Is holiday pay required in the US? The short answer is no — there is no federal law requiring private employers to pay employees for holidays, whether they work or not. The Fair Labor Standards Act (FLSA) does not mandate holiday pay, premium rates for holiday work, or paid time off for holidays.
However, state laws, employment contracts, and company policies may create obligations. This guide covers the federal position, state-specific rules, and how to handle holiday pay as an employer.
This article is general information, not legal advice.
Key Takeaways
- No federal law requires private employers to pay for holidays
- Some states have specific holiday pay requirements
- Employment contracts and company policies can create binding obligations
- Federal employees have specific holiday pay rules under the FLSA
- The private sector follows whatever the employer’s policy states
Federal Law: No Requirement
The FLSA Position
The Fair Labor Standards Act does not require:
- Paid holidays
- Premium pay for holiday work
- Time off for holidays
- Compensation for holidays not worked
If an employer chooses to close on a holiday, there is no federal obligation to pay employees for that day.
Federal Employees
Federal employees follow different rules under the Federal Employees Pay Act:
- Paid holidays: 10 per year
- If a holiday falls on a Saturday: observed on the preceding Friday
- If a holiday falls on a Sunday: observed on the following Monday
- Federal employees receive holiday premium pay (double time) for required work on holidays
State Laws
Some states have specific provisions related to holiday pay:
States with Holiday Pay Requirements
| State | Requirement |
|---|---|
| California | No specific holiday pay law for private sector |
| New York | No specific holiday pay law for private sector |
| Massachusetts | No specific holiday pay law for private sector |
| Texas | No specific holiday pay law for private sector |
| Rhode Island | No specific holiday pay law for private sector |
| Connecticut | No specific holiday pay law for private sector |
| Oregon | No specific holiday pay law for private sector |
Most states follow the federal model — no private sector holiday pay requirement.
State Government Employees
Many states have specific holiday pay provisions for state government employees, even if private sector employees are not covered.
Employment Contracts
Express Contract Provisions
If your employment contract states that employees receive holiday pay, you must provide it. Examples:
- “Employees receive 10 paid holidays per year”
- “Time-and-a-half for hours worked on company holidays”
- “Christmas Day and New Year’s Day are paid company holidays”
Once stated in the contract, holiday pay becomes a binding obligation.
Collective Bargaining Agreements
Union contracts frequently include holiday pay provisions. These are legally binding and must be followed.
Implied Contracts
Even without an express contract, holiday pay policies can create implied obligations:
- If you’ve consistently paid for holidays for years, stopping may be a breach
- Employee handbooks that promise holiday pay may be enforceable
- State law may treat written policies as contractual obligations
Company Policy
What Your Policy Says Matters
If your company has a written holiday pay policy, follow it. Inconsistent application creates legal exposure:
- If the policy says “all federal holidays paid,” pay for all federal holidays
- If the policy says “10 paid holidays,” provide 10 paid holidays
- If the policy says “holiday pay at time-and-a-half,” pay that rate
Changing the Policy
You can generally change a holiday pay policy with proper notice, but:
- Check state law on notice requirements
- Provide reasonable advance notice
- Apply changes prospectively, not retroactively
- Consider whether the policy has become a contractual obligation
Holiday Pay for Different Worker Types
Full-Time Employees
Full-time employees are typically entitled to holiday pay if the company policy provides it. The pay is based on their regular rate.
Part-Time Employees
Part-time employees may be entitled to holiday pay on a pro-rata basis, depending on the company policy.
Temporary Employees
Temporary employees are generally not entitled to holiday pay unless the staffing agency or employer’s policy provides it.
Exempt vs Non-Exempt
- Exempt employees: Receive their full salary regardless of holidays
- Non-exempt employees: May not be paid for holidays not worked unless the policy provides it
Common Mistakes
Assuming Federal Law Requires Holiday Pay
Many employers believe they must pay for holidays. They do not — unless a contract or policy creates the obligation.
Not Following Your Own Policy
If your handbook says “10 paid holidays,” you must provide them. Inconsistency creates legal claims.
Paying Some Employees and Not Others
Discriminatory application of holiday pay policies can create legal exposure. Apply policies consistently.
Not Documenting the Policy
If you don’t have a written policy, disputes about holiday pay become he-said-she-said situations. Document your policy clearly.
Frequently Asked Questions
Is there a federal law requiring holiday pay?
No. The FLSA does not require private employers to pay for holidays or provide premium pay for holiday work.
Can I refuse to pay employees for a holiday I close the business?
Yes, if you have no contract or policy requiring it. However, if you have a policy promising holiday pay, you must follow it.
Do I have to pay extra for employees who work on holidays?
No federal law requires premium pay for holiday work. However, your contract, collective bargaining agreement, or company policy may require it.
Can an employee sue for denied holiday pay?
Yes. If a contract or policy promises holiday pay and you fail to provide it, the employee may have a breach of contract claim.
Does California require holiday pay?
No. California has no specific law requiring private employers to provide holiday pay. The general FLSA rules apply.