How Business Holiday Schedules Work
Private businesses in the United States are not legally required to observe federal, state, or religious holidays. Employers determine which holidays to recognize based on company policy, operational needs, and industry practices.
*For payroll and scheduling purposes, when a holiday falls on a weekend it is often observed on the nearest weekday — typically Friday for Saturday holidays and Monday for Sunday holidays. Observed dates may vary by employer.
Additional Observed Holidays
Most employers choose to follow the federal holiday schedule to align with bank closures and industry standards. Many employers offer additional "floating holidays" or observe dates such as:
- New Year's Eve
- Presidents' Day
- Juneteenth
- Easter
- Columbus Day
- Veterans Day
- Christmas Eve
Observed dates may vary by employer, depending on company policies, location, and any applicable labor agreements.
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Business Holidays FAQs
Frequently asked questions about business holidays
Q1: Are business holidays the same as federal holidays?
A: No. While businesses can choose to align with the federal holiday schedule, many private employers choose to remain open or observe different dates entirely, such as the day after Thanksgiving.
Q2: Is 'Holiday Pay' higher than regular pay?
A: Under the FLSA, private employers are not required to pay a premium for holiday work unless it puts the employee over 40 hours for the week. Paid holiday leave is generally a matter of agreement between an employer and employee.
Q3: Which holidays should my business observe?
A: Most U.S. businesses observe the 'Standard 7' holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, and Christmas Day.
Q4: What is a Floating Holiday?
A: A floating holiday is a flexible day off provided by an employer that employees can use for religious observances, birthdays, or other personal needs not covered by the standard holiday schedule.
Redcort Software Inc. assumes no liability and makes no warranties on or for the information contained on these pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.