The Fair Labor Standards Act (FLSA) does not mandate that employers pay employees for time not worked, such as vacations or holidays. Paid holidays, paid vacation, and paid sick leave are determined by the employer (or negotiated by the employee’s representative, such as a union). An employee with paid holidays typically receives a day off with pay for certain holidays, most often those recognized by the federal government. According to the U.S. Bureau of Labor Statistics, 79% of U.S. civilian workers had access to paid holidays in 2021. Workers in the private industry average eight paid holidays per year.
Examples of Paid Holidays
The most common paid holidays in the U.S. are:
New Year’s DayMemorial DayIndependence DayLabor DayThanksgiving DayChristmas Day
The federal government recognizes the above holidays as well as the following:
Martin Luther King, Jr. DayWashington’s BirthdayJuneteenth"Columbus Day" (also observed as Indigenous Peoples’ Day)Veterans Day
Other organizations may also add the following holidays to their schedule:
EasterGood FridayFriday after ThanksgivingChristmas EveNew Year’s Eve
Sometimes, a company may offer a floating paid holiday that employees can take as needed. Other companies offer paid time off for the employee’s birthday or for Election Day.
Benefits of Paid Holidays
Increasingly, competitively paid holidays and other time-off benefits are becoming crucial to an employer’s ability to attract the best employees who have skills that are critical for the operation of the business. Paid holidays may be negotiated by employees who have an employment contract. Senior-level employees with a contract are likely to have come from positions in other organizations where their seniority gave them the maximum paid holidays and vacation time. Employer-paid vacation time can differ between exempt and non-exempt employees. Exempt employees are expected to work whatever hours are necessary to complete a job. They may have more flexibility in their schedule and less supervision, as well. These employees are exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). They’re typically salaried workers. Exempt employees in professional, technical, ormanagerial positions (such as software developers, HR staff, controllers, or marketing staff) may expect paid holidays to accompany their employment. Such employees are unlikely to accept positions in companies that don’t offer paid time off for holidays. Nonexempt employees aren’t exempt from the provisions of the FLSA. They’re typically required to track their time and be paid for overtime work. They may be paid hourly or they may receive a salary. They may be less likely to have paid holidays, or they may receive fewer paid holidays than their exempt or salaried colleagues. Part-time employees may receive some paid holidays, depending on the employer: For example, 79% of part-time employees received Labor Day as a paid holiday in 2018.
Alternatives to Paid Holidays
Some employers offer holiday pay for employees who work on a holiday when the office would normally be closed. Typically holiday pay would be expressed as a premium, such as time-and-a-half or double-time pay. Other employers may offer a day off without pay.
