Holiday Pay - Paid Holidays

Federal employees are entitled to receive holiday pay for time off. Paid holidays for Federal employees are established annually by the Office of Personnel Management (OPM), based on a "holiday pay law" that is specifically for Federal employees.

But, there is no Federal "holiday pay law" that specifically entitles private-sector employees to receive paid holiday time off.

In fact, there is no Federal law that requires private-sector employers to give employees time off for holidays, whether with or without holiday pay.

Of course, private-sector employers must pay employees for working on holidays. But, under Federal law, they don't have to pay overtime to eligible workers for holiday work, unless their total work hours exceed 40 in the same workweek.

When due, private-sector employers are not required to pay more for holiday overtime work than the standard overtime rate, the same rate as for any other workday.

The Fair Labor Standards Act (FLSA) is the "main pay law" so to speak, because it regulates equal pay, minimum wage and overtime pay at the Federal level for most employees. But, it doesn't regulate or require holiday pay or holiday time off. It also doesn't require more than the standard rate for holiday overtime work. In other words, under the FLSA, holidays are the same as any other workday regarding hours and pay.

This might be confusing, because many private-sector employers have traditionally offered holiday pay to their employees for time off on so-called "legal holidays" or "legal paid holidays". But, there's really no such thing as a legal paid holiday for private-sector workers.

Legal paid holidays were established by Federal, state and local governments to close government offices in observance of the holidays, yet permit public-sector employees to still earn wages while their offices are closed.

Private-sector employers have established paid holidays too, which are similar to public-sector legal paid holidays. But, they did so voluntarily as a benefit to attract and retain employees, not because they were forced to by Federal law. Some have also voluntarily offered a pay premium for work on holidays or more than the standard rate for holiday overtime work, such as double-time pay.

States may enact equivalent laws that are more generous than the FLSA. But, many states, if not all, have simply adopted the FLSA's absence of paid holiday provisions "as is" for private-sector employees. Some have enhanced the FLSA overtime and minimum wage provisions to the benefit of employees, but not specifically for overtime holiday pay.

But, you don't have to just take this writer's word for it. To research your work state's laws regarding holiday pay, overtime holiday pay, legal paid holidays and related matters, start here. Alternately or additionally, contact the relevant state labor department or consult an attorney.

Employment contracts and agreements, such as collective bargaining agreements, may grant holiday pay and holiday overtime benefits (such as double-time pay for holiday work) that state and Federal laws don't.