Holiday pay laws by state: A guide for employers in 2026
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Key Takeaways
Federal law does not require private-sector employers to provide paid holidays or premium pay for holiday work; holiday pay is a voluntary benefit governed entirely by employer policy, contracts, or collective bargaining agreements.
Rhode Island is the only U.S. state that mandates time-and-a-half premium pay for private employees who work on state public holidays or Sundays, under R.I. Gen. Laws § 5-23-2.
Massachusetts Blue Laws restrict when retailers and non-retail businesses can operate on specific holidays, and employees at covered businesses have the right to refuse holiday work without retaliation.
Once a holiday pay policy is documented in an employee handbook, offer letter, or union contract, it becomes legally binding, and inconsistent application can expose employers to breach of contract or discrimination claims.
Exempt employees must receive their full weekly salary even if the business closes for a holiday, while non-exempt employees are only paid for hours actually worked unless a state law or employer policy provides otherwise.
This guide covers the federal framework, the two states with actual legal requirements (Rhode Island and Massachusetts), how holiday pay rules differ for exempt versus non-exempt employees, what the 2026 federal holiday schedule looks like, a state-by-state overview, and a sample holiday pay policy you can customize for your own handbook.
What is holiday pay?
Holiday pay is compensation employees receive in connection with a recognized holiday: either paid time off when the business closes, or a premium rate (typically time-and-a-half) for hours actually worked on that day. For private employers, neither form is federally mandated. Holiday pay is a discretionary benefit, but once committed to in a written policy or employment contract, it becomes a binding legal obligation.
Federal holidays in 2026
The U.S. government recognizes 11 federal holidays in 2026. These apply to federal employees and set the baseline calendar that most private employers also follow, though private businesses are not legally required to observe them:
Holiday | 2026 Date |
New Year's Day | Thursday, January 1 |
Martin Luther King Jr. Day | Monday, January 19 |
Presidents' Day (Washington's Birthday) | Monday, February 16 |
Memorial Day | Monday, May 25 |
Juneteenth National Independence Day | Friday, June 19 |
Independence Day | Saturday, July 4 (observed Friday, July 3) |
Labor Day | Monday, September 7 |
Columbus Day / Indigenous Peoples' Day | Monday, October 12 |
Veterans Day | Wednesday, November 11 |
Thanksgiving Day | Thursday, November 26 |
Christmas Day | Friday, December 25 |
Note: Independence Day falls on a Saturday in 2026, so the federal observed date shifts to Friday, July 3. Inauguration Day is observed every four years for federal employees in the Washington D.C. area (next: January 20, 2029).
Holiday pay rules and regulations by sector
The FLSA does not require private employers to offer paid time off for any holiday, federal or otherwise. Holiday pay is customary but legally discretionary for most U.S. employers. The rules vary, however, depending on whether your employees are in the public or private sector and whether they're classified as exempt or non-exempt.
Holiday pay for federal employees
Federal government employees are entitled to paid time off for all 11 federal holidays. If a federal employee is required to work on a federal holiday, they receive holiday premium pay: an additional full day's pay on top of their regular pay for that day. Federal employees working on a holiday may not work more than 8 hours.
Holiday pay for private sector employees
Private companies have no federal obligation to offer paid holidays. Holiday pay is a benefit offered at the employer's discretion to attract and retain talent. Most private employers still choose to observe some combination of major holidays, with the most commonly offered paid days being:
New Year's Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day
Holiday pay for exempt vs. non-exempt employees
Exempt employees are salaried white-collar workers exempt from overtime pay under the FLSA. They must receive their full salary for any week in which they perform work, even if the business closes early or for a holiday. If the business closes for an entire workweek, payment isn't required. Employers may require exempt employees to use accrued PTO for holidays; if no PTO remains, the employer must still pay their full salary for any week they work.
Non-exempt employees are hourly workers entitled to overtime and minimum wage protections. They have no federal entitlement to pay for days they don't work. If they work on a holiday, they're paid their normal hourly rate; overtime only applies if total hours exceed 40 in that workweek.
Rhode Island is the only U.S. state requiring employers to pay non-exempt employees a premium rate (time-and-a-half) for holiday and Sunday work, independent of overtime rules.
Massachusetts Blue Laws
Massachusetts does not require premium holiday pay, and as of January 1, 2023, the state's former retail premium pay requirement for Sundays and certain holidays was fully eliminated following a phase-out under the 2018 Grand Bargain legislation. Employers who previously maintained premium pay policies under those rules should update their handbooks if they have not already done so.
Massachusetts Blue Laws (Massachusetts General Laws Chapter 136) still restrict when certain businesses can require employees to work on specific holidays. The rules depend on business type:
Retailers: Employees cannot be required to work on Christmas or Thanksgiving. On Columbus Day, retailers may open at noon; on Veterans Day, after 1 p.m. Retailers can open on New Year's Day, Memorial Day, Juneteenth, Independence Day, and Labor Day, but employees have the right to refuse to work those days without retaliation.
Non-retail and manufacturing businesses: These businesses must obtain a permit from the local police department to operate on Sundays and the following Massachusetts public holidays:
Memorial Day
Independence Day
Labor Day
Columbus Day (before noon)
Veterans Day (before 1 p.m.)
Thanksgiving Day
Christmas Day
Employers may operate without restriction (and without a permit) on MLK Day, Presidents' Day, Evacuation Day, Patriots' Day, and Bunker Hill Day. Always verify current rules with the Massachusetts Attorney General's office, as the Blue Laws are subject to legislative change.
Rhode Island premium pay
Rhode Island is the only U.S. state that mandates private employers pay a premium rate for holiday work. Under R.I. Gen. Laws § 5-23-2, most employees who work on a state public holiday or Sunday must receive time-and-a-half, regardless of total weekly hours worked. Employees also have the right to refuse holiday and Sunday work without penalty (except in 24/7 manufacturing operations).
Rhode Island public holidays covered by the premium pay requirement include:
New Year's Day
Memorial Day
Juneteenth
Independence Day
Victory Day (second Monday in August, unique to Rhode Island)
Labor Day
Indigenous Peoples'/Columbus Day
Veterans Day
Thanksgiving Day
Christmas Day
Exempt employee groups (including hotel and restaurant workers, healthcare workers, attorneys, accountants, and supervisory employees) are not covered by the premium pay requirement. Rhode Island retail employers must also guarantee workers a minimum of four hours of employment on any holiday they're required to work.
Holiday pay laws by state
Since the FLSA leaves holiday pay entirely to employer and state discretion, rules vary significantly across the country. The table below summarizes the legal landscape for all 50 states and D.C. In all states not listed as having specific requirements, holiday pay is fully at the employer's discretion.
Holiday pay policy sample
If you're building a holiday pay policy for your employee handbook, here's a customizable template. Remember: once this policy is in writing and distributed to employees, it becomes a binding commitment.
[Company Name] Holiday Pay Policy
Observed holidays
[Company Name] observes the following paid holidays each year:
New Year's Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day
Full-time employees
Full-time employees are entitled to their regular day's pay for each observed holiday, provided they are in active employment status. No PTO is deducted for company-designated holidays.
Part-time employees
Part-time employees receive holiday pay proportionate to their regularly scheduled hours on that day (e.g., if normally scheduled for 4 hours, they receive 4 hours of holiday pay).
Working on a holiday
Employees required to work on a company holiday will receive [regular pay / time-and-a-half / an alternate day off, select one] in addition to their standard holiday pay entitlement. Advance scheduling is required; employees will be notified at least [X days] in advance.
Holiday on a weekend
If a designated holiday falls on a Saturday, the preceding Friday is observed. If it falls on a Sunday, the following Monday is observed.
Contractors and temporary workers
Independent contractors and temporary workers engaged through a staffing agency are not eligible for paid holidays under this policy. Their arrangements are governed by their individual contracts.
Manage holiday pay seamlessly with Rippling
Holiday pay compliance gets complicated fast, especially if you have employees across multiple states, a mix of exempt and non-exempt workers, or different policies for full-time versus part-time staff. Rippling Payroll automatically accounts for state-specific rules like Rhode Island's premium pay requirements, so the right rates are applied without manual intervention.
With Rippling Time & Attendance, you can configure your company's holiday calendar directly in the platform so employees see upcoming holidays in their shared calendar, managers can plan staffing around them, and your headcount planning stays accurate year-round. Approved time-off syncs directly to payroll with no double entry and no missed payroll mistakes.
Frequently Asked Questions
Is holiday pay required by law in the United States?
No. Federal law does not require private employers to provide paid holidays or premium pay for holiday work. The Fair Labor Standards Act (FLSA) treats holidays like any other workday: if an employee doesn’t work, there is no legal obligation to pay them. If an employee works on a holiday, there is no federal requirement to pay a premium rate unless the additional hours push them past 40 in a workweek, triggering overtime obligations. Holiday pay is entirely a voluntary benefit, governed by employer policy, employment contracts, or collective bargaining agreements. Two exceptions exist at the state level: Rhode Island requires most private employers to pay time-and-a-half for work on state public holidays and Sundays, and Massachusetts imposes work restrictions (but not premium pay) on certain holidays through its Blue Laws.
Which states require holiday premium pay?
Rhode Island is the only U.S. state that mandates holiday premium pay for private-sector employees. Under R.I. General Laws § 5-23-2, most employees who work on a recognized state public holiday or Sunday must be paid time-and-a-half (1.5x their regular rate), regardless of whether they’ve worked 40 hours that week. Employees also have the right to refuse holiday or Sunday work without penalty, unless they work for a manufacturing company that operates every day. The premium pay requirement does not apply to certain exempt groups including doctors, dentists, attorneys, accountants, supervisory employees, hotel and restaurant workers, and healthcare facility staff. Rhode Island also uniquely observes Victory Day (second Monday in August), which is covered by this premium pay obligation.
How do Massachusetts Blue Laws affect holiday work requirements?
Massachusetts does not require premium pay for holiday work, but its Blue Laws restrict when certain businesses can operate on holidays. Blue laws divide businesses into three categories: retailers, non-retail businesses, and manufacturers, with different rules for each. Retailers are prohibited from having employees work on Christmas and Thanksgiving. On Columbus Day, retail stores may open at noon; on Veterans Day, after 1 p.m. Retailers may open on New Year’s Day, Memorial Day, Juneteenth, Independence Day, and Labor Day, but employees have the right to refuse to work on those days without retaliation. Non-retail and manufacturing businesses generally require a police department permit to operate on Sundays and certain holidays. Businesses that open on days when employee refusal rights apply cannot penalize workers who choose not to work. The full rules are governed by Massachusetts General Laws Chapter 136 and should be verified with the Massachusetts Attorney General’s office for the most current guidance.
How does holiday pay work for exempt vs. non-exempt employees?
Exempt employees (salaried white-collar workers exempt from overtime) are entitled to their full regular salary for any week in which they work, even if the business closes for a holiday. If the business closes for a full workweek, you generally don’t need to pay exempt employees. If it closes for a partial week, the exempt employee must still receive their full salary. You can require exempt employees to use accrued PTO for holidays, but if they have no PTO available, you must still pay their full salary for that week. Non-exempt employees (hourly workers) have no federal entitlement to pay for days they don’t work. If they work on a holiday, they must be paid their regular rate for those hours. If working on the holiday pushes their weekly hours over 40, overtime rules apply to the excess hours. Rhode Island is the exception — non-exempt employees working on state holidays there must receive time-and-a-half regardless of total weekly hours.
Can employers require employees to work on holidays?
Yes. In most U.S. states, private employers can require employees to work on holidays unless a specific law or contract says otherwise. There is no general federal right to refuse holiday work. However, there are some important exceptions. In Rhode Island, employees have the right to refuse to work on Sundays and public holidays without penalty — except in manufacturing companies that operate seven days a week. In Massachusetts, employees at retailers and certain other businesses have the right to refuse work on specific holidays covered by the Blue Laws (such as New Year’s Day, Labor Day, and Juneteenth), but can be required to work on unrestricted holidays. Additionally, if a collective bargaining agreement or employment contract specifies that holidays are non-working days, the employer must honor that. Title VII also requires employers to provide reasonable accommodations for employees who observe religious holidays that conflict with their work schedule.
When does holiday pay become legally required for an employer?
When holiday pay becomes contractually obligated — through a written policy, employment agreement, or union contract — it must be honored even though it’s not required by law. Holiday pay becomes mandatory for your business in three situations: (1) Your employee handbook or written policy explicitly promises paid holidays; (2) An offer letter or employment contract commits to paid holiday benefits; (3) A collective bargaining agreement specifies holiday pay terms. In these cases, failing to provide the promised holiday pay could expose you to breach of contract claims, wage complaints with your state labor department, or civil litigation. This is why it’s critical to draft holiday pay policies carefully — once you’ve made the promise in writing, you’re legally bound to keep it consistently. It’s also worth noting that inconsistent application of holiday pay (e.g., giving it to some employees but not others in the same job classification) can expose you to discrimination claims.
What are the 11 federal holidays in 2026?
There are 11 federal holidays in 2026 recognized by the U.S. government: New Year’s Day (Jan 1), Martin Luther King Jr. Day (Jan 19), Presidents’ Day (Feb 16), Memorial Day (May 25), Juneteenth (Jun 19), Independence Day (Jul 4, observed Jul 3), Labor Day (Sep 7), Columbus Day (Oct 12), Veterans Day (Nov 11), Thanksgiving (Nov 26), and Christmas Day (Dec 25). When a federal holiday falls on a Saturday, federal employees observe it on the preceding Friday. When it falls on a Sunday, it’s observed the following Monday. In 2026, Independence Day falls on a Saturday, so the federal observed date is Friday, July 3. These holidays apply to federal government employees and many federal contractors. Private-sector employers are not required to observe them, but most use this calendar as the baseline for their own company holiday schedules.
Do employers have to accommodate religious holidays?
Federal law does not require you to pay contractors for holidays — they are paid only for work performed, per your contract terms. However, what you must do is provide reasonable accommodations under Title VII for employees (not contractors) who observe religious holidays. This typically means allowing the employee to swap shifts, take unpaid leave, or use PTO for their religious observance. You cannot discipline, demote, or terminate an employee for taking time off to observe a sincerely held religious holiday unless granting the accommodation creates an undue hardship for your business. If you operate in multiple states, also check state equivalents of Title VII, which may impose broader accommodation requirements. For union employees, holiday provisions in the collective bargaining agreement govern; those terms are negotiated and must be followed.
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Author
Vanessa Kahkesh
Responsable du marketing de contenu, RH
Vanessa Kahkesh est rédactrice marketing pour les RH. Elle aime faire naître des conversations à l’intersection des personnes, de la stratégie, et de la culture d’entreprise. Chez Rippling, elle est responsable de la création de contenus axés sur les RH. Vanessa a cultivé ses compétences en matière de marketing, de storytelling et de croissance en occupant des rôles dans le marketing produit, dans le community management et dans des start-ups. Elle a fait partie de l’équipe marketing produit de Replit et participé à la fondation de STUDENTpreneurs, une plateforme communautaire globale pour les étudiants fondateurs. Son expérience interdisciplinaire, du storytelling à l’image de marque en passant par les opérations, lui apporte un regard unique sur les contenus RH : elle crée un pont entre leurs aspects techniques et les histoires vécues.
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