Is “Holiday Pay” Mandatory? A Labor Lawyer Explains

With only rare exceptions, holiday pay is not legally mandatory. Premium pay for work performed on recognized holidays is only legally required for certain federal employees and in Rhode Island. There are no other state or federal laws that require it for salaried or hourly workers. However, many employers provide it in their employment contracts. When they do, you are contractually entitled to it.

Do any laws require premium or overtime pay for work done on holidays?

With only rare exceptions, the law does not require your employer to pay extra for work done on a holiday. The only exceptions are for:

• some employees in the federal government’s Executive Branch, and
• certain workers in Rhode Island.

Massachusetts used to have a law that required premium pay for work done on specified holidays. However, it passed a law that phased out the extra pay.¹ Starting on January 1, 2023, workers in Massachusetts are no longer entitled to premium pay for holiday work. They can, however, refuse to work on the following holidays without facing retaliation:

• Columbus Day or Indigenous Peoples’ Day,
• Veterans Day, and
• New Year’s Day.²

The Executive Branch of the federal government

Under federal law, many federal employees are entitled to double-time pay, or twice their regular rate of pay, for hours worked on a federal holiday.³ The law covers:

• all departments within the Executive Branch,
• independent agencies in the Executive Branch, like the Government Accountability Office (GAO), and
• corporations that are controlled by the federal government or that are owned by it.⁴

However, there are exceptions. For example, the following types of workers are not entitled to double-time pay for work done on a paid holiday:

• elected officials,
• department heads,
• employees working abroad and who are paid according to local customs,
• student employees,
• civilians on a vessel operated by the Coast Guard,
• lighthouse keepers, and
• members of the Senior Foreign Service.⁵

Note, though, that part-time employees are not an exception. If they are covered by the law, part-time employees are entitled to holiday pay in addition to full-time employees.

These federal holidays are the following 11 days:

1. New Year’s Day,
2. Martin Luther King, Jr. Day,
3. Washington’s Birthday, also known as President’s Day,
4. Memorial Day,
5. Juneteenth,
6. Independence Day, also known as July 4th,
7. Labor Day,
8. Columbus Day or Indigenous Peoples’ Day,
9. Veterans Day,
10. Thanksgiving, and
11. Christmas Day.⁶

If a holiday falls on the weekend rather than a workday, covered employees will either have the preceding Friday or the following Monday off.

Rhode Island state law

Rhode Island is the only state that has a law that mandates extra pay for working on a holiday. There, most workers are entitled to 1.5 times their regular rate of pay for hours worked on a covered holiday.⁷

The specific holidays that are covered are different than under federal law. In Rhode Island, workers get premium pay for working on the following 9 days:

1. New Year’s Day,
2. Memorial Day,
3. Independence Day,
4. Victory Day, a state holiday that commemorates the end of World War II that is unique to Rhode Island and is held on the second Monday in August,⁸
5. Labor Day,
6. Columbus Day or Indigenous Peoples’ Day,
7. Veterans Day,
8. Thanksgiving Day, and
9. Christmas Day.⁹

However, not all workers are eligible for premium pay for holiday work in Rhode Island. Certain workers are exempted, like:

• healthcare workers,
• lawyers,
• farmers,
• certain hospitality workers, and
• commercial fishermen.¹⁰

Are there any laws that require time off for holidays?

No, there are no state or federal laws that require employers to give workers any time off for holidays.

The Fair Labor Standards Act (FLSA) is the federal law that applies to most employers across the country. It does not mandate any time off for holidays, let alone paid time off (PTO). Instead, it leaves the issue up to state laws.

There are no state laws that mandate time off for holidays, either. Even Rhode Island only mandates premium pay. Instead, states leave the issue up to employers.

Many employers, however, do provide time off for the holidays. In many cases, their businesses close for the holiday. Because there are no laws that are on point, that time off can be either:

• paid, or
• unpaid.

If your employer offers time off for the holidays, your employer has to provide it. While you are not legally entitled to time off for holidays, you may be contractually entitled to it. If your employment contract, employee handbook, or collective bargaining agreement states that you get holiday pay, then you should receive it. Your employer’s holiday pay policies are generally found among the provisions that detail other workplace benefits, like vacation pay.

What about for religious holidays?

Employers are not legally required to provide paid time off for religious holidays. However, they are legally required to make reasonable accommodations for your religious beliefs.

Examples of religious holidays include:

• Good Friday,
• Ramadan,
• Diwali,
• Yom Kippur, and
• Lunar New Year.

Just like with non-religious holidays, federal and state law are silent on requiring holiday pay for them. However, Title VII of the Civil Rights Act of 1964 forbids employers from committing religious discrimination in the workplace.¹¹ So long as they do not put undue hardship on the business, employers have to make reasonable accommodations to allow for your religious observances.¹²

Many employers make sufficiently reasonable accommodations with company policies that either:

• schedule your workweek around religious holidays that it knows you observe, or
• let you take PTO like vacation time or sick leave for holiday time.

What if my employer promises holiday pay in the employment contract?

If your employer promises premium holiday pay or paid time off for holidays, then you are contractually entitled to receive it. Your employment contract is a legally binding agreement.

What can I do if my employer promised holiday pay but is not providing it?

If your employment contract includes premium pay for holiday hours or paid time off for certain holidays, but then your employer is not providing it, it can amount to a breach of contract. If this happens, you have legal recourse.

Most states have a Department of Labor where you can file a claim alleging a violation of labor law, like a breach of an employment contract. For example, in California, the California Division of Labor Standards Enforcement (DLSE) has the Labor Commissioner’s Office. Workers in California can file a claim there and the Office will investigate.

Additionally, you can file a lawsuit against your employer. This lawsuit would demand compensation for your unpaid premium pay or paid time off. These lawsuits can become class actions if your employer was also depriving your coworkers of holiday pay as well.

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