Labor & Employment Developments Blog

An often overlooked benefit provided by private-sector employers is paid federal and state holidays. Though many do so, private-sector employers generally are not required to: close, provide paid time off, pay a holiday premium, or treat holiday hours as “hours worked” for overtime calculations.

In 2026, there are eleven (11) federal holidays including: New Year’s Day (January 1st), Martin Luther King, Jr., Day (January 19th), Inauguration Day (January 20th), President’s Day (February 16th), Memorial Day (May 25th), Juneteenth (June 19th), Independence Day (July 4), Labor Day (September 7th), Columbus Day/Indigenous Peoples’ Day (October 12th), Veterans Day (November 11th), Thanksgiving Day (November 26th), and Christmas Day (December 25th).

In addition to federal holidays, there are many holidays recognized by one or more states including the following examples: 

• Mardi Gras (Louisiana)
• Good Friday (Connecticut, Delaware, Hawaii, Indiana, Kentucky, Louisiana, New Jersey, North Carolina, North Dakota, Pennsylvania, South Carolina, and Tennessee)
• Arbor Day (Nebraska)
• West Virginia Day (West Virginia)
• Day after Thanksgiving (California, Delaware, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Washington)
• Christmas Eve (Arkansas, Kentucky, Michigan, Maryland, Tennessee, North Carolina, Oklahoma, South Carolina, Texas, West Virginia, and Wisconsin)

The reasons private-sector employers provide holiday benefits varies. However, the reason in the vast majority of cases is rooted in state and local wage-and-hour rules, disability and religion accommodation laws, collective bargaining agreements, company policies reflecting retention and recruitment efforts, and/or—if applicable—federal or state government contract terms.

Though not necessarily required by law, employers should be aware of the following best practices and considerations when developing and administering their holiday policies and practices.

• Publish the holiday calendar. Release the annual schedule early, noting observed days when the calendar-date holiday falls on a weekend and any site-specific differences.
• Pay for time not worked. The Fair Labor Standards Act (FLSA) does not require paying nonexempt employees for holiday closures unless they work. Many employers voluntarily offer paid holidays as a benefit; doing so creates enforceable policy commitments you must administer uniformly.
• Overtime calculations. Under the FLSA, only hours actually worked count toward the 40-hour overtime threshold. Paying eight hours of holiday pay for a closed day does not, by itself, trigger federal overtime. Some states impose daily overtime or other premiums (for example, California’s daily overtime and double-time rules), so check local law and your workweek definition.
• Holiday premium pay. No federal requirement exists to pay time-and-a-half (or similar) for work on a holiday. Any premium obligation typically comes from a CBA, an employer policy, or a specific state/local rule for certain industries. Because these rules change, verify the current status in each location before holiday scheduling.
• Reporting-time/show-up pay. If you schedule staff on a holiday and then send them home due to slow business, some jurisdictions require “reporting time” pay. Align holiday staffing plans with local reporting-pay requirements.
• On-call and remote work. If you expect nonexempt employees to monitor systems, respond to messages, or remain on restrictive standby during a holiday, those hours may be compensable. Clarify expectations in advance.

To the extent you have questions regarding your holiday policy, the KMK Labor & Employment team is here to assist in evaluating your policy and compliance with state and federal law.