Most US private-sector workers assume "time and a half on holidays" is federal law. It isn't. Here's what is and isn't required, what most employers actually do, and how to calculate holiday pay when it stacks with overtime.
This is the part that surprises most people. The Fair Labor Standards Act does not require private employers to pay extra for working on holidays. It also doesn't require giving paid time off for holidays. Both are entirely up to the employer.
What is required: if you work on a holiday, those hours count toward your regular workweek for overtime purposes. So if you already worked 40 hours and then work 8 more on Thanksgiving, those 8 hours qualify for time-and-a-half — but only because they're overtime, not because they're holiday hours.
Common practices among US private employers (2024 SHRM survey):
Different rules apply to federal employees. They get 11 paid federal holidays. If required to work, they earn either holiday premium pay (typically 2× regular rate) or compensatory time off. Federal contractors typically inherit these rules through their contracts.
Example: $25/hr regular rate, working an 8-hour shift on Christmas Day with employer policy of 1.5× holiday pay.
Compare to regular pay: 8 × $25 = $200. The holiday premium added $100.
If holiday pay is policy-based and overtime is law-based, they can stack. Example: you work 8 hours on Christmas. You've already worked 40 hours that week. The 8 holiday hours are both overtime (>40 hrs in the week) and holiday hours.
Most employer policies handle this by paying whichever is greater (overtime OR holiday premium), not both stacked. But some union contracts and California state rules require both — that's "double-time-and-a-half" or 2.5× for unique situations.
| Holiday | Date | Day of week |
|---|---|---|
| New Year's Day | Jan 1 | Thursday |
| Martin Luther King Jr. Day | Jan 19 | Monday |
| Presidents' Day | Feb 16 | Monday |
| Memorial Day | May 25 | Monday |
| Juneteenth | June 19 | Friday |
| Independence Day | July 4 | Saturday (observed Fri) |
| Labor Day | Sept 7 | Monday |
| Columbus / Indigenous Peoples' Day | Oct 12 | Monday |
| Veterans Day | Nov 11 | Wednesday |
| Thanksgiving | Nov 26 | Thursday |
| Christmas Day | Dec 25 | Friday |
Massachusetts and Rhode Island historically required premium pay for retail workers on Sundays and major holidays under "blue laws." Massachusetts phased these out by 2023. Rhode Island still has limited requirements.
California has no state-mandated holiday pay, but daily overtime kicks in after 8 hours regardless of the day. So an 8-hour Christmas shift earns regular pay unless the employee already worked the day before. The 7th-consecutive-day rule applies too.
Since holiday pay is employer policy in the US, your employee handbook is the controlling document. Look for terms like "holiday premium," "holiday pay schedule," and "observed holidays." If your employer doesn't follow their own published policy, that's a potential breach of contract — not a wage-and-hour violation, but actionable.
The Hours Calculator handles overtime calculations. If you're paid a holiday premium and want to model exact totals, enter your holiday hours and set the multiplier accordingly. For salaried workers wanting to estimate effective holiday-day rates, the Salary Calculator shows your hourly equivalent.
Last updated May 2026. If something here is wrong or out of date, email contactus@calculatehours.net — we update fast.