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Is Holiday Pay Required by Law? Rules for Hourly Workers

No federal law requires holiday pay or extra pay for working a holiday. What the FLSA says, what states add, a worked example at $18 an hour and what to do if you are shorted.

The short answerNo federal law requires holiday pay. The FLSA does not require pay for holidays you do not work, and it sets no extra rate for working one. Holiday pay comes from your employer's policy or your contract. Only a few states add rules, so check your state labor department.

Is holiday pay required by law? For most hourly workers in the US, no. No federal law makes an employer pay you for a holiday you do not work, and none makes it pay extra when you do work one. The U.S. Department of Labor says these benefits are a matter of agreement between you and your employer.

So the answer for your job sits in your offer letter, the employee handbook, a union contract or the agency's pay policy. If none of those mentions holidays, you are owed your normal rate for the hours you work, plus overtime when you earn it.

What is the federal rule on holiday pay?

The Fair Labor Standards Act (FLSA) sets the federal minimum wage and overtime. It does not require payment for time not worked, and it names vacations and holidays as examples. It also does not set a higher rate for a holiday shift. A Thanksgiving shift and a Tuesday shift are the same hours to the FLSA.

The one federal exception is government contract work. Some service contracts and construction contracts carry wage determinations that include holiday pay for specific job classifications. If you work a federal contract, ask which wage determination covers your role. Everyone else is on their employer's policy.

Three different things people call holiday pay

A paid day offYou do not work the holiday and still get paid for it. Not required by federal law. Comes from policy or contract, and often only for full-time staff.
A holiday premiumExtra pay, often time and a half or double time, for working on the holiday. Not required by federal law. Some employers offer it to fill hard shifts.
OvertimeRequired by federal law once you pass 40 hours in a workweek, holiday or not. Some states add a daily limit. This is the only extra pay you can count on.

Is holiday pay time and a half?

Only if your employer says so. Time and a half for a holiday is a company perk, not a legal rate. The legal time and a half is overtime: hours over 40 in a workweek under the FLSA, and in California hours over 8 in a day as well.

California spells this out. Its Labor Commissioner says hours worked on holidays, Saturdays and Sundays are treated like hours worked on any other day, unless the employer has a policy or practice of paying a premium. Overtime is decided by hours worked, not by the date.

Working Christmas Day pays time and a half by law.No federal law sets a holiday rate. You get your normal rate unless a policy or contract says more.Source: Work hours: holidays
A long holiday weekend counts as overtime.Overtime is about hours, not dates. Weekend and holiday hours count the same as any other hours toward the 40-hour week.Source: Holidays (frequently asked questions)
If the company gives paid holidays, it has to give them to everyone.The policy decides who qualifies. Many limit paid holidays to full-time staff, but once the policy exists, it has to be applied the way it is written.

Which states mandate holiday pay?

Almost none. Most states follow the federal line: no paid holidays, no premium for working one. California says state law does not require paid holidays or a holiday premium. Illinois says an employee is not entitled to holiday pay by law. Where a state does add a rule, it is narrow, so check your state labor department's website rather than a general list.

What a state can do is change your overtime math. California's daily overtime means a 10-hour holiday shift earns 2 hours at time and a half even if your week stays under 40. A few other states have daily rules. Your state labor department page on overtime is the place to confirm yours.

Not legal adviceThis page explains the general rules and links to the official sources. It is not legal advice. For your own case, read your written policy and contact your state labor department.

What is holiday pay for $18 an hour?

It depends on which kind of holiday pay you are talking about. Here is an 8-hour shift at $18 an hour, under each arrangement. Only the overtime row is set by law; the other two exist only if your employer's policy gives them.

Holiday pay on an 8-hour shift at $18 an hour
ArrangementRateYou getRequired by law?
Paid day off, not worked$18 x 8$144No. Policy or contract only
Worked, straight pay$18 x 8$144Yes. Your normal wage for hours worked
Worked, time and a half$27 x 8$216No. Only if your employer's policy gives it
Worked, hours past 40 in the week$27 per overtime hour$27 for each hour over 40Yes. FLSA overtime
Source: Work hours: holidays · As of Nov 2026

What happens if I don't get holiday pay?

First find out what you were promised. If nothing in writing mentions holiday pay, there is usually nothing to claim beyond your normal wages and overtime. If a policy or contract does promise it, you have a wage claim, and a written policy is what the labor department will ask to see.

Steps to take
  1. Read the written policy

    Offer letter, handbook, agency pay sheet or union contract. Note which holidays it names and who qualifies.
  2. Check the pay stub for overtime

    Count your hours for the workweek. Anything over 40 (or over 8 in a day in California) must be paid at time and a half whatever the policy says.
  3. Ask in writing

    Email payroll or your agency contact with the date, the hours and the policy line you are relying on. Keep the reply.
  4. File with your state labor department

    If promised holiday pay or legal overtime is still missing, file a wage claim with your state labor department, or with the U.S. Department of Labor for federal overtime.

Is Christmas Eve or New Year's Eve a paid holiday?

Not by law. Neither day is a federal holiday. The federal list for 2026 runs from New Year's Day to Christmas Day and does not include December 24 or December 31. Even when a federal order closes government offices on Christmas Eve, that applies to federal employees only. Private employers decide for themselves.

For bars, restaurants and events, those two nights are some of the busiest shifts of the year. The pay you can count on is your hourly rate and overtime; a premium is a bonus some employers add to fill the schedule. If you are paid as a contractor instead of an employee, read W-2 vs 1099 for event staff first, because overtime only applies to employees. And if the event adds a service charge, that is not a tip and may not reach you; see service charge vs tip. Holiday shifts are listed on the jobs board through December.

Questions people ask

Because they do not have to. With no federal requirement, holiday pay is a cost a company chooses to take on, and many hourly, seasonal and agency jobs leave it out or limit it to full-time staff.

Sources1Work hours: holidays — U.S. Department of Labor, 20262Holidays (frequently asked questions) — California Labor Commissioner's Office (DLSE), 20263Holiday FAQ — Illinois Department of Labor, 20264Federal holidays — U.S. Office of Personnel Management, 2026