Holiday pay in the US, explained
Last checked 2026-11-15T00:00:00.000Z
Holiday pay is not required by federal law for private-sector workers. If you work on Thanksgiving, your employer can pay your normal rate. Time and a half for holidays is common, but it is a company policy or a union contract term, not a legal rule.
Overtime still applies
The FLSA requires overtime pay of one and a half times the regular rate for non-exempt employees who work more than 40 hours in a workweek. A holiday does not change that count:
- Paid holiday hours you do not work generally do not count toward the 40 hours.
- Hours you actually work on a holiday count like any other hours.
- If your employer pays a holiday premium, such as time and a half, that premium can usually be credited toward overtime owed for the same week.
Common company policies
| Situation | Typical policy |
|---|---|
| Day off on a paid holiday | Paid for a normal day, often 8 hours |
| Working on a paid holiday | Time and a half or double time, or regular pay plus a floating day later |
| Holiday falls on your day off | Another day off or extra pay, depending on the handbook |
| Part-time workers | Paid holidays are often prorated or not offered |
Federal employees
Federal workers who are required to work on a holiday get holiday premium pay equal to their basic rate for up to eight hours, on top of their regular pay. In practice that is double pay for those hours. The rules are in 5 U.S.C. 5546.
State rules
A few states go further for particular jobs. Rhode Island, for example, requires premium pay for many retail employees who work on Sundays and certain holidays. Check your state labor department if you work in retail or under a state contract.