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Is Holiday Pay Required by Law?

When holidays roll around, employers start thinking about how much to pay their employees and whether holiday pay is mandatory at all.

Wondering what paid time off costs? Our free time off payout calculator can help.

The Federally Recognized Holidays

  • New Year’s Day
  • Birthday of Martin Luther King, Jr.
  • Washington’s Birthday
  • Memorial Day
  • Independence Day (4th of July)
  • Labor Day
  • Columbus Day
  • Veterans Day
  • Thanksgiving Day
  • Christmas Day

Many companies offer 5 to 10 of these holidays paid per year. But the custom has left many employers unclear on whether holiday pay is actually a requirement or just a preference.

Holiday Pay Is Not Mandatory

It is a common misconception that the Federal government requires businesses to pay employees extra for holidays. Besides Rhode Island and Massachusetts, there aren’t any state or Federal laws requiring private employers to pay employees extra for working on a holidays, nor is there any law requiring employers to give employees paid time off for holidays. Federal employees, however, do get paid holidays.

Many employers offer time and a half as incentive to work on holidays but that’s just a custom, not a law.

Paid Holidays Do Not Factor In to Overtime Calculations

An employee can earn holiday pay and overtime in the same week only if the employee spends more than 40 hours doing actual “work”. (In California, overtime is paid by day.) As an example, let’s say the employee puts in 36 hours during a holiday week and gets 8 hours holiday pay. That holiday pay does not figure into the overtime calculation. The payroll would look like this: 36 “regular” hours and 8 “holiday” hours at the the regular rate. This would not be 40 hours regular and 4 hours of overtime.

Other types of non-working pay include sick, vacation, bereavement, jury duty, ect., which are treated similarly with regard to overtime.

If you are ready to give up the hassle of overtime and accrual calculations, let do the job for you! We would be happy to help you set up a trial account and show you how easy it can be to track holiday, vacation, and overtime.

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  1. Mira Porter
    Mira Porter September 27, 2019

    Not looking for extra pay for holidays.
    An employer refuses to pay any amount, not even regular pay, to employees working on a holiday. Is that legal?

    • Lindsay Sommers
      Lindsay Sommers October 3, 2019

      The FLSA requires employers to pay employees for all hours worked. Your employer needs to pay you for all hours worked with any overtime you’ve earned.

      • Corazon
        Corazon September 8, 2020

        Hi, do private employment requires to pay holiday pay?

        • Lindsay Sommers
          Lindsay Sommers September 11, 2020

          If you’re located in the United States, there aren’t laws requiring any employers to give their employees holiday pay.

          • Mary
            Mary September 27, 2020

            If some employees get holiday pay and the day off but others work the holiday and don’t get the holiday pay is that legal

          • Lindsay Sommers
            Lindsay Sommers September 30, 2020

            Holiday pay is up to the discretion of your employer and it’s not federally mandated. Most likely, it’s completely legal. You may want to consult with your HR department if you have questions.

          • Jessica A
            Jessica A November 11, 2020

            I live in Rhode Island but have never received holiday pay even though I’ve worked on Veterans Day. Is this legal?

          • Lindsay Sommers
            Lindsay Sommers November 12, 2020

            Based on my knowledge, you should have received 1.5x pay on the holiday. However, you need to find out if Veterans Day is considered a “holiday”, because there’s a chance that Veterans Day isn’t technically considered a paid holiday in Rhode Island. I would suggest that you speak with your local labor board or speak with an HR representative.

        • Neelam Naidu
          Neelam Naidu July 24, 2021

          So the company I work did not pay me for July 4th saying that it was on Sunday and I didn’t work on that day,to get holiday pay I have to be working but if it’s my day off than I don’t get holiday pay

          • Lindsay Sommers
            Lindsay Sommers July 27, 2021

            Hi Neelam. If not federally regulated, your employer is allowed to set up their own holiday pay policy. Some employers choose to give their employees holiday pay, even when they don’t work on a holiday. For example, you may get Christmas Day off and may get paid for that as well, even if you aren’t technically working. On the other hand, some employers may give you Christmas Day off, but won’t pay you for that day– you just won’t get penalized for your absence. In your case, it may be outlined in your policy whether or not you’re paid for holiday time. I suggest that you check with your HR department or supervisor.

    • Jen Prenier
      Jen Prenier November 19, 2019

      If your salaried, they don’t have to pay anything extra. If you are hourly then it is illegal for them not to pay for hours worked no matter what day of the year it is.

      • Michael Ippolito
        Michael Ippolito June 9, 2020

        This is an old article but it came up in a Google search so I wanted to make sure that people were aware Rhode Island has a mandatory holiday over time law. It appears to be the only one in the US that requires time and a half for holidays regardless of hours worked or part-time / full-time status.

          • Celina w
            Celina w September 15, 2020

            I have a question. I worked a holiday for exactly 8.63 hours yet my company only paid me for 7.33 . They said they could only pay me this amount of hours for time and a half because it’s company policy . Can company’s alter your work time pay yet make you work normal hours ??

          • Lindsay Sommers
            Lindsay Sommers September 30, 2020

            Hi Celina. Your employer is legally supposed to pay you properly for any hours that you work (meaning, you should get paid at least minimum wage with overtime for any hours worked). If your employers weren’t compliant with FLSA guidelines, I suggest that you speak with your HR department to get this handled.

        • Tina Bonanno
          Tina Bonanno June 25, 2020

          Just asking Do u have a link that says that a RI private employer has to pay time and a half for a holiday for a PT / Summer employee?

    • Richard A Kasper
      Richard A Kasper October 4, 2020

      Only cheap-ass companies don’t pay for federal holidays.

  2. Jane Doe
    Jane Doe November 24, 2019

    I work for a private for profit organization. I was told they don’t pay holiday pay which is fine…but SOME get paid holiday pay (they have been there since the open and are “grandfathered” in ) (grandfathered to WHAT??). Is that legal? Can a corporation decide who gets paid and who doesn’t?

    • Lindsay Sommers
      Lindsay Sommers November 27, 2019

      Technically the FLSA does not have regulations regarding Holiday Pay, therefore, choosing to pay employees holiday pay is entirely up to the agreement from your employer. I would suggest speaking with your supervisor if you have concerns.

      • B
        B November 30, 2019

        I thought there used to be laws in place that did require holiday pay, but like many laws it had a time limit on it and wasn’t renewed. Yes? No?

        • Lindsay Sommers
          Lindsay Sommers December 2, 2019

          The Fair Labor Standards Act (FLSA) does not have any requirement for holiday or vacation pay– that is an agreement between the employee and employer. If an employee works a holiday, it’s seen in the federal government’s eyes as a normal day. There are only certain situations where an employee has holiday pay protections. According to the FLSA, an employee may get holiday benefits when they are: “On a government contract to which the labor standards of the McNamara O’Hara Service Contract Act (SCA) apply, holiday and/or vacation fringe benefit requirements are stated in the SCA wage determinations in contracts that exceed $2,500. Or on a government contract to which the labor standards of the Davis-Bacon and Related Acts apply, holiday pay and/or vacation pay is required for specific classifications of workers only if the Davis-Bacon wage determination in the covered contract specifies such requirements for workers employed in those classifications.”

          • Rock
            Rock May 30, 2020

            Can an employer change who he pays holiday to without notice to employees? It was a mandatory day off.

          • Lindsay Sommers
            Lindsay Sommers June 2, 2020

            Holiday pay isn’t FLSA regulated, so an employer typically can change their policies whenever they want to. But, I will say that some states have rules for employers regarding when they must notify their employees of any changes. In CA, for instance, employers must give employees 90 days notice if they’re requiring employees to take vacation time. Ultimately, you will want to check with your state’s labor board to see if there are any rules against this practice.

  3. Jesus Gonzales
    Jesus Gonzales December 6, 2019

    If I worked a Holiday & I get $12.50/HR how much should I get paid if I got paid Holiday Pay???? I received the same hourly pay $12.50 to be away from my family…. Why isn’t there a law requiring Employers to pay there Employee’s for there time away from there family on Holidays that they should be spent with there loved ones????

    • Lindsay Sommers
      Lindsay Sommers December 6, 2019

      Hi Jesus, I see your concerns, but there are no laws requiring employers to pay employees holiday pay. In fact, the federal government does not have any laws for vacation time, holiday time, or sick time. That’s usually dependent on your state’s policy or is an agreement upon an employer and employee. Getting holiday pay is typically a perk.

    • Liz
      Liz December 10, 2019

      If you’re not working the holiday you just get paid your normal wage an hour if you worked on the day then that’s up to your business. Not everyone does time in a half or double time on a holiday. Heck soon that won’t even exist anymore

  4. Sia
    Sia December 10, 2019

    An employee works Fri-Sun, 12 hours each day (36 hrs total) as her regular schedule. A holiday lands on a Thursday – does the employee get compensated for the holiday although she was never scheduled to work that day?

    • Lindsay Sommers
      Lindsay Sommers December 11, 2019

      The federal law does not require employers to compensate employees with holiday pay. If this employee is hourly and doesn’t get holiday pay, then you only have to pay the employee for the hours they worked (following federal minimum wage and overtime rules). If you have a company policy where you pay employees for holidays even when they’re not working, then you should compensate the employee accordingly.

      • Alicia J Basham
        Alicia J Basham December 23, 2019

        My employer pays only the general manager and assistant manager for holiday pay, yet no one else, even other managers. Is this legal?

    • Serene Nassah
      Serene Nassah January 12, 2021

      Hi! I work part-time retail and my manager called me on Christmas Eve frantically asking if I could come in because it was so busy. He said it would be time and a half instead of regular pay. I only went in and worked the 6 hours because of the time and a half. Well, I just received my pay and was only paid the regular rate for that day. When I contacted the manager, he said he made a mistake and the Christmas Eve rate was not time and a half. I only worked that day because of the extra $30 I was promised! I am really upset about this and feel they are obligated to pay me time and a half for that day, whether the manager made a mistake or not. Am I right?

      • Lindsay Sommers
        Lindsay Sommers January 12, 2021

        Hi Serene, I would suggest that you speak with an HR representative about this matter. Most of the time, a promised pay rate has to be written down in a contract; however, your case could be different depending on where your work is located.

        • Serene Nassah
          Serene Nassah January 23, 2021

          Thank you so much.

  5. Keith
    Keith December 11, 2019

    If I am already into my overtime pay (over 40 hrs) and work a holiday for which I receive holiday pay (time and a half), does that mean I will get triple pay for that holiday? Or is it gonna be no different then if I was just working a regular day because I was already on overtime pay (over 40 hrs at time and a half) for that day any way?

    • Lindsay Sommers
      Lindsay Sommers December 16, 2019

      Hi Keith, that will actually be entirely up to your work policy and your employer. You may want to ask your supervisor or HR department to clear this up for you

  6. Joanna
    Joanna December 24, 2019

    Does time and a half fall into the following day if you work graveyard?

    • Lindsay Sommers
      Lindsay Sommers December 24, 2019

      This will actually be entirely dependent on when your workweek and workdays start and end. Your employer or HR department would know more about your specific policy.

  7. Payrick
    Payrick December 31, 2019

    My kids work for a company that survives on federally funded money. Can they not contest the holiday pay they will not receive? Just overtime?

    • Lindsay Sommers
      Lindsay Sommers January 7, 2020

      Holiday pay is not required by law, therefore they cannot necessarily contest to the fact that they’re not getting holiday pay. The law solely requires employers to pay employees at least minimum wage and proper overtime.

  8. Koreen
    Koreen January 13, 2020

    When a private business is going on their vacation do they have to still pay the employees

    • Lindsay Sommers
      Lindsay Sommers January 14, 2020

      That would be entirely up to the agreement from the employee and employer. Some businesses pay their employees, even when they are not working; others do not follow the same guidelines.

  9. Trina Webb
    Trina Webb January 29, 2020

    I am a public employee (I work for the Courts) and I know we play by different rules when it comes to federal holidays and pay. Our county commissioners are making an amendment to our county policy that will deny holiday pay to any employee (full time and on active status) that takes a vacation day before or after the holiday. Is this permissible under State of Ohio law? I can find where public employees are entitled to federal holiday pay and the list of holidays for which they are to be paid. But I cannot find anything that allows for restrictions or exceptions to this rule. Our county employees are in a state of panic (of course, we are so spoiled 🙂 ) and have turned to me for answers and I am not able to find anything definitive. Please help! Thanks!

    • timesheets_blog
      timesheets_blog February 5, 2020

      This would be a good question for a labor attorney in your state. Since the state has access to lawyers, it’s a pretty good bet they asked first, but worth verifying anyway.

  10. Ryan H
    Ryan H March 6, 2020

    If the company you’re employed with, had an employee handbook defining the specific holidays that they say “these are recognized as paid holidays”, does that bind them to pay holiday pay for the days listed in thier handbook?

    • Lindsay Sommers
      Lindsay Sommers March 18, 2020

      Holiday pay is dependent on how your employer defines holiday pay and what specific terms they offered. I would suggest that you speak with your HR representative to clear things up. If it turns out that your employer breached your handbook/contract, then you might be entitled to submitting a wage violation.

  11. Stacy Murphy
    Stacy Murphy May 22, 2020

    We have a private owned commercial cleaning company in Louisiana and if our employees have to work on a holiday they are paid time and half. My full time employees are requesting holiday pay even if the building they clean is closed on the holiday. Is this required of my business to pay straight time even if they are not working on actual holiday day??

    • Lindsay Sommers
      Lindsay Sommers May 22, 2020

      Employers are not required by law to provide holiday pay for employees. In fact, the FLSA only requires that you pay your employees for the hours they work along with any overtime they earned. If you have concerns about your company time off policies, I suggest speaking with an HR professional

  12. Marshall Childs
    Marshall Childs May 27, 2020

    I’m required to to work 32 hours to get my insurance and benefits we had an 8-hour holiday pay and the day off. I went to work and my boss tells me that in order for me to have my benefits I need to make up the hours that they credited me for holiday pay in order for me to keep my insurance and benefits. The eight hours they’re paying me for not coming into work why does this not count towards my insurance?

    • Lindsay Sommers
      Lindsay Sommers May 28, 2020

      I suggest that you speak with your HR department or with an HR professional about your situation. They’ll be the best people to speak with about this.

  13. Netty
    Netty June 12, 2020

    So based on previous questions, you’re saying that private companies can do whatever suits them at any given time without consideration for workers and there is legally nothing the workers can do about it? Well, unless they decide to leave the job? If that’s the case when will it end? Private companies (for the most part) treat this workers as numbers and because of that mind set becomes revolving doors with no consideration for the workers! It’s really sad that we do not have a ground to back us unless we are unionized ( which is not a luxury for all). Please advise.

    • Lindsay Sommers
      Lindsay Sommers June 18, 2020

      Hi Netty, yes. Since holiday pay is not regulated by the federal or state governments (unless you’re in MA or RI), an employer has the right to choose what holidays employees have off and if they will earn any sort of extra pay on holidays. I’m not sure what state you reside in, but most states provide protections for employees so employers can’t do whatever they please at any given time (in order to stay compliant with state law). And yes, you’re right– private sector employees have the right to join unions and negotiate for wages and working conditions. Overall, and employer typically has the right to do what he/she pleases as long as he/she is compliant with state law. If you need advice about moving forward, I suggest that you speak with an HR representative about the actions you can take.

      • Sharon Ferullo
        Sharon Ferullo May 24, 2021

        I live and work in Massachusetts. My employer pays full-time employees for certain federal holidays, including Memorial Day. I work part-time and am told that they don’t pay part-timers for those holidays. Is this legal in Massachusetts? (They do not have an HR person/dept.)

        • Lindsay Sommers
          Lindsay Sommers May 24, 2021

          Hi Sharon. Massachusetts law doesn’t require private employers to provide their employees with paid time off– it up to company policy. If you work in private industry, your employer can have different policies for part-time and full-time employees. If you work in a retail establishment, it might be a different story. Employees in certain retail establishments may get memorial day off along with other holidays. This rule only works for employers who have 7 employees or more.

  14. Katina
    Katina June 12, 2020

    My company is closed for the July 4th Holiday and my Boss and trying to make us come in to finish up some work. Do I have to go in even though the whole company is closed and other employees don’t have to come in to work?

    • Lindsay Sommers
      Lindsay Sommers June 17, 2020

      Holiday policies are up to employers, so an employer technically can do what he/she pleases.To be sure, I suggest speaking with your HR representative.

  15. Cheech
    Cheech June 18, 2020

    This year with the 4th of July falling on a Saturday, and being a salary employee, we are not getting a day off or extra pay. It is in our company handbook that we get paid for 8 holidays. Are they in the wrong here?

    • Lindsay Sommers
      Lindsay Sommers June 18, 2020

      In most cases, when a holiday falls on a Saturday or Sunday, the holiday usually is observed on Monday or Friday. For instance, since the 4th of July is on a Saturday, most employees get Friday off. I suggest that you speak with your HR department.

  16. June
    June June 27, 2020

    I live in Massachusetts I work Monday through friday. If a Holiday that is a paid holiday in my company hand book falls on a sat or sunday. Are they required to pay me for the holiday or give me an additional day off?

    • Lindsay Sommers
      Lindsay Sommers July 2, 2020

      Typically that would be a reserved holiday. If the holiday lands on a Saturday, you typically get Friday off. When the holiday lands on a Sunday, you typically get Monday off. Since holidays aren’t regulated by the federal government, this is actually up to your company’s policy. If your handbook states that you’re supposed to get a certain holiday off and it lands on a weekend, you’re generally supposed to get a day off and get paid for that day. You should check with your supervisor or HP rep about your company’s policy.

  17. Maria Marquez
    Maria Marquez July 5, 2020

    Hi my name is Maria Marquez I’m working at Flextronic company my schedule to work is 12 hours per day if the four off July felts in Saturday I’m not Get paid the holly day because the company dicey to observe it on July 3 and that is miy off day is that legal for employers to do that.

  18. Jan Wright
    Jan Wright July 6, 2020

    I work in Rhode Island 32 hours a week. I work Monday through Thursday 8 hours a day. I was told I would not get paid for Independence Day because I don’t work Fridays . Is this correct? It is a national holiday and thought it required being paid.l

    • Lindsay Sommers
      Lindsay Sommers July 10, 2020

      Employers aren’t required to pay employees for any holidays, nor are they required to give employees time off. Rhode island does require employers to pay their employees 1.5x when they work Sundays or holidays, but they don’t mention the necessity to pay employees for federal holidays. I recommend reaching out to your local labor board to clear this up.

  19. RSue
    RSue July 8, 2020

    My company pays time and 1/2 for any hours worked on a holiday. If I’m in overtime before the holiday and work the holiday can they choose to not pay me the holiday pay because I’m in overtime?

    • Lindsay Sommers
      Lindsay Sommers July 10, 2020

      As long as they’re paying you at least your state’s minimum wage, they can pay you at whatever rate they please. I’m not sure what state you’re in, so I’m nor sure if you have certain holiday protections; however, I will say that employers generally can pay employees at whatever rate they see fit.

  20. B Foit
    B Foit July 10, 2020

    I have hourly and salary workers. Since the 4th was on Saturday and our company did not observe it on Friday/Monday my hourly people are being paid for 8 hours (they are not required to work normally on a Saturday). Should my salary people also be paid 8 hours? They also are not required Saturday workers. This is one of the holidays in our company handbook that are listed as a paid holiday.

    • Lindsay Sommers
      Lindsay Sommers July 10, 2020

      Your salaried employees get paid the same amount per pay period, no matter how many hours they work. Therefore, you shouldn’t have to pay them extra for the day. However, I do want to note that your company handbooks states that they earn that day off, so you may have to compensate them with an extra day off since you didn’t give them a reserved holiday day off. I suggest speaking with your HR representative to best handle this.

  21. Tamara Fox
    Tamara Fox July 20, 2020

    I’ found this thread a bit late but I have a related question. Our organization (in Pennsylvania) has a policy that refuses holiday pay to any nonexempt employee who calls out sick the day before or after a holiday. Is this legal?

    • Lindsay Sommers
      Lindsay Sommers July 21, 2020

      The federal government doesn’t regulate holiday pay, and Pennsylvania doesn’t require employers to provide employees with holiday pay. Your employer must adhere to the minimum legal requirements set by federal and state law in addition to any contractual agreements. Therefore, holiday pay is up to the discretion of your employer.

  22. Ang
    Ang September 5, 2020

    I’m in CA and my company pays employees for holidays they do not work. Is this choice up to the company or is this something else?

    • Lindsay Sommers
      Lindsay Sommers September 11, 2020

      Hi Ang. Yes, this is entirely up to your company’s discretion. They have the choice to create a holiday policy based on their own preferences.

  23. Omar J
    Omar J October 6, 2020

    I work on a City Contract. They often take the day before with the holiday. Am I entitled to any compensation? I only get paid the 6 holidays. Also, 4th of July landed on Saturday, do I still get paid for the 3rd, we took that day off? This is in Illinois, Lake County.

    • Lindsay Sommers
      Lindsay Sommers October 7, 2020

      Hi Omar. Employers aren’t responsible for paying employees holiday pay under law, but holiday pay is entirely dependent on your employer’s policy. That being said, if your employer has a holiday policy and pays employees for holidays even when they land on saturdays, then you should be paid accordingly. I suggest that you speak with your supervisor or HR department to find out what your policy is.

  24. Crissp M
    Crissp M December 1, 2020

    Thank you for all this good info. My usual workweek is made up of four 9hr days and one 4 hour day on the weekend to total 40hrs. I typically work Tue – Sat, Mon off.

    On our paid holidays our time off defaults to 8hrs. I have to request that mine is updated to 9 as that is my typical work week. One of my colleagues is saying that by law they are only supposed to give me 8hrs for a holiday.

    I wanted to see if you were familiar with this scenario. If its the law or the company that makes this decision. Thanks appreciate your expertise!

    • Lindsay Sommers
      Lindsay Sommers December 10, 2020

      Hi, holiday pay is typically decided by the employer. In fact, there aren’t any federal laws that require employers to pay employees for holidays or pay them holiday pay when they’re working on a holiday. If I were you, I would suggest speaking with your employer or supervisor about this matter.

  25. Jen Karasik
    Jen Karasik February 11, 2021

    Hello, i work for a company and am considered full time with 32 hours. We get paid for holidays work with an additional day’s pay. I work 4 x 8 hour shifts (32 hours) less 1/2 hour break per shift (total 2 hours) so it equals 30 hours per week.
    When I worked on a holiday, I was only given 6 hours holiday pay even though I worked my usual 7.5.
    I was given the reasoning that a typical workweek for a full time employee is 5 days so the company took 30 and divided by 5 = 6 hours. Have you ever heard this?

    • Lindsay Sommers
      Lindsay Sommers February 11, 2021

      I personally have not heard of this particular method, but that doesn’t mean that it’s incorrect. Holiday pay isn’t required by law, so really this is up to your employer and how your company handbook explains this policy. For further assistance, I would suggest speaking with your HR team so they can clarify the process for you.

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