Do holiday and vacation hours count toward 40-hour overtime threshold?

Q. Can we include holiday pay as time worked when calculating overtime, but not include vacation, sick, personal as time worked? For example, in one week, an employee works 35 hours, plus gets 8 hours of holiday pay. He would get paid 40 hours regular and 3 hours overtime. In another week, the employee works 35 hours + takes 8 hours vacation time. We would pay them 43 hours regular time. – Anonymous, New Jersey