What holidays do you get paid time and a half in the United States?

For some, holidays are a time for rest and relaxation—a chance to kick back and enjoy quality time with family and friends. For others, holidays present the perfect opportunity to earn extra cash and boost paychecks with holiday pay. 

Although the Fair Labor Standards Act (FLSA) doesn’t require employers in the United States to provide holiday pay, many businesses recognize its value for encouraging hardworking employees. Holiday pay can boost team morale, motivating employees to show up and do their best on busy holidays. 

So, what exactly is holiday pay, and what holidays do you get paid time and half? In this guide, we’ll break down everything you need to know about holiday pay, from key federal holidays to common employer policies and important legal considerations. Whether you’re a business owner fine-tuning your benefits package or an employee looking to maximize your earnings, here’s everything you need to know. 

What is holiday pay?

First, let’s define holiday pay. It’s a type of compensation that some employers offer employees on federal holidays. Typically, holiday pay is distributed in two ways: 

1. Paid time off (PTO) for holidays: This is when employees receive full or partial pay for designated holidays, even if they don’t work. Typical holidays covered with PTO include Thanksgiving, Christmas, and New Year’s Day. 
2. Premium pay for working on holidays: Workers who clock in on designated holidays might receive extra compensation beyond their normal hourly wage, such as time-and-a-half or double-time pay.

The U.S. federal government doesn’t require employers to provide PTO or premium pay for holidays. Still, many employers offer holiday pay as part of their total compensation package, which might also include personal time off, vacation pay, or flexible work schedules. 

Today’s workforce values work-life balance and mutually beneficial employee-employer relationships as much as competitive salaries. Recognizing the importance of holidays with PTO or premium pay can attract talent, keep your workforce satisfied, and encourage employees to work while everyone else rests. 

What holidays do you get paid time and a half?

U.S. federal law doesn’t mandate holiday pay, including time-and-a-half and double pay. However, that doesn’t leave employers off the hook. Some states and municipalities may have special legislation that guarantees premium pay for employees. For example, Rhode Island requires employers to pay nonexempt employees a premium rate for working on federal holidays. 

Usually, individual company policy determines holiday pay, which may consider regional or industry standards. Employers should clearly outline PTO and holiday pay policies in their employee handbook. 

What are federal holidays in the U.S.? 

A federal holiday is a holiday observed by the U.S. government. Typically, government offices are closed for business, and federal employees are given the day off with pay. These holidays are established by law, and most offices, banks, and schools close in observance.

The following are designated federal holidays: 

• New Year’s Day (January 1)
• Martin Luther King Jr. Day (third Monday in January)
• Presidents’ Day (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)

If a federal holiday falls on a Saturday, it is typically observed on the preceding Friday. If the holiday falls on a Sunday, it is generally recognized the following Monday. Many employers follow the same calendar policies, but it’s still a good idea to include this information in an employee handbook. 

Labor laws don’t obligate businesses to close on federal holidays. Employers can schedule their workforce to clock in on Thanksgiving Day and Juneteenth. Additionally, private employers aren’t legally required to offer premium pay for clocking in on a federal holiday. 

What are paid holidays? 

Federal holidays aren’t the only holidays employers may offer. Some businesses designate other religious holidays or culturally significant commemorations as holidays that warrant a special rate of pay, including PTO or premium pay. 

How many paid holidays are in a year? Each employer can designate these days within their employment contract and employee handbook. Common holidays include: 

• Good Friday
• Easter
• Friday after Thanksgiving Day
• Christmas Eve
• The day after Christmas Day
• New Year’s Eve
• Presidents’ Day
• César Chávez Day

Employers often choose a combination of federal holidays and additional paid holidays that reflect the values of their diverse workforce. Employees should review their specific company policies for clarity. 

How does holiday pay work?

Wondering how to calculate holiday pay? Here’s a simple step-by-step guide:

1. Determine the employee’s regular pay rate. This is a worker’s hourly wage for routine, non-overtime work.
2. Decide on a premium pay rate. Most employers pay 1.5 times the regular rate. However, some employers provide double pay. 
3. Multiply the regular wage by the premium pay rate. Then, multiply this sum by the number of hours worked.

For example, if an employee earns $40 per hour and works six hours on a holiday for double pay, the calculation looks like this: 

$40 x 2 x 6 = $480 total holiday pay

Streamline holiday pay with tailored payroll solutions

For distributed workforces operating in and out of the U.S., diverse labor laws regarding holiday pay, vacation accrual, and overtime pay can quickly complicate payroll calculations. But with a bit of help, holiday pay won’t throw a wrench into your accounting workflows.

Oyster’s global payroll services ensure compliance with local regulations and reduce administrative burdens. Get started today.

FAQs 

Let’s address some common questions and concerns regarding holiday pay and time-and-a-half.

Do I have to provide employees with time off on holidays?

No, private employers aren’t required to provide employees time off on holidays, even federal holidays like Christmas and Juneteenth. However, providing days to rest and celebrate with family and friends reflects a commitment to work-life balance and employee well-being. Employers that provide holidays off foster a positive work culture, enhancing employee loyalty and retention.

How do paid holidays impact paychecks? 

That depends. If an employer provides premium pay for working on holidays, employees’ paychecks will increase for those days. If an employer doesn’t offer premium pay, the employee’s paycheck will remain consistent with their regular rate of pay. 

Do employers have to allow time off for religious holidays? 

Yes, employers with 15 or more employees must accommodate employees’ requests for time off for religious holidays covered under Title VII of the Civil Rights Act of 1964. However, they don’t necessarily have to offer PTO. If allowing the employee to have a religious holiday causes undue hardship to the organization (e.g., high cost, compromises workplace safety, or infringes on the rights of other employees), they may be exempt from accommodating. 

Do part-time workers and independent contractors get holiday pay? 

U.S. employers are not required to provide part-time workers or independent contractors with holiday pay. However, offering holiday pay or PTO can enhance your total compensation package. Premium pay might encourage part-time workers to take on extra hours during busy holiday seasons. Similarly, independent contractors will be more motivated to complete work requests on holidays. 

These policies should be clearly outlined in employment contracts to avoid confusion. This ensures employers and employees are aligned regarding pay expectations.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.