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Money guide

Is Holiday Pay Required? What the FLSA Does and Doesn't Say

Paid holidays and time and a half on Thanksgiving feel like rules, but federal law requires neither. The Fair Labor Standards Act sets the minimum wage and overtime after 40 hours, and holiday pay is left to the employer and the employee. Here is what the Department of Labor says, how holidays interact with overtime, three worked weeks at $20 an hour, and the 2026 federal holiday list.

The short answer

The Department of Labor puts it plainly: the FLSA does not require payment for time not worked, such as vacations or holidays, federal or otherwise. Those benefits are generally a matter of agreement between an employer and an employee, or the employee's representative such as a union.

The same goes for working on a holiday. The FLSA does not require overtime pay for work on weekends, holidays or regular days of rest, unless overtime is worked on those days. A holiday is a normal workday under federal law. What the FLSA does require for covered, nonexempt workers:

QuestionFLSA answer
Paid day off on a holidayNot required
Extra pay for working a holidayNot required
Minimum wage$7.25 an hour
Overtime1.5 times the regular rate after 40 hours in a workweek
Holiday pay counted as hours workedNo, if the day was not worked

Where state and federal minimum wages both apply, the higher one governs. The guide to minimum wage by state in 2026 lists the state rates.

So where does holiday pay come from?

  • Your employer's policy. The handbook or offer letter says which days are paid and at what rate. That is the agreement the Department of Labor refers to.
  • A union contract. A collective agreement can set paid holidays and premium rates.
  • Government contracts. Under the Service Contract Act, holiday and vacation fringe benefits are set in the wage determinations for contracts over $2,500. Under Davis-Bacon, holiday or vacation pay applies only where the wage determination specifies it.
  • Federal employment. Federal employees get the federal holidays below. That is a rule for federal workers, not for private employers.

State law can add rules on top of the FLSA, so check your state labor department if you think a state rule applies to your job.

How holidays change overtime

Two rules from the Department of Labor's regular rate fact sheet decide the math:

  1. Holiday pay for a day off is not pay for hours worked. Employers may exclude payments for occasional periods when no work is done, such as paid holidays and vacation, from the regular rate. Those hours do not count toward the 40.
  2. A holiday premium of at least time and a half can count toward overtime. Premium pay for work on holidays or weekends at a rate of at least 1.5 times the normal rate may be excluded from the regular rate and may be credited toward overtime owed under the FLSA.

Three weeks at an example wage of $20.00 an hour:

WeekHoursFLSA overtime hoursPay
A: holiday off, paid32 worked + 8 holiday0$800.00
B: full week plus a paid holiday40 worked + 8 holiday0$960.00
C: worked the holiday at 1.5x48 worked, 8 on the holiday8$1,040.00 or more

Week A. The worker is paid for 40 hours but worked 32. No federal overtime is due, because only hours worked count.

Week B. Paid for 48 hours, worked exactly 40. Still no federal overtime, for the same reason. An employer may choose to count the holiday as hours worked, and the fact sheet notes that if an agreement or established practice treats such time as hours worked, the payments must be included in the regular rate.

Week C. The worker works 48 hours, including 8 on a holiday that the employer pays at time and a half by policy. Straight time for all hours is $960.00. The holiday premium adds $80.00. The FLSA requires overtime for 8 hours, an extra half rate of $80.00 on top of straight time. Because the holiday premium is at least time and a half, it may be credited toward that overtime, so $1,040.00 can satisfy both. An employer that pays both separately pays $1,120.00. Which applies is a question of the employer's policy and any contract.

To run your own numbers, the hours calculator adds up time worked, the overtime pay calculator splits regular and overtime pay, and the paycheck calculator turns gross pay into take-home pay.

Holiday weeks and the workweek

Overtime is counted per workweek, so it helps to know what that is. The Department of Labor defines a workweek as a fixed and regularly recurring period of 168 hours, seven consecutive 24-hour periods. It does not have to match the calendar week and can start on any day and at any hour, but it stays fixed. Averaging hours over two or more weeks is not permitted.

That matters around holidays. Suppose someone works 32 hours in Thanksgiving week and 48 hours the week after. The total over two weeks is 80, exactly 80, but the two weeks are not averaged: the second week still has 8 overtime hours, worth $80.00 extra at $20.00 an hour. Overtime earned in a workweek must be paid on the regular payday for that period.

The 2026 federal holidays

OPM lists 11 federal holidays for 2026. July 4 falls on a Saturday, so for most federal employees the preceding Friday is treated as the holiday for pay and leave purposes.

Date (2026)Holiday
January 1New Year's Day
January 19Birthday of Martin Luther King, Jr.
February 16Washington's Birthday
May 25Memorial Day
June 19Juneteenth
July 3Independence Day (observed)
September 7Labor Day
October 12Columbus Day
November 11Veterans Day
November 26Thanksgiving Day
December 25Christmas Day

The FLSA does not require a private employer to close or pay on any of these days.

What to check in your own job

  • Which days does your written policy or contract name as paid holidays?
  • What rate applies if you work one: straight time, time and a half, or a day off later?
  • Do you have to work the day before and after to get holiday pay? That is also a policy question.
  • Are you nonexempt? Only nonexempt employees get FLSA overtime.
  • Does your state add anything? Ask your state labor department.

This page explains the federal rules in general terms, not legal advice for a specific job.

Frequently asked questions

Is holiday pay required by federal law?

No. The Department of Labor says the Fair Labor Standards Act does not require payment for time not worked, such as vacations or holidays, federal or otherwise. Paid holidays are generally a matter of agreement between the employer and the employee or the employee's representative.

Do I get time and a half for working on a holiday?

Not under federal law by itself. The FLSA does not require overtime pay for work on weekends, holidays or regular days of rest unless overtime is worked on those days, meaning more than 40 hours in the workweek. Some employers pay a holiday premium by policy or contract, but that comes from the agreement, not the FLSA.

Do paid holiday hours count toward overtime?

Not under the FLSA. The Department of Labor's regular rate fact sheet says holiday pay for a day off is not a payment for hours worked, so those hours do not count toward the 40 hours. A week with 32 hours worked and 8 hours of holiday pay has no federal overtime.

Does a holiday premium count against overtime?

It can. The Department of Labor says premium pay for work on holidays or weekends at a rate of at least one and a half times the normal rate may be excluded from the regular rate and may be creditable toward overtime pay due under the FLSA. So the extra half-time paid for a holiday can cover overtime owed in the same week.

How many federal holidays are there in 2026?

Eleven, according to OPM. Because July 4, 2026 falls on a Saturday, most federal employees observe Independence Day on Friday, July 3. These are holidays for federal employees; a private employer is not required by the FLSA to give them off or pay for them.

Sources

General information based on the sources above, not tax, legal or financial advice.