Holiday pay in 2026: federal law and 3 states' rules

What federal law requires when you work Thanksgiving, Christmas, or New Year's Day

The FLSA does not require payment for time not worked, such as holidays, says the US Department of Labor (DOL). Paid holidays are generally a matter of agreement between you and your employer. The FLSA also requires no premium for holiday work: the time worked on a holiday is hours worked just as any other day.[1][3]

Federal contracts are the exception. On federal service contracts, the wage determination states any holiday benefits. On construction contracts covered by the Davis-Bacon Act, holiday pay is owed only if the wage determination requires it.[1]

Overtime depends on the week, not the day. Unless your job is exempt, you are owed at least time and one-half your regular rate for hours over 40 in a workweek. A workweek is a fixed period of 7 consecutive 24-hour periods that need not match the calendar week.[2]

A paid holiday you take off does not count toward those hours. DOL says time off for a holiday, even though you are paid for it, is not hours worked for overtime. Your employer also cannot credit that holiday pay against overtime it owes you.[3][4]

Some employers pay a holiday premium anyway. If it is at least time and one-half, federal rules let the employer count it toward the overtime it owes for that week.[5]

The FLSA's overtime protection applies to employees, not independent contractors: see how the law tells an employee from a contractor.[14]

Holiday pay in Rhode Island, Massachusetts, and California

Rhode Island requires at least time and one-half for work on Sundays and holidays, Thanksgiving, Christmas, and New Year's Day included. The rule excludes many jobs, among them health care, restaurants, hotels, recreation, agriculture, and call centers. Physicians, dentists, lawyers, accountants, and supervisory employees exempt under federal overtime law are excluded too. You cannot be fired or penalized for refusing holiday work, except at a manufacturer that runs 7 days a week.[6][7]

Rhode Island stores need a local license to open on a holiday. None is issued for Thanksgiving or December 25, with a few exceptions. They include pharmacies, florists, garden stores, bakeries, video stores, and food stores with fewer than 6 employees per shift. Retail holiday work is voluntary, paid at time and one-half, with at least 4 hours guaranteed.[8]

Two groups are left out of that retail rule. Bakeries and pharmacies need no time and one-half and can require the work. Salaried executive, administrative, and professional employees who are exempt from overtime get no premium.[8][15]

Rhode Island's labor department counts the two premiums in a set order. Outside retail, overtime hours over 40 come out first, then the holiday hours from the rest; both are paid at time and one-half. In retail, the holiday hours come out first, then any hours over 40 in the rest.[9]

Massachusetts ended its requirement to pay a Sunday and holiday premium on January 1, 2023. Retail employers still pay time and one-half for hours over 40 in a week, holiday hours included. Retail work on Thanksgiving and Christmas needs a statewide approval and a local police permit. Most retailers also cannot require you to work on New Year's Day.[10]

California requires no holiday premium. Its Labor Commissioner says hours worked on holidays are treated like hours worked on any other day of the week.[11]

How federal employees are paid for holidays

Most federal employees get paid time off on each federal holiday, says the Office of Personnel Management (OPM). When a holiday falls on a Saturday, most observe it the Friday before; a Sunday holiday moves to the Monday after.[13][12]

A federal employee required to work a holiday gets holiday premium pay equal to the rate of basic pay: double, or 200% of basic pay. It covers non-overtime holiday hours, up to 8 on a standard schedule, with at least 2 hours of premium pay for any holiday work.[13]

Private employers set their own holiday calendars. The FLSA does not require them to follow this one, or to pay for any holiday, federal or otherwise.[1]

How to check your holiday pay before you work the holiday

You need your handbook or offer letter, your schedule for the week, and the pay stub that covers it.

For time off you have already earned, check use-it-or-lose-it vacation rules.

Rhode Island's Department of Labor and Training enforces the state's wage and workplace laws. Contact its Labor Standards unit about unpaid holiday wages.[9]