What Are Paid Holidays and How Do They Work?

Did you know that about 79% of civilian workers get paid for federal holidays? 

What does this tell you? 

Well, despite the fact that there are 11 federally-recognized holidays, companies in the private sector are not required by law to give all those holidays off. Also, even if employers do offer time off for holidays, they are not required to pay wages for those days.

Precisely because of this fact, holidays and holiday pay can be confusing, especially if you work in the private sector. You may feel lost because your employer hasn’t specified your PTO schedule and now you’re not sure whether you can plan an extended weekend getaway.

Holidays are confusing for employers, too, because they might not be sure whether they should offer paid time off or not. Luckily, we’ve done all the research for you. We’ve made a list of the 11 paid holidays in the US so that both employers and employees know what the typical paid holidays they can expect are. Apart from the list, in this blog post, we cover the benefits of paid holidays for both employers and employees.

What are paid holidays - cover

What does a paid holiday mean?

Paid holidays refer to almost all federally observed holidays (national, state, or religious). The company usually decides to pay wages for taking these days off. In fact, they’re typically offered as part of an employee benefits package.

Even though the US government does not mandate employers to give time off, the aforementioned statistics by the US Bureau of Labor further indicate that about 81% of private companies give paid holidays to their employees on their own. Granting federal paid holidays to employees is a way of showing appreciation for all their hard work, so many employers choose to include them in their PTO policy.

💡 Clockify Pro Tip

Learn how to easily manage vacations, holidays, and other non-working days.

How do paid holidays work?

According to the Department of Labor (DOL), the Fair Labor Standards Act (FLSA) does not require private employers to give federal or national paid holidays. They also don’t need to pay employees for the hours they did not work during these holidays. So, if your company needs to operate on a holiday, you can request your employees to work on such days (e.g., Christmas Day or Thanksgiving Day).

However, whether employees will be working during these holidays is a matter of agreement that can be negotiated with the employer. 

So, even though the FLSA does not regulate time off and pay regarding federal holidays, as we already mentioned, in practice, many private employers usually include them as part of the employee’s compensation and benefits package. 

Furthermore, many companies in the private sector determine specific holidays when their employees do not have to work. 

On the other hand, federal employees such as office clerks, postal workers, accountants, or lawyers are protected and mandated by law to take federal holidays off. Moreover, if the holiday falls on a Saturday, the federal employee will get the Friday before the holiday off. In case the holiday falls on a Sunday, they won’t be working the following Monday.

What paid holidays do people get in the US?

Many employees look forward to reuniting with family and friends on holidays. 

But, unfortunately, not all of them receive these holidays as paid time off. Let’s see what the typical paid holidays by law are, how they are celebrated, and whether business owners and government offices provide any of these federal holidays as paid days off.

New Year’s Day

New Year’s Day is always celebrated on the 1st of January, marking the beginning of the Gregorian calendar year. The earliest recorded festivities honoring the arrival of the new year date back about four millennia. 

New Year’s Day is usually celebrated by:

  • Organizing parties, 
  • Preparing special meals, 
  • Making resolutions for the upcoming year, and 
  • Watching fireworks. 

State government offices, post offices, banks, and schools are officially closed for this holiday. Many private businesses may also be closed on this day, while very few people have to work. For example, certain organizations (like hospitals) may ask the employees to work on a federal holiday in case of emergencies. Some service occupations (such as retail and grocery stores or restaurant chains) might also be open for business on this day. Additionally, public transportation may not run on their regular schedules.

Memorial Day

Memorial Day is a federal holiday in the US honoring all American veterans who died in the Civil War. To commemorate the nation’s sacrifice, it became an official federal holiday in 1971. Americans observe this floating holiday (the date may vary each year) on the last Monday of May (May 25–31) by:

  • Visiting cemeteries or memorials, 
  • Gathering with family and friends, and
  • Engaging in parades. 

All non-essential federal government offices are closed on this day. All federal employees (working in the public sector) are paid even if they don’t go to work, while many private-sector employees usually get either regular pay or special holiday pay for working on this day.

Independence Day

Independence Day commemorates the Declaration of Independence being approved by the Continental Congress on July 4, 1776. This holiday always falls on the same date (4th of July). 

Many Americans celebrate Independence Day by:

  • Organizing a picnic or barbecue, or
  • Visiting relatives and friends. 

The 4th of July is also the time when flag-themed decorations can be seen everywhere across the US. 

Since it’s a federal holiday, all non-essential federal offices are closed (e.g. banks, schools, and post offices). In case the date falls on a Saturday or Sunday, workers in federal government institutions do not work the day before or after the holiday (Friday or Monday). 

Most private businesses also close on Independence Day. On the other hand, major grocery and retail stores are open, while national drugstore chains and shopping malls may have limited holiday hours.

Labor Day

Labor Day became a federal holiday in 1894. This floating holiday falls on the first Monday in September (September 1–7). 

To honor the contributions and achievements of the US labor force, Americans celebrate this day with:

  • Picnics,
  • Barbecues, 
  • Parades, 
  • Fireworks, 
  • Sports games, and 
  • Similar social events. 

Many Americans view this holiday as the end of the summer and the start of the school year. Federal and state government offices are officially closed on Labor Day, while some schools and private businesses may also not work on this day. 

However, most private businesses remain open and usually provide holiday pay or an employment incentive to employees working on Labor Day. Although many private employers offer paid time off for this holiday, they are not legally required to do so.

Thanksgiving Day

Since 1941, Thanksgiving has always been celebrated on the 4th Thursday in November. It’s a floating holiday that falls anywhere between November 22–28. 

The holiday represents an official day for Americans to express gratitude and appreciation for everything they have. 

For Thanksgiving, families and friends usually prepare a traditional meal that consists of:

  • Roasted turkey,
  • Stuffing, 
  • Potatoes,
  • Vegetables, 
  • Cranberry sauce, 
  • Gravy, and 
  • Pumpkin pie.

Some cities also organize parades during the Thanksgiving weekend. 

Most federal and state government offices, private businesses, schools, universities, colleges, and other institutions are officially closed for Thanksgiving. 

Many federal offices and private employers provide the Friday after Thanksgiving off, which means that employees can enjoy a long four-day weekend.

Christmas Day

Christmas Day is always on a fixed date, December 25th. Although it’s a religious and cultural observance, it’s officially recognized as a federal holiday as well. 

To commemorate Jesus Christ’s birth, many Americans:

  • Decorate their homes and gardens with lights, 
  • Put up Christmas trees, 
  • Gather with family or friends, 
  • Cook a special, festive meal, 
  • Prepare gingerbread and cinnamon cookies,
  • Exchange gifts, and
  • Organize shelter or charitable projects for homeless people. 

Many federal government organizations, schools, and businesses are closed on Christmas Day. If the holiday falls on a weekend, then the nearby weekday (Friday or Monday) may be used as a day off. 

Even though private sector employees aren’t entitled to a day off or extra pay for working on Christmas, most companies do typically provide a day off or 1.5 times pay.

Martin Luther King, Jr., Day

Martin Luther King, Jr., Day was finally designated as a federal holiday in the US in 1983. All 50 states, including the District of Columbia, mark this holiday every year on the 3rd Monday in January. 

Today, this holiday is celebrated with marches and parades. Civil rights and political leaders also give speeches to:

  • Show respect for the achievements of Martin Luther King,
  • Enforce civil rights protection,
  • Promote nonviolence to end racial segregation, and
  • Invite people to join public service.

All non-essential federal offices don’t work on this day. Federal employees get compensation for not working on this day. However, only 45% of private sector companies give their employees a paid day off on King’s birthday.

Juneteenth National Independence Day 

Juneteenth National Independence Day was legally approved as a federal holiday by President Biden in 2021. Celebrated on June 19th, Juneteenth commemorates the end of slavery of the African American slaves in Texas who were captured in 1865.

Many Americans celebrate this day with:

  • Parades, 
  • Barbecues,
  • Competitions,
  • Rodeos,
  • Races, and 
  • Block parties.

At the state level, governments vary in whether they observe Juneteenth as an official holiday. 

According to a Pew Research Center analysis, nearly half of the states have Juneteenth National Independence Day as a paid federal holiday. This means federal government offices are closed, and workers receive a paid day off. On the other hand, retailers and private companies can choose whether they would remain open. Nevertheless, a report by the International Foundation of Employee Benefits Plan suggests that 30% of private employers provide Juneteenth as a paid day off.

Columbus Day

Columbus Day is a federally-recognized holiday in 28 states in the US. Americans have celebrated this day on the 2nd Monday in October ever since 1971. Since it happens to fall on a Monday, it’s a good idea to consider an extended weekend getaway. 

To commemorate the landing and achievements of Christopher Columbus in the US, a number of cities:

  • Hold festive parades and celebrations with colorful costumes,
  • Have public ceremonies and festivities with music,
  • Host street fairs with plenty of  food and merchandise booths, and
  • Prepare traditional Italian food in honor of Columbus.

However, most states don’t celebrate Columbus Day as an official holiday but rather treat it as a day of observance or recognition. Therefore, many private businesses, shops, retailers, and schools remain open. The states that do celebrate it mandate government offices to close.

Veterans Day 

Since 1938, Veterans Day has been designated a federal holiday by law in the US. It’s celebrated every year on the same date — November 11th. 

This holiday is dedicated to military veterans of the United States Armed Forces and marks the end of World War I. Each year, there is a national memorial ceremony at Arlington National Cemetery (where over 400,000 military servers were buried). 

Every state has Veterans Day as an official holiday. Non-essential government offices are closed on Veterans Day. However, certain public sector and government offices, schools, and some private businesses and banks remain open even though it’s a federal holiday. Nevertheless, most of them provide it as a paid day off.

George Washington’s Birthday

George Washington’s Birthday became a paid federal holiday for federal workers in the District of Columbia in 1879. However, Congress has never declared it a national holiday in all US states. This holiday is celebrated on the 3rd Monday in February to honor the birthday of the first President of the United States, George Washington. 

To commemorate Washington’s birth:

  • The House and Senate read aloud his Farewell Address,
  • Justices of the Supreme Court and high-ranking officers of the Army and Navy join together to listen to the Farewell address,
  • Citizens take part in special wreath-laying ceremonies,
  • Newly naturalized Americans take the oath of citizenship, and
  • Americans take a photo in front of the Lansdowne painting (an iconic portrait of George Washington).

Many government offices, including courts, post offices, public and private schools are closed. Private companies can either choose to remain open or closed. Some companies still operate on George Washington’s Birthday, while others usually decide to provide their staff with paid time off.

Optional holidays 

Some companies also acknowledge the following holidays:

  • Easter. Easter isn’t a federal holiday in the US, however, many companies that are normally open offer it as an optional day off. It falls on the first Sunday following the first full moon after the vernal equinox, which means that it changes dates every year (March 22 – April 25). Since it always falls on a Sunday, some employees might get lucky (e.g. in retail businesses) for receiving a Sunday off. Government employees, on the other hand, work Monday-Friday, so they get a Sunday off anyway.
  • Good Friday. Some states recognize Good Friday as a holiday. Certain private companies may choose not to work, while most retail stores usually close early. Public schools and universities are also closed. On the other hand, federal government offices are open because it’s not considered an actual holiday.
  • Friday after Thanksgiving. The day after Thanksgiving (or Black Friday) has been recognized as a state holiday in about 20 US states. Even though it’s not a federal holiday by itself, many private businesses and state government institutions give an additional day off which allows employees to plan an extended holiday. 
  • Christmas Eve. Christmas Eve has never been declared a federal holiday, but in some states, including Kentucky, Michigan, North Carolina, etc., it’s recognized as a state holiday. Other states, such as Kansas, North Dakota, and Virginia, observe it as a partial holiday. In the remaining US states, Christmas Eve is a normal working day.

New Year’s Eve. New Year’s Eve is not a US federal holiday, but it’s a state holiday in states like Louisiana, Michigan, and Wisconsin. Most educational institutions are closed because the holiday season has already begun. Stores, shops, government offices, and private businesses usually work but have shortened working hours.

💡 Clockify Pro Tip

If you’re scheduled to work on a holiday, you may be wondering whether you can finish your tasks effectively. Here’s how to stay productive:

What are the benefits of providing paid holidays?

As an employee, you probably can’t wait for the holidays to come. 

On the other hand, for business owners, offering paid holidays can be overwhelming because they might feel like the holiday closure will affect their profitability or they could even find it difficult to decide on which holidays to include into their PTO policy.

Nevertheless, paid time off is beneficial not only for your employee’s well-being but also for the overall growth of your business. 

With that in line, below you will find the top benefits of paid holidays both for employees and business owners. These benefits could help you set your mind on whether or not holidays are something you should give closer attention to.

Benefits of paid holidays for employees

A survey by the American Institute of Certified Public Accountants (AICPA) suggests that 80% of workers would choose a job with a strong benefits and perks package instead of a pay raise. 

The number is a clear signal to companies to think about offering a generous employee benefits package if they want to attract and keep talent.

In case you work for a company that offers paid holiday leave, you’re already familiar with the advantages that come with it. However, if you haven’t had the chance, perhaps the following list could help you when considering a new job offer. 

With that in mind, let’s look at the benefits of using paid holidays for employees.

Benefit #1: Paid holidays help you improve your mental wellbeing

Research has shown that 1 in 5 working adults in the US struggle with their mental health each year. This number just indicates that companies should advocate for better mental health care and invest in paid time off. 

In fact, taking time off can immensely benefit an employee’s mental health — it allows them to practice self-care, lower their stress levels, and avoid burnout

Additionally, mental well-being affects not only an employee’s personal life but also their job performance. So, taking a paid holiday gives you time away from the workplace to refresh your mindset and improve your productivity. 

Also, if you’re constantly overwhelmed by work, you might even experience work anxiety. Work anxiety can negatively affect multiple aspects of your life, contributing to:

💡 Clockify Pro Tip

There’s a thin line between being a dedicated employee and being a workaholic. Here’s how to tell if you’re being overworked:

Benefit #2: Paid holidays contribute to improved productivity

When employees work long weeks without taking time off (even for a single day), they might have trouble staying focused and motivated. As a result, their productivity usually decreases and the work quality suffers. 

On the other hand, after they take a day off, employees feel recharged and inspired to finish their tasks within the set deadline.

According to research by Mark Rosekind of Alertness Solutions, time off boosts employee’s performance by 80%, while reaction times of those employees are 40% higher. Since rest can improve employee productivity, certain companies even offer to pay their employees to take a vacation (not a paid vacation time, but a bonus that pays for the whole trip).

Benefit #3: Paid holidays allow for better work-life balance

Taking a paid holiday allows employees to strike a work-life balance that fits their priorities and values. 

Finding the right balance between professional and personal life has never been more important. In fact, a State of the American Workplace report from Gallup indicates that 53% of employees prioritize a workplace that allows them to maintain a healthy work-life balance. They tend to work better after a day off, because it helps them reduce stress, anxiety and depression.

Therefore, if your company offers paid holiday leave, this shows that your well-being matters to them and that they care about their employees’ morale.

Benefit #4: Paid holidays boost employee’s motivation and engagement

Offering paid holidays is an attractive form of motivation for employees. When a company is willing to give employees extra time off (that is included in their salary), they see it as an opportunity to recharge their batteries and rest from the overwhelming work responsibilities. 

Furthermore, time spent away from work enhances employee engagement. Research shows that 70% of employees are more motivated to contribute to the company’s success after they take a one-week or longer vacation. Taking time away from work can positively affect an employee’s engagement and motivation. They come back refreshed, energized, and more motivated to achieve their work-related goals.

Benefit #5: Paid holidays improve team collaboration and relationships

Paid time off can be a great opportunity to practice cross-functionality between team members.

Let’s say that your coworker has taken a paid day off. You’ve been assigned their tasks. Feels frustrating, right?

However, this opportunity allows you to collaborate with other team members, share ideas and skills, and learn something new. On the other hand, the absent employee will be happy that they can rely on coworkers during their absence.

This, in turn, builds stronger relationships between coworkers as they feel more connected with each other. As a result, collaboration can improve employee retention and overall business performance.

Benefits of paid holidays for business owners

Paid time off does not only benefit your employees’ physical and mental health but also you as an employer. Since offering your employees paid holidays directly impacts their work attitude and productivity levels, it’s only logical that including them in your company’s PTO policy could come with a handful of perks for your business too.  

Let’s see how exactly businesses can benefit from offering paid holidays.

Benefit #1: Paid holidays help you improve company reputation

In today’s business world, company reputation is everything. What people think about the way your company treats employees has never been more important. ​​

So, expecting your employees to work on holidays could actually harm your company’s reputation. In fact, a 2020 Accenture survey suggests that 76% of consumers want retailers to remain closed on Thanksgiving Day so employees can spend time with their loved ones. Thus, offering employees a certain number of paid days will positively influence your company culture and reputation. By treating them well, you demonstrate that employee health and well-being matter to you.

Benefit #2: Paid holidays help you get competitive advantage

In a competitive labor market, an attractive paid holiday policy is crucial if you want to attract high-quality talent. 

According to a WorldatWork study, about 88% of business owners consider that giving some form of paid time off helps them stay ahead of the competition. On the other hand, the same study suggests that 63% of employees wouldn’t even consider starting a new job that provides less than 15 days of paid time off.

These statistics suggest that offering competitive benefits can help potential applicants determine whether they should work for your company. Without holiday pay, you risk losing quality applicants. 

To stand out, you need to make sure that your PTO policy and offerings fit well with your employees’ needs. Moreover, showing your employees that you value work-life balance and respect their boundaries and well-being will also minimize employee turnover.

💡 Clockify Pro Tip

Our free PTO policy templates are meant to help both the employer and the employee in accruing and requesting paid leave:

Benefit #3: Paid holidays help you achieve higher company morale

Higher company morale indicates a healthy company culture and a positive work environment. In other words, a company’s morale reflects the level of support, respect, and motivation employees get at work.

In line with that, a study by the American Psychological Association found that: 

  • 68% of working Americans have a more positive work mood following time off, 
  • 66% have more energy, 
  • 57% are more motivated, and 
  • 57% feel less stressed. 

Additionally, 58% were more productive, while 55% reported that their work quality had improved. This research clearly shows the numerous benefits of taking time off.

Giving your employees fully paid holidays signals them that they’re valuable assets to your organization. As a result, they become more motivated, productive, and engaged, which in turn increases their morale.

Benefit #4: Paid holidays promote cultural diversity

Most federally-recognized holidays were designed decades ago without inclusion in mind (before globalization scattered people from different backgrounds across the globe). 

However, today’s workforce includes people from diverse cultural, ethnic, racial, political, and religious backgrounds, so companies should take this fact into consideration when devising their PTO policy. 

Namely, in 2022, around 85% of Americans said they were planning to celebrate Christmas,

while another study suggests that only 63% of American adults self-identify as Christians. 

This means that if your company celebrates only Christian holidays, employees of different faiths or cultural backgrounds may feel excluded. 

Therefore, your PTO policy should promote DEI — diversity, equity, and inclusion. To commemorate holidays respectfully, your company can give time off for religious or cultural celebrations that may not be officially observed. A diverse PTO policy ensures that no one feels excluded from your workplace by fostering a culture of inclusivity.

Benefit #5: Paid holidays improve employee attendance

Paid holidays are one of the most highly valued perks for employees. 

However, consistent leaves and absences can have a damaging impact on a team’s productivity, and overall employee morale. An SHRM survey shows that the percentage of productivity loss in the US is 22.6% for planned employee absenteeism, while unscheduled absenteeism accounts for 36.6%. Scheduled absenteeism (any time off that has been arranged between the employee and employer) allows business owners to plan their workload, and delegate tasks around employees’ absences without any issues.

If employee attendance is not managed properly, coworkers who are often absent from work can be a source of frustration for those who are left to pick up the absent employee’s work. 

On top of that, the employees who showed up for work also need to catch up on their own work. Meetings or deadlines for certain projects may also need to be rescheduled. 

Offering paid holidays to your employees is one way to reduce the frequency of these situations and improve employee attendance. For example, you can offer a paid Easter holiday to minimize absenteeism on that day. 

Having a pre-planned PTO schedule allows you to give specific holidays off and gives you just enough time to decide how to catch up with that work later. 

Improved employee attendance, on the other hand, increases team collaboration and productivity, lowers stress within the workplace, and improves overall business performance.

💡 Clockify Pro Tip

PTO and vacation are often used interchangeably, but they’re not the same. Learn the differences here:

How to track time off in Clockify

Tracking employees’ attendance and time off can bring several benefits to companies. Therefore, it’s essential for businesses to have accurate time and attendance tracking software to help them: 

  • Get a better picture of employee deliverables, 
  • Find out how long certain projects will take, 
  • Reduce unplanned absenteeism,
  • Prevent pay errors and make timely payments,
  • Streamline time off requests,
  • Boost employee attendance and productivity,
  • Monitor vacation days, 
  • Stay compliant with state labor laws, and most importantly,
  • Improve employee morale. 

However, monitoring employee attendance and time off can seem like a daunting task for many businesses. That’s why you should consider automating this process, especially if you’d like to address unscheduled absences and no call no show cases without having to waste time keeping time records. 

By using an automated PTO tracker, such as Clockify, you’ll be able to track your employees’  time off and stay on top of their:

  • Vacation days,
  • Days off for federal holidays,
  • Sick leave, and
  • Other types of leave (unlimited PTO, religious days, etc.)
Clockify time off
Organize and track employee’s time off requests in one single dashboard

You can also check which employees are available and who took paid time off and plan and schedule the workflow accordingly. Furthermore, since time off requests are automated with email notifications, employees don’t have to bog their managers for request approvals. 

FAQ about paid holidays

Are you wondering whether you need to offer paid time off for holidays or give extra pay if your employees work on federally-recognized holidays? If so, take a look at the most frequently asked questions about paid holidays below.

How many paid holidays do most companies give?

Most private businesses in the US usually give their employees about 6 holidays, even though there are 11 federally-recognized holidays per year. The remaining holidays depend on the company policy. 

Here’s a list of the most common paid holidays that employees in the US private sector enjoy:

  • New Year’s Day,
  • Memorial Day,
  • Independence Day,
  • Labor Day,
  • Thanksgiving Day, and
  • Christmas Day.

What are the federally-recognized holidays in the US?

The US government recognizes 11 federal holidays. Most of them are also observed as state holidays. During these paid holidays, most federal government offices are closed. 

The list of federally-recognized holidays includes: 

  • New Year’s Day, 
  • Martin Luther King, Jr., Day, 
  • George Washington’s Birthday, 
  • Memorial Day, 
  • Juneteenth, 
  • Independence Day, 
  • Labor Day, 
  • Columbus Day, 
  • Veterans Day,
  • Thanksgiving Day, and 
  • Christmas Day.

Government employees in Washington, DC, have 1 additional paid holiday (Inauguration Day), which is observed every 4 years on January 20 after a US presidential election.

Are employers required by law to give time off for the federally recognized holidays?

Even though federal holidays are declared by the US federal government, private companies are not legally obliged to give paid time off during these holidays. 

Since public sector workers are entitled to federally-recognized holidays, most government offices remain closed during federal holidays. 

However, if you work for a private employer, it’s entirely up to their own judgment to decide whether you will work on those days. Still, many private businesses offer some or all federal holidays, regardless of the fact that they’re not required by law to do so.

Do employees get time off for religious holidays?

US employers are not required by law to offer paid time off for religious holidays. 

However, according to Title VII of the Civil Rights Act of 1964, they must reasonably accommodate the employee’s request about religious observances (holidays that are not in accordance with the company’s PTO schedule). 

When an employee asks for time off during a religious holiday, the employer is obligated not to discriminate on the basis of religion, and should provide a day off unless doing so places a burden on the operation of the business such as:

  • Lack of necessary staffing, 
  • Security or health risks, or
  • Increased costs.

If an employee’s day off does not interfere with the company’s business, co-workers must voluntarily substitute or exchange shifts in favor of the employee’s religious belief.

Are employees entitled to additional pay for working on a holiday?

Employees working in federal offices do not work on federally-recognized holidays, and they are compensated for it. 

However, according to the Fair Labor Standards Act, private employers are neither obliged by law to provide time off during federal holidays nor do they need to pay for time not worked.

But even though there is no specific law that dictates holiday pay, many private companies decide to compensate employees for working on those days by offering 1.5 times or even double pay (in some states).

What are floating paid holidays?

A floating holiday allows employees to take a paid day off whenever they want. 

In other words, they can pick which days they want to take off (e.g., religious or cultural holidays, special events, or birthdays).

A floating holiday is a combination of:

  • Additional paid time off, which is part of employee’s compensation and benefits package,
  • Public holidays that aren’t celebrated on the same date every year, or
  • Alternative days for public holidays.

In most states, except California, employers are not required by law to provide floating holidays for their employees. The choice of offering floating holidays is usually governed by the employer’s policy. 

For example, certain companies allow employees to use paid floating holidays for specific events, personal/family matters, or when they’ve spent all their paid time off. Nevertheless, most employers’ policies state that floating holidays can be used at any time during the year upon the employer’s approval.

Final words: Paid holidays are a great way to show employees that you care

As we already mentioned, under the FLSA act, private employers are not legally required to pay employees for hours they didn’t work. 

However, since most employees usually have second thoughts about working for a company that doesn’t offer paid holidays as part of their benefits package, it has become a common practice for employers to provide paid time off during federal holidays.

So, if you have been in two minds about offering your employees PTO for holidays, perhaps the wide range of benefits we’ve discussed can help you make up your mind. 

On top of helping your company stand out in the eyes of potential candidates, offering paid holiday leave is a perfect way of showing your current employees appreciation. Knowing they’re encouraged to take time off for holidays, employees will be more likely to stay loyal to the company that promotes positive employee morale and prioritizes their well-being. 

Still, before you provide your employees with PTO for holidays, make sure to clearly state the exact federal holidays your company will offer paid time off for, indicate whether employees are entitled to additional pay for working on those holidays, and you’ll be all set. 

✉️ How common is it for your company to offer paid holidays as part of your employee’s benefits package? What paid holidays does your employer typically offer you?Let us know at blogfeedback@clockify.me so that we make sure we’re not missing out on anything. And, if you liked this blog post, share it with someone you think would benefit from reading it.

AleksandraJakimoska Churlinov
Aleksandra  Jakimoska Churlinov

Aleksandra J. Churlinov is a productivity author and researcher at Clockify. With the ability to work remotely for the past couple of years, she’s able to create a flexible schedule and take care of work and personal responsibilities. In her previous career, she explored various writing topics, from real estate to health and lifestyle. Fueled by her passion to understand every aspect of time management and productivity, she’s always eager to build her knowledge and stay tuned with the latest time management trends and techniques to help you organize your day and prioritize tasks in order to improve your work-life balance.

FREE FOREVER • UNLIMITED USERS

Free time tracker

Time tracking software used by millions. Clockify is a time tracker and timesheet app that lets you track work hours across projects.

Clockify time tracker
Play Video Button
Closing video