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The More You Know: Are Employers Required to Give Holidays Off (With Pay)?

Minimum wage law. Overtime pay. Paid sick leave laws by state. The list goes on and on. Between federal and state workplace laws, there’s a lot that employers need to keep track of. But, what about holidays? Are employers required to give holidays off to employees?

If you’re an employer, you need to know the answer. That answer impacts everything from your company policy to your business hours. 

Are employers required to give holidays off? 

There are over 10 federal legal holidays, including Christmas Day, Memorial Day, and Juneteenth. The question is: Are federal holidays mandatory for all businesses and employees? 

To answer the question more fully, look to federal and state rules on the subject. Then, create a company policy that’s compliant—and stick to it.

1. Understand federal rules

So, who gets federal holidays off? Federal businesses generally observe federal legal holidays, which include:

But, what about private employers? What do they need to do about federal legal holidays? 

The Fair Labor Standards Act (FLSA) is the big federal law that establishes workplace standards like minimum wage and overtime. So, does the FLSA require private employers to give employees paid time off for holidays? 

Nope. The FLSA does not require that employers pay employees for time not worked, such as holidays. 

Wait … So what exactly does the FLSA require?

Employers need to know what the FLSA does and doesn’t require. But if you don’t, worry not! We’ve got your FLSA cheat sheet right here. Download our FREE guide for your PDF copy.

There’s also no federal law requiring private employers to give employees any holidays off. And, there is no federal law requiring private employers to give employees a premium pay rate (e.g., time and a half or double-time) just for working on a holiday. 

Long story short: Private employers do not have to give employees time off on holidays or provide premium pay to those who work under federal law. 

2. Check your state laws

Some states have stricter or additional workplace laws than what the FLSA requires. This includes state:

So, are there state holiday pay rules? For the most part, no. Like the FLSA, most states do not require private employers to do anything special on holidays, such as give employees paid time off, premium pay, or unpaid time off.

However, there are two states—Massachusetts and Rhode Island—that have holiday rules that impact private employers.  

Massachusetts 

Massachusetts’ holiday rules are known as “Blue Laws.” The Massachusetts Blue Laws determine which businesses can legally operate on state legal holidays (and Sundays) and whether employers must give employees premium pay. 

If you’re an employer in Massachusetts, you may be required to obtain a permit to operate on specified legal holidays. State requirements depend on what kind of establishment you own: 

Retail
Non-retail
Manufacturer

Check out the Massachusetts Blue Laws for more information, including premium rates and requirements.

Rhode Island

Rhode Island requires private employers to pay employees a premium rate of time and a half on state legal holidays for hours worked. And, employees must be able to refuse work on holidays (unless they are employed by a manufacturer that operates seven days a week). 

Rhode Island legal holidays include:

For more information, check out A Guide to Wage and Workplace Laws in Rhode Island.

3. Your company policy

After checking in on your federal and state requirements, create a compliant company policy that answers Is holiday pay mandatory?

Determine how your business handles holidays. For example, you might: 

Once you create your policy, stick to it. 

So, do employers have to pay holiday pay? The bottom line

In most cases, private employers aren’t obligated to do anything special when it comes to employees and holidays. But sometimes, whether you have to give employees time off or premium pay on holidays depends on some factors. 

Ask yourself:

This is not intended as legal advice; for more information, please click here.