Employers should understand what the federal holidays are, and how they may impact areas of the business such as employee scheduling, overtime, payroll processing, and other general business operations.
Federal holidays - also known as public holidays, national holidays, or bank holidays - are designated by the United States government to commemorate significant events, historical figures, or cultural traditions.
These holidays are observed nationwide, and federal employees are typically granted a day off from work. That said, private-sector employers are not required to provide Paid Time Off (PTO) for federal holidays. However, many employers provide these holidays as PTO. An employee handbook should provide insight as to whether or not an employer provides PTO for holidays.
While federal holidays are established by law, each state has the authority to recognize additional holidays specific to its history and traditions.
Understanding federal holidays is important for businesses and individuals alike, as they may impact various aspects of employment, including scheduling, payroll, and more.
The following chart breaks down the federal holidays that are observed in 2024:
Holiday | Date |
New Year’s Day | Monday, January 01 |
Martin Luther King, Jr. Day | Monday, January 15 |
Washington’s Birthday (Presidents Day) | Monday, February 19 |
Memorial Day | Monday, May 27 |
Juneteenth National Independence Day | Wednesday, June 19 |
Independence Day | Thursday, July 04 |
Labor Day | Monday, September 02 |
Columbus Day | Monday, October 14 |
Veterans Day | Monday, November 11 |
Thanksgiving Day | Thursday, November 28 |
Christmas Day | Wednesday, December 25 |
The following chart breaks down future federal holidays for 2025 and 2026:
Holiday | 2025 | 2026 |
New Year’s Day | Wednesday, January 01 | Thursday, January 01 |
Martin Luther King, Jr. Day | Monday, January 20 | Monday, January 19 |
Inauguration Day | Monday, January 20 * | |
Washington’s Birthday (Presidents Day) | Monday, February 17 | Monday, February 16 |
Memorial Day | Monday, May 26 | Monday, May 25 |
Juneteenth National Independence Day | Thursday, June 19 | Friday, June 19 |
Independence Day | Friday, July 04 | Friday, July 03 |
Labor Day | Monday, September 01 | Monday, September 07 |
Columbus Day | Monday, October 13 | Monday, October 12 |
Veterans Day | Tuesday, November 11 | Wednesday, November 11 |
Thanksgiving Day | Thursday, November 27 | Thursday, November 26 |
Christmas Day | Thursday, December 25 | Friday, December 25 |
*Federal employees in the Washington D.C. area are entitled to a holiday every four years on the day the president is inaugurated.
Whether or not an employer is required to provide PTO for federal holidays depends on whether or not they are a federal or private-sector employer.
Per the Fair Labor Standards Act (FLSA), private-sector employers are not required to provide Paid Time Off (PTO) for federal holidays. However, many private-sector employers may permit employees PTO on federal holidays. If so, this would be indicated in the employer’s employee handbook.
Federal employers must provide full-time employees with time off for the 11 designated federal holidays, or alternatively, offer replacement holidays to compensate them.
For federal employees that have a standard workweek of Monday through Friday, the Friday immediately before the federal holiday is observed as the federal holiday for time-off purposes.
For public or private sector companies, employees should refer to the company employee handbook to see how their employer handles holidays that fall on Saturdays.
It is a good practice for private employers to outline all observed holidays that employees will receive time off on at the start of every year.
For federal employees that have a standard workweek of Monday through Friday, the Monday immediately following the federal holiday is observed as the federal holiday for time-off purposes.
For public or private sector companies, employees should refer to the company employee handbook to see how their employer handles holidays that fall on Sundays.
It is a good practice for private employers to outline all observed holidays that employees will receive time off at the start of every year.
While not required, all public and private-sector employers are typically encouraged to provide “reasonable accommodations” for employees observing a religious holiday, though these arrangements are determined case by case and are often outlined in the company’s handbook.
The regulations governing religious holidays differ for federal and private-sector employers.
However, private employers have more flexibility and may opt to either close on religious holidays or grant employees time off without being subject to the same legal restrictions.
As mentioned in the Fair Labor Standards Act (FLSA), private-sector employers are not legally required to pay their employees extra for working on federal holidays. However, to incentivize employees to work on holidays, many private-sector employers offer time and a half or double-time for hours worked on a holiday.
Public employees who have to work on a federal holiday are entitled to holiday premium pay which is commonly referred to as “double time”. Holiday premium pay is pay for non-overtime hours of work that you are required to work on a holiday. Any public employee who works on a federal holiday may not work more than 8 hours that day.
It is important to remember that banks generally close on federal holidays. Whether or not the holiday falls on or near a scheduled payday, employers should ensure they begin to process payroll accordingly to ensure that employees are paid on time.
For instance, if payroll takes two business days to process, make sure that you begin processing your payroll at least one day earlier than usual, as federal holidays are not business days.
Although not all employers are required to provide their employees with Paid Time Off (PTO) for federal holidays, it is still important to know which days federal holidays fall on and how to manage such holidays, so that employers may adjust work schedules and payroll processing time accordingly.
Federal holidays can pose significant challenges for employers, especially with varying requirements across different states. Without the right tools and solutions in place, administering PTO for federal holidays or otherwise can be complex and time-consuming.
Employers grappling with overtime or PTO for federal holidays or other scenarios should consider seeking help from a trusted HR and payroll provider, or explore modern time and attendance and payroll processing solutions to help formalize and streamline back office processes like these.
Looking for more guidance on federal holiday compliance? Contact us today or connect with a provider that can help.