Good Friday are state holiday examples where a payday will not be changed. Most financial institutions will be open on these state holidays; however some financial institutions, particularly credit unions, may observe these non-Federal Reserve Bank holidays.

OSUP cannot guarantee that those financial institutions that observe non-Federal Reserve Bank holidays will make funds available to employees with direct deposits on the payday/holiday. In fact, some of those institutions may not make the funds available until the Monday after payday.

Agencies should notify all employees that the pay date will not change for holidays that are not Federal Reserve Bank holidays. Each employee is responsible for contacting his/her financial institution to learn its respective policy on the availability of funds on payday holidays. After contacting his/her financial institution, each employee should evaluate his or her available alternatives. For some employees, contacting management at the financial institution, changing financial institutions, or changing due dates on pending payment obligations may be options. If you have any questions concerning this information, please contact Andrea Hubbard at (504) 342-5337.


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