Holiday Pay

Learn about Holiday Pay and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
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What is “holiday pay”? 

Holiday pay refers to any form of compensation that employers provide their employees during holidays. This compensation may be given through full or partially paid time off, additional hourly pay for work rendered on a holiday, or a bonus. 

Are businesses legally required to give holiday pay? 

There is no federal law that requires employers to give holiday pay. As per the Fair Labor Standards Act (FLSA), employers are not required to pay employees for time that is not worked, including holidays. 

However, federal law requires employers to provide reasonable accommodation to employees celebrating religious holidays. Reasonable religious accommodation refers to any adjustment to the work environment that will allow an employee to observe their religious beliefs. This may be given through pre-arranged schedule changes which both employee and employer must agree on. Even with the accommodation, employers are not legally required to give holiday time off or additional pay. 

Ultimately, whether or not employees will be given holiday pay depends on the employer. For employees, it is important to ask about holidays, time off, and other policies before signing an employment contract or starting work. 

What are common paid holidays in the U.S.? 

Here is a list of common holidays in the United States:

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