Federal holidays and time off: what US employers must know

Executive overview

No US law requires private employers to give employees time off on federal holidays. Exceptions exist for government contractors under the McNamara-O'Hara Service Contract Act and Davis-Bacon Act. Many employers voluntarily observe holidays to aid retention and hiring.

Private employers have no legal obligation to offer paid or unpaid time off on federal holidays — but written policy clarity is essential.

Key rules for private employers

• No federal mandate to offer paid or unpaid holiday time off
• Government contractors under SCA or DBRA must follow prevailing local fringe-benefit standards
• Holiday pay (if offered) typically ranges from 1.5× to 2× the normal hourly rate — not legally required
• A floating PTO policy is a valid alternative to fixed holiday observance

What a holiday policy should specify

• Which employees are eligible
• Which dates are designated paid or unpaid days off
• Special pay rates for employees who work on holidays
• How holidays falling on weekends are observed (Saturday → preceding Friday; Sunday → following Monday)

11 federal holidays in 2022

1. January 1 — New Year's Day
2. January 17 — Martin Luther King Jr. Day
3. February 21 — Presidents Day
4. May 30 — Memorial Day
5. June 19 — Juneteenth
6. July 4 — Independence Day
7. September 5 — Labor Day
8. October 10 — Columbus Day / Indigenous Peoples Day
9. November 11 — Veterans Day
10. November 24 — Thanksgiving Day
11. December 25 — Christmas Day