No, paid holidays are NOT required
Employees (and some employers) in the private sector might be surprised to learn that no federal law requires employers to give employees paid holidays, or even unpaid holidays. Many businesses are open on holidays, and employees are working. Restaurants, for example, do a hearty trade on Thanksgiving, and most retailers are open and busy the following day. If hourly, nonexempt employees are working, they must be paid.
Federal government employees, on the other hand, are entitled to 11 paid, federally recognized holidays in the U.S.:
- New Year’s Day: January 1
- Martin Luther King Jr.’s Birthday: Third Monday in January
- Washington’s Birthday: Third Monday in February
- Memorial Day: Last Monday in May
- Juneteenth: June 19
- Independence Day: July 4
- Labor Day: First Monday in September
- Columbus Day: Second Monday in October
- Veterans’ Day: November 11
- Thanksgiving Day: Fourth Thursday in November
- Christmas Day: December 25
Private sector employers that don’t give employees any (or few) paid holidays could find it hard to attract and retain quality workers. They might give employees some holidays off, but not all. Employers can benefit from including a floating day to accommodate the many different holidays employees might celebrate.
Holiday pay policies
Employers may (and often do) have policies that require employees to work the day before and after holidays to receive holiday pay as part of company benefits programs.
Company policies can also require that employees work for the company for a certain amount of time before being eligible for paid holidays, such as during onboarding periods.
Those types of policies should be well crafted, identify what holidays are included, and indicate any employee eligibility criteria. The policies should also be well communicated so employees know what to expect.
Rhode Island and Massachusetts have laws governing holiday pay.
Key to remember: Employers are not required by federal law to give employees holidays off, either paid or unpaid. Doing so can help a company be competitive.