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:
| Question | FLSA answer |
|---|---|
| Paid day off on a holiday | Not required |
| Extra pay for working a holiday | Not required |
| Minimum wage | $7.25 an hour |
| Overtime | 1.5 times the regular rate after 40 hours in a workweek |
| Holiday pay counted as hours worked | No, 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:
- 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.
- 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:
| Week | Hours | FLSA overtime hours | Pay |
|---|---|---|---|
| A: holiday off, paid | 32 worked + 8 holiday | 0 | $800.00 |
| B: full week plus a paid holiday | 40 worked + 8 holiday | 0 | $960.00 |
| C: worked the holiday at 1.5x | 48 worked, 8 on the holiday | 8 | $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 1 | New Year's Day |
| January 19 | Birthday of Martin Luther King, Jr. |
| February 16 | Washington's Birthday |
| May 25 | Memorial Day |
| June 19 | Juneteenth |
| July 3 | Independence Day (observed) |
| September 7 | Labor Day |
| October 12 | Columbus Day |
| November 11 | Veterans Day |
| November 26 | Thanksgiving Day |
| December 25 | Christmas 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
- U.S. Department of Labor, Holidays (the FLSA does not require payment for time not worked, such as vacations or holidays; a matter of agreement; Service Contract Act and Davis-Bacon notes)
- U.S. Department of Labor, Wage and Hour Division, Fair Labor Standards Act ($7.25 minimum wage; overtime at not less than one and one-half times the regular rate after 40 hours; no overtime required for weekend or holiday work unless overtime is worked)
- U.S. Department of Labor, Fact Sheet #56A, Overview of the regular rate of pay (holiday pay for time off excluded from the regular rate; holiday and weekend premium of at least 1.5 times excludable and creditable toward overtime)
- U.S. Department of Labor, Wage and Hour Division, Overtime pay (workweek of 168 hours, seven consecutive 24-hour periods; need not match the calendar week; no averaging over two or more weeks; overtime paid on the regular payday)
- U.S. Office of Personnel Management, Federal holidays (11 holidays in 2026; Independence Day observed on Friday, July 3)
General information based on the sources above, not tax, legal or financial advice.