Once November rolls around, many employees look forward to receiving much needed time off and holiday pay. However, what’s surprising is that in most states, holiday pay is not mandated by law for workers in the private sector.
Despite this, many private companies provide some form of holiday pay to their employees. This is because providing holiday benefits are often expected and used to reduce employee turnover and improve morale.
Do you know the laws in your state and jurisdiction? The only employers who are required to provide holiday pay are federal employers. There are also 2 states; Rhode Island, and Massachusetts that have special laws about holiday pay that employers will want to keep in mind. Fortunately, we’re covering that and other important details on holiday pay.
Holiday Pay Laws
Although it’s often customary for employers to provide, the United States has no federal law requiring private companies to offer holiday pay. It’s true, federal employees are protected by law to receive 11 paid holidays per year. And, the Fair Labor Standards Act (FLSA) requires an employer to pay its employees for time worked. But technically this means that if an employee takes the day off for Christmas, or even works a holiday shift, employers don’t have to pay them for time not worked. However, it will be notated in the company policy whether or not holiday pay is provided. It is always a good idea to consult with an employment attorney.
Private Employees Access to Holiday Pay
The Bureau of Labor Statistics reported in March 2022 that private employees in the U.S. receive an average of eight paid holidays per year. The number and percentage vary from industry to industry, with 81% of all private employees receiving access to paid holidays.
If employees are represented by a union, then any holiday pay will be included in their collective bargaining agreement.
Holiday Policy in the Private Sector
In practice, most private sector employers in the US give their employees the day off for national holidays, or they pay them time-and-a-half for working on the day.
Some companies also offer a floating holiday, which the employee can take at any time. This time off is considered to be an employee benefit, just like health insurance and free soft drinks in the break room. In 2020, many larger employers also decided to offer Juneteenth (June 19) as a paid holiday for their employees, leaving many employees pleasantly surprised. This practice has continued to grow through 2022, and into 2023.
Federal Holidays 2023
The difference between public and private employees has been a debated topic in America when it comes to employee benefits. While they both work hard, there are some key differences between the two regarding holiday pay. Federal employees are mandated to take off with pay for the following 11 holidays.
2023 Official Holiday Dates for Federal Employees:
- January 2 – New Year’s
- January 16 – Martin Luther King, Jr. Day
- February 20 – George Washington’s Birthday/Presidents’ Day
- May 29 – Memorial Day
- June 19 – Juneteenth National Independence Day
- July 4 – Independence Day/Fourth of July
- September 4 – Labor Day
- October 9 – Columbus Day/Indigenous Peoples Day
- November 10 – Veterans Day
- November 23 – Thanksgiving
- December 25 – Christmas
- **Every 4 years, Federal employees also receive holiday pay for inauguration day, January 20th.
What Happens If The Holiday Falls on a Weekend?
If the holiday happens to be on a Saturday, then the employee will receive the Friday preceding the holiday off. If the holiday falls on a Sunday, then they get the following Monday off.
What Holidays do Private Sector Employees Receive?
While it is not required, in general, many private sector employers provide paid holiday time for their employees, and many of those holidays coincide with federal holidays.
Private Sector employees may not get the same 11 days that Federal employees do; however, there are 6-8 that are typically provided (never required), and the rest is up to the employer if they want to include more.
Typical Paid Holidays – Private Sector (though not required)
- New Year’s Day
- Easter
- Memorial Day
- Independence Day/Fourth of July
- Labor Day
- Thanksgiving Day
- Friday after Thanksgiving
- Christmas Day
Optional Holidays – Private Sector
- George Washington’s Birthday/Presidents’ Day
- Juneteenth
- Good Friday
- Martin Luther King, Jr. Day
- Veterans Day
- Columbus Day/Indigenous Peoples Day
- Christmas Eve
- New Year’s Eve
- Election Day
- Floating Holidays – used at the employee’s discretion.
2023 for Massachusetts “Blue Laws” Changes
Massachusetts is unique in that it currently requires premium pay on Sundays and holidays for non-exempt retail employees.
On January 1, 2023, retail employers are no longer required to provide Sunday and holiday premium pay rates to employees. This will help employers lower the cost of doing business in the retail market.
The “Blue Laws” in Massachusetts categorize businesses into retail, non-retail, or manufacturing. Each is treated a bit differently. Non-retail, and manufacturing businesses need permits by the local police to be open on Sundays and most holidays unless they have exemptions. Retail businesses do not require a permit to be open on Sundays.
Many non-retail and manufacturing businesses require a permit to open on certain holidays. The holidays that are the most restricted are Memorial Day, Independence Day, Labor Day, Columbus Day before noon, Veteran’s Day before 1:00 pm, Thanksgiving Day, and Christmas Day.
This is an important change for 2023 in Massachusetts. An important note for Massachusetts is that while a company may get a permit to open on some holidays, they cannot force their employees to work on those days.
Massachusetts Public Holidays 2023
- New Year’s Day – Monday, January 2, 2023
- Martin Luther King Jr. Day – Monday, January 16, 2023
- Washington’s Birthday – Monday, February 20, 2023
- Patriot’s Day – Monday, April 17, 2023
- Memorial Day – Monday, May 29, 2023
- Independence Day – Tuesday, July 4, 2023
- Labor Day – Monday, September 4, 2023
- Columbus Day – Monday, October 9, 2023
- Veteran’s Day – Saturday, November 11, 2023
- Thanksgiving Day – Thursday, November 23, 2023
- Christmas Day – Monday, December 25, 2023
Retail Rules for Working Holidays in Massachusetts
Retail employees cannot work on Christmas, Columbus Day (before noon), Thanksgiving, and Veteran’s Day (before 1:00 p.m.) unless the retail business has have a permit from their local police department as well as approval from the state’s Division of Occupational Safety.
They can work without a permit on New Year’s Day, Memorial Day, Juneteenth Independence Day, Independence Day, Labor Day, Columbus Day (after noon), and Veteran’s Day (after 1:00 p.m.), but they can refuse to work.
These holidays used to guarantee premium pay, in addition to Sundays; however, retailers are only required to pay their regular rate starting in 2023.
They can work on Martin Luther King Day, President’s Day, Evacuation Day, Patriots’ Day, President’s Day, and Bunker Hill Day without limitation or a permit.
Rhode Island Premium Pay in 2023
Beginning in 2023, Rhode Island becomes the only State that will require non-exempt employees to be paid a premium rate for working on Sundays and holidays. In the past, it was Rhode Island and Massachusetts, but now they are the last ones standing, and it is important to keep up to date as many are shocked by the elimination of the “Blue Laws” in Massachusetts.
Rhode Island Public Holidays 2023
- New Year’s Day – Monday, January 2, 2023
- Memorial Day – Monday, May 29, 2023
- Independence Day – Tuesday, July 4, 2023
- Victory Day – Monday, August 14, 2023
- Labor Day – Monday, September 4, 2023
- Columbus Day – Monday, October 9, 2023
- Veteran’s Day – Saturday, November 11, 2023
- Thanksgiving Day – Thursday, November 23, 2023
- Christmas Day – Monday, December 25, 2023
Sample Content for Employee Handbook
Here’s some sample wording you can use if you’re building an employee handbook and your company offers paid holiday time off.
Regular employees who work 40 hours per week are eligible for holiday pay. Nonexempt employees become eligible after three months of service. Exempt employees are immediately eligible on hire. Temporary or part-time employees are not eligible.
[Company Name] offers the following paid holidays for all of our eligible employees. If a holiday falls on a Saturday, the day off will be taken on Friday. If the holiday falls on a Sunday, the following Monday will be the paid day off.
- New Year’s Day
- President’s Day
- Memorial Day
- Independence Day
- Labor Day
- Thanksgiving Day and Day after Thanksgiving Day
- Christmas Eve and Christmas Day
How To Manage Holiday Pay At Your Company
If your organization decides to close on specific holidays, are they required to compensate their employees? The answer to this question is dependent on the type of employment contract that was set up between an employee and their company.
What You Need to Know about Holiday Pay Policies
Per the Department of Labor, the Fair Labor Standards Act does not require payment for holidays. Employers are responsible for establishing which days are recognized as paid holidays and communicating them to employees through a company handbook.
Non-Exempt Employees
For non-exempt (overtime-eligible employees), the company is generally not required to pay employees on days in which they do not perform work. As long as all non-exempt employees are notified of the closure prior to reporting to work on the holiday, no pay is required.
If the non-exempt employee has accrued vacation or PTO time, the employee may request or the employer may require that the employee use accrued vacation or PTO to cover the days of the holiday closure.
Exempt Employees
For exempt employees who are paid on a salaried or fee basis, federal law requires the company to pay the employee his or her regular salary without interruption for business closures that extend less than one full work week. Failure to provide this continued compensation is likely to jeopardize the employee’s exempt status.
A “work week” is the predefined seven-day period that the employer uses for payroll purposes. Unless the closure extends for a full work week, the exempt employee should experience no interruption in salary for a holiday closure.
The employer may require the exempt employee to use accrued vacation time or PTO time to cover the closure. However, if the exempt employee does not have sufficient accrued time to cover the holiday closure, the employer is required to ensure the exempt employee experiences no interruption in salary.
State-Specific Rules to Know
Is Holiday Pay Time And a Half in California?
It is not required by law to pay time and a half in California for holidays. The exceptions are that if it is a benefit that the company wants to provide, or if the employee has already worked more than 40 hours per week, or 8 hours in a day. At that point, overtime pay will kick in.
How Does Holiday Pay Work in Alabama?
A private employer does not have to pay holiday pay in Alabama, unless they choose to do so as part of their benefits package. They can also require employees to work on holidays.
What is Holiday Pay in Tennessee?
Private employers are not required by law to provide holiday pay in Tennessee, but they can choose to do so if they want to provide it as part of their benefits package.
What is The Law on Holiday Pay in Arizona?
Holiday pay is not required by law in Arizona; however, the private employers can provide this as part of their benefits package. Private employers can require employees to work on holidays.
How Paycor Helps
Holiday pay is a complicated topic. You may offer it to your employees or not, but if you do then the rules can vary depending on whether they’re exempt, non-exempt, contractors, construction workers, or freelance workers. There are also other complexities such as eligibility dates for holiday pay, or other types of payment such as vacation or sick time.Paycor can help! Unlike many of our competitors, we don’t sell off-the-shelf technology.Instead, we tailor technology, including Paycor Payroll and Paycor Time and Attendance, specifically for your business.
Previous:
Are Your Job Descriptions Driving Away Talent with Unconscious Gender Bias?
Next:
Does my Company Have to Pay Out Banked PTO?
FAQs
Is holiday pay mandatory in New York? ›
Under New York labor and employment laws, employers are not required to offer so-called “fringe benefits,” or payment for hours that an employee does not actually work. These fringe benefits include vacation pay, sick days, holiday pay and personal days.
Should I ask for holiday pay? ›There is no law requiring extra pay for working on holidays in California. However, if your company chooses to pay employees extra for working on holidays, it must be included in your wage statement (pay stub).
Why is employee holiday pay important? ›Paid holidays off can be a major motivator to employees, since they know that they will be given days to rest without losing out on wages. Paid time off has been proven to lower stress levels, improve mental health and increase productivity, all of which are good for employees and your business.
Is holiday pay mandatory in Texas? ›Most state laws, including those of Texas, do not require employers to observe any holidays or to pay employees if time off for holidays is granted.
Is it legal to work 7 days a week without a day off in New York? ›Employers in New York State must provide certain employees with at least 24 consecutive hours of rest in any calendar week. This is referred to as a day of rest, and the Guidelines (below) provide more specific details. Employers may apply for a variance from the day of rest requirement.
What employee benefits are required by law in New York? ›As an employer with employees working in New York State, you may be required to provide insurance coverage for your employees including workers' compensation, disability benefits and New York Paid Family Leave.
How do I ask for holiday pay? ›- Write a short and direct subject line. ...
- State your purpose for writing. ...
- Clearly state the dates you're requesting. ...
- Consider mentioning the reason you want to take time off. ...
- Explain how you're preparing for your time off. ...
- Ask your supervisor to confirm your request.
You're still owed holiday pay
If you leave part-way through the year, you might not have taken all the holiday you're entitled to. Your employer has to pay you for any holiday you're legally entitled to but haven't taken.
- Review your company's PTO policy. Before you request time off, it's best to review your company's paid time off (PTO) policy. ...
- Look at the company calendar. ...
- Discuss your request with your manager. ...
- Send a formal request.
Paid holidays are a normal part of a compensation and benefits package offered by employers to attract and retain employees. These holidays are usually listed in an employment offer letter and appear in an employee handbook.
What happens when a holiday falls on your day off? ›
When a holiday falls on a nonworkday outside a full-time employee's basic workweek, he or she is entitled to an "in lieu of" holiday. The general rule is that the "in lieu of" holiday is the workday immediately preceding the nonworkday on which the holiday fell.
How much is holiday pay in Florida? ›Holiday pay is typically 1.5 times the regular rate for hours worked on federal holidays. However, employers can pay employees at the regular rate for hours worked or through paid time off.
How much is holiday pay at Amazon? ›You earn 1.5 your hourly rate if you actually work on the holiday. On top of that you also earn holiday pay, which is either 6 or 8 hours depending on your schedule that is paid at your regular rate. Christmas, Thanksgiving, fourth of July, Labor and Memorial Day, New Years.
What is an optional holiday? ›Restricted holiday means a holiday that is optional, and it is the discretion of the employee whether they want to take leave on that particular day or not. Restricted holiday is also called an 'Optional Holiday' and it is not mandatory to close the entire office on that day.
Is Good Friday a paid holiday? ›No, most people do not get holiday pay for Good Friday.
There are a number of businesses that do observe Good Friday as a paid holiday. Approximately 19% of those working in private industry and 31% of those working in state or local government positions are compensated for Good Friday.
However, employers may not discipline or terminate an employee who refuses to work for a total of seven days in a workweek, as employees are entitled to a day of rest under California law. Other exceptions may apply in which it would be illegal for your employer to terminate you for refusing to work additional hours.
Is it illegal to work 7 days in a row Ontario? ›No. An employer has to give one day off in each 7-day work week, or 2 consecutive days off in a 2-week period. So, your employer can require you to work 6 days in a row before giving you one day off, or 12 days in a row before giving you 2 days off.
What is the longest shift you can legally work? ›The FLSA sets no limits on how many hours a day or week your employer can require you to work. It requires only that employers pay employees overtime (time and a half the worker's regular rate of pay) for any hours over 40 that the employee works in a week.
Are 15 minute breaks required by law in NY? ›New York law does not require employers to give employees a rest break. However, for employers who opt to offer a rest break, it must be paid (up to 20 minutes), and it counts toward overtime requirements under federal law.
Is 32 hours considered full time in NY? ›Generally, Employers define full-time Employees as those who work at least 35-40 hours during a seven-day workweek. Employers may choose to provide benefits, such as paid time off, only to full time Employees.
How much is holiday pay in NY? ›
Many private sector employees who work on holidays may qualify for holiday pay (150% of hourly rate), or get paid days off, but it's up to the employer and may be included in your employment contract. Federal legal holidays include New Year's Day, Thanksgiving, Labor Day, and Christmas, just to name a few.
Will I lose my holiday if I'm off sick? ›Employees accrue (build up) their holiday entitlement as normal while they're off sick. Employers can have different rules on how they pay for holiday and sick leave. Employees should check the employment contract or any policy the employer has.
How do you calculate zero hour holiday pay? ›The 12.07 rule
Essentially, it means for every hour worked, someone on a zero-hours contract accrues roughly seven minutes of paid holiday. This rule makes calculating zero-hours holiday entitlement easy – just take 12.07% of the sum of hours worked in a week to arrive at the amount of holiday accrued.
However, whether you leave without serving any notice period at all, or serve some of your notice and leave, you're likely to be breaching your contract. This means that your employer could potentially sue you.
When you resign from a job what are you entitled to? ›These benefits may include severance pay, health insurance, accrued vacation, overtime, unused sick pay, and retirement plans. Companies aren't obligated to provide severance. However, many employers do provide severance pay. Line up references before you leave.
What is the difference between holiday pay and annual leave? ›Unlike Annual Leave, Holiday Pay isn't a balance that employees can use for taking leave - it exists mainly to ensure employees are reimbursed properly if they leave part way through the year, to account for the fact that their Annual Leave hasn't yet become due.
Can I take a day off work for personal reasons? ›You can just take a personal day when you need a break. But that's always easier said than done, right? It's hard to look your boss (and your co-workers) in the eye and say that you're taking a day off for personal reasons. But if you have personal days worked into your benefits, you 100% should be taking them!
How long after starting a new job is it acceptable to take a day off? ›The general rule of thumb is likely to wait around three to six months. However, it strongly depends on the organization and their culture.
Do I need to give a reason for a personal day? ›No, you do not need to give a reason for why you are taking a personal day. Your employer may ask why you are taking a personal day, and you can give an answer if you want, but employees generally do not need to give an answer if they do not want to.
How do holidays affect payroll? ›Direct deposit timing for holidays
Does payday fall on, or the day after, a holiday? Send your payroll one business day earlier than you normally would. The money will be drawn from your account before regular banking hours the next banking day.
What is it called when you get paid on holidays? ›
Holidays
Holiday pay compensates employees for time off during holidays. According to the BLS, employees who earn holiday pay receive an average of eight paid holidays per year. You might follow the federal holiday schedule when determining which days employees have off.
Check your employment contract
Whether or not you have to work on Christmas Day will depend on your contract of employment. That is usually a written document but it does not have to be, and the terms can also be found in what is implied through custom and practice.
You may need to remind yourself again and again (and again and again) that it is absolutely okay to take a break from the holidays. No matter how many people try to shame you into coming to the holiday party or having everyone over for Christmas dinner, remember your needs and stay strong!
Can you be denied a day off? ›Yes, the decision to approve or deny the use of accrued vacation time is up to you. But you should have—and document—a legitimate business reason for doing so.
Is it fine to take a day off? ›A day off will: Bolster your heart health and help prevent heart diseases. Reduce stress, anxiety, and depression, while increasing life satisfaction. Increase productivity and focus, and let you fall in love with your job again.
Is it illegal to not pay overtime in Florida? ›Overtime is mandatory in Florida for non-exempt employees who work more than 40 hours a week. They have to be paid a rate of at least one and a half times their regular rate. This is because Florida defaults to federal law when it comes to overtime.
Do Disney employees get holiday pay? ›The Contracts covering the Full-Time and Casual-Regular Cast Members at Walt Disney World provide Holiday Pay as a negotiated benefit. This benefit is a guarantee that all Union represented Cast Members enjoy because of our Union.
How much is holiday pay in California? ›There is nothing in state law that mandates an employer pay an employee a special premium for work performed on holidays, Saturdays, or Sundays, other than the overtime premium required for work in excess of eight hours in a workday or 40 hours in a workweek.
Is Amazon closed on Christmas? ›Amazon does not deliver on Thanksgiving or Christmas Day. Is Amazon Prime open on Christmas?
Does Lowes pay holiday pay? ›5 answers. No holiday pay. Lowe's only closes on Tha is giving and Christmas.
What is the holiday law in Canada? ›
at least 2 weeks of vacation annually once you have completed 1 year of continuous employment with the same employer. at least 3 weeks of vacation annually after 5 consecutive years of working for the same employer, and. at least 4 weeks of vacation annually after 10 consecutive years of working for the same employer.
What is a holiday only in Canada? ›There are only two nationwide stat holidays recognized by the Canadian government: Canada Day and Victoria Day. Every other legal holiday in Canada is set by either the provincial governments, or a particular worker's contract with their employer (government workers usually get the most days off).
Are holidays mandatory in Canada? ›Most employees are entitled by law to take the day off and receive full salary for the day, however, some businesses and essential care workers require employees to work on statutory holidays - in these cases the workers must be compensated financially (1.5x or 2x their regular wages) and in some cases they are also ...
How many vacation days in usa? ›The average American worker gets 11 days of paid vacation per year. In the private sector, the average number of paid vacation days after five years of service increases to 15 days. After 10 years of service, it rises again to 17 days.
How much do you get paid for Good Friday in Canada? ›If an employee works on Good Friday, then the employee is entitled to general holiday pay of an amount that is equal to at least 1.5 times their wage rate for each hour worked on that day.
How many holidays do most employers give? ›An average full-time employee in a small, privately-owned business in the U.S. receives about 7.6 paid holidays per year, according to the Bureau of Labor Statistics. That number also breaks down even further: Technical/professional employees get 8.5-ish days a year. Clerical/sales employees get 7.7-ish days a year.
How does holiday pay work in New York State? ›Many private sector employees who work on holidays may qualify for holiday pay (150% of hourly rate), or get paid days off, but it's up to the employer and may be included in your employment contract. Federal legal holidays include New Year's Day, Thanksgiving, Labor Day, and Christmas, just to name a few.
How many sick days are required by law in New York? ›Sick Leave Requirements
Employers with 100 or more employees must provide up to 56 hours of paid sick leave per calendar year. Employers with 5-99 employees must provide up to 40 hours of paid sick leave per calendar year. If net income is $1 million or less, employer must provide up to 40 hours of unpaid sick leave.
The minimum wage for NYC is $15 an hour. You must be paid for every hour you work, including work before and/or after your scheduled shift and time spent traveling during your scheduled shift. If you work more than 40 hours in a week, your employer must pay you time and a half for overtime for hours worked over 40.
What is the final paycheck law in NY? ›1. Receiving A Final Paycheck When An Employee Is Fired. According to a New York law on final paychecks, an employer must pay all unpaid wages no later than their regular payday for the period when the worker was fired. However, there are some special rules for the payment of sales commissions.
How does holiday pay work in the US? ›
Holiday premium pay is equal to an employee's rate of basic pay. Employees who are required to work on a holiday receive their rate of basic pay, plus holiday premium pay, for each hour of holiday work—i.e., double or 200 percent of their rate of basic pay.
What holiday should be paid? ›What holidays do you usually get paid for? New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day are the most common paid holidays. If you work those days, you might receive holiday pay. For federal workers, paid holidays also include Martin Luther King, Jr.
How many hours is full time in NY? ›Generally, Employers define full-time Employees as those who work at least 35-40 hours during a seven-day workweek. Employers may choose to provide benefits, such as paid time off, only to full time Employees.
How many vacation days do you get in New York? ›Employer responsibilities include: Employers with 100 or more employees must provide up to 56 hours of paid leave each calendar year. Employers with 5 to 99 employees must provide up to 40 hours of paid leave each calendar year.
Can I get fired for calling in sick 2 days in a row? ›That means that unless you qualify for legal protections under FMLA or the Americans with Disabilities Act, there is nothing stopping an employer from firing you for calling in sick.
Do you get paid for unused sick days in New York? ›Unless required by another agreement or policy, including the employer's own written leave policy, employers are not required under this law to pay employees for unused sick leave at the end of an employment relationship.
Is overtime mandatory in New York? ›Overtime pay is a higher pay rate for hours worked after 40 in a work week. New York Labor Law requires employers to pay one and a half times your regular rate of pay (instead of your regular rate) for hours worked after 40 in a work week. Almost all workers are entitled to overtime pay, but there are some exceptions.
Are 15 minute breaks required by law in New York? ›New York law does not require employers to give employees a rest break. However, for employers who opt to offer a rest break, it must be paid (up to 20 minutes), and it counts toward overtime requirements under federal law.
Is it illegal to work 7 days in a row in NY? ›Here's everything you need to know about how many days in a row you can work in New York. The New York State Labor Law mandates certain employees to have one day of rest in a calendar week. Such employees may only work for six days in a row in a week.
Can an employer hold your last paycheck if you quit New York? ›In New York, for instance, your employer has until the next scheduled pay date to provide you with your final paycheck. Failure to pay this final check on time is a minimum wage violation.
How long can an employer not pay you New York? ›
New York employers who make an untimely wage payment may do so in violation of state and federal laws. Employers must pay their employees within seven days of their particular pay period, whether it is on a weekly or biweekly basis. While some exceptions exist, most employers cannot engage in untimely wage payments.
Do you have to give 2 weeks notice in New York? ›Since there is no New York state law two weeks notice requirement, employers do not have to guarantee employment to their workers. While employees do not have to give two weeks' notice, employers can also terminate a worker's job at any point.