Do you have to be paid for Thanksgiving or Christmas, and is working a holiday worth extra pay? For most private-sector workers, federal law is silent on both. This guide explains what the law does and does not require, where holiday pay actually comes from and how it interacts with overtime.
The short answer
No federal law requires private employers to give employees paid holidays, and none requires extra pay for working on a holiday. The Fair Labor Standards Act (FLSA) sets minimum wage and overtime rules for hours actually worked. The Department of Labor says the FLSA does not require payment for time not worked, including holidays, vacations and sick days, and it does not require premium pay for work on weekends or holidays. Whether you get a paid day off on Thanksgiving, or time and a half for working it, depends on your employer's policy, your employment agreement, a union contract and, in some situations, state or local law.
Federal holidays do not apply to private employers
The list of eleven federal holidays is set for federal employees under 5 U.S.C. 6103: New Year's Day, Martin Luther King Jr. Day, Washington's Birthday (Presidents Day), Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day (also observed as Indigenous Peoples' Day in many places), Veterans Day, Thanksgiving and Christmas Day. That list governs federal agencies. Banks, schools, courts and many private businesses close on some of these days, but a private employer is under no federal obligation to do so, or to pay employees for those days. The Business Days Calculator shows how these dates reduce working days in a given period.
What decides whether you are paid for a holiday
Where a holiday pay entitlement can come from
| Source | What it can provide | What to check |
|---|---|---|
| Employer policy or handbook | Paid holidays, eligibility rules, premium pay for working holidays | Whether the policy is written and whether it lists eligibility conditions |
| Employment contract or offer letter | Specific holidays, rate of pay | Any language promising paid holidays or holiday premiums |
| Union / collective bargaining agreement | Often detailed holiday pay and premium rules | The pay article and any seniority or attendance conditions |
| State or local law | Rare and narrow; may apply to certain industries or public employees | Your state labor department website |
| Public-sector rules | Public employers often follow statutes or personnel rules that set paid holidays | Agency personnel manual |
Common employer rules for holiday pay
- Eligibility: full-time employees are often covered, with part-time employees covered in proportion to their schedules or not covered at all.
- Waiting periods: some employers require 30, 60 or 90 days of service before an employee qualifies.
- Attendance conditions: some require you to work the scheduled day before and after the holiday to be paid for it.
- Hours paid: a paid holiday is usually your normal scheduled hours, for example 8 hours, not necessarily the hours you would have worked.
- Premium pay: working on a holiday might pay one and one-half times the regular rate, or double time, or just the regular rate plus a paid day off later.
- Floating holidays: some employers replace a fixed day with a day you choose.
None of these are legal requirements by themselves. They are conditions an employer sets, and they can be changed going forward, usually with notice, unless a contract says otherwise.
How holiday pay affects overtime
Overtime under the FLSA is based on hours actually worked over 40 in a workweek. Paid holiday time is not worked time, so it does not count toward the 40 hours. Payments for holidays not worked are also excluded from the regular rate. Under the federal law, premium pay for work on holidays can be handled in a specific way as well: where an employer pays at least one and one-half times the regular rate for hours worked on a holiday, the premium portion is not included in the regular rate and may be credited toward overtime the employer owes in the same workweek.
Three examples at a regular rate of $20.00 an hour show how this works.
- Paid holiday, not worked. Monday is a paid holiday (8 hours), and the employee works four 10-hour days, for 40 hours worked. The holiday hours are not hours worked, so there is no overtime. Pay is 8 × $20 = $160 for the holiday plus 40 × $20 = $800, or $960.00.
- Worked holiday at time and a half. The employee works the holiday for 8 hours at $30.00 and four other 8-hour days at $20.00, for 40 hours worked. There is no overtime. Pay is 8 × $30 + 32 × $20 = $240 + $640 = $880.00.
- Worked holiday plus overtime. The employee works 46 hours, including 8 holiday hours paid at $30.00. Straight time for all 46 hours is $920. The holiday premium is 8 × $10 = $80. Overtime premium owed on the 6 hours over 40 is 6 × $10 = $60. Because the holiday premium paid meets the 1.5 times threshold, the employer may credit the $80 against the $60, so no additional overtime premium is due and total pay is $920 + $80 = $1,000.00. Without the credit, total pay would be $1,060.00.
Check your own week with the Overtime Pay Calculator. To see how holiday and PTO hours differ from worked hours, read what counts as hours worked and how to calculate overtime pay.
Salaried and exempt employees
Exempt salaried employees are generally paid their full weekly salary for any week in which they perform work, so a holiday that falls within a week usually does not reduce their pay. Employers generally may not dock an exempt employee's salary because the business itself closed for the day. Non-exempt salaried employees are still entitled to overtime for hours over 40. See exempt vs. non-exempt employees for how the exemption tests work.
Holiday pay vs. PTO
Holiday pay is time off the employer designates for a specific date. PTO is time you accrue and choose when to use. Some employers require employees to use PTO on days the business closes, such as the week between Christmas and New Year's, but whether this is allowed and whether unused PTO is paid out at termination depends on the employer's policy and state law. Learn how accrual works in PTO accrual explained, and estimate your own balance with the PTO Calculator.
What to do if you were promised holiday pay and did not get it
- Find the policy, offer letter or contract that promised the pay, and note the date.
- Check the eligibility conditions such as waiting periods and attendance rules.
- Ask HR or payroll in writing to explain the calculation.
- If the promised pay was withheld, contact your state labor department, which often handles unpaid wage claims under state law.
- If you worked the holiday and were not paid for hours worked, that is a wage violation under federal law, and you can contact the Department of Labor's Wage and Hour Division.
Frequently Asked Questions
Is my employer required to pay me for holidays?
Not under federal law. The FLSA does not require pay for time not worked, including holidays. Paid holidays come from employer policy, contract, union agreements or, in narrow cases, state law.
Do I get time and a half for working on a holiday?
Not automatically. Federal law does not require premium pay for holiday work, but many employers offer it by policy or contract. Hours worked count toward overtime if you exceed 40 in the workweek.
Does a paid holiday count toward the 40 hours for overtime?
No. Overtime is based on hours actually worked. Paid time off for a holiday is not counted as hours worked.
Are part-time employees entitled to holiday pay?
Only if the employer's policy or contract provides it. Some employers prorate holiday pay by schedule and some exclude part-time employees.
Can my employer dock my salary when the business closes for a holiday?
For exempt salaried employees, employers generally may not deduct pay because the business closed. Policies for non-exempt employees depend on whether the time is paid under the employer's holiday policy.
Which holidays are federal holidays?
There are eleven: New Year's Day, Martin Luther King Jr. Day, Presidents Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving and Christmas Day. They apply to federal employees and are not required for private employers.
Related tools & guides
This guide is for general informational purposes only and is not legal, tax, or financial advice. Labor laws vary by state and change over time. Confirm your specific situation with your employer, HR department, or the U.S. Department of Labor.