What is a federal holiday?
A federal holiday is a calendar date designated by the United States Congress in Title V of the United States Code (5 U.S.C. § 6103) on which non-essential U.S. federal government offices are closed and federal employees receive paid leave. These holidays commemorate significant events, historical figures, or cultural observances in American history and are observed primarily by federal institutions, employees, and the District of Columbia.
The United States recognizes 11 annual federal holidays: New Year's Day, Birthday of Martin Luther King Jr., Washington's Birthday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day. When a federal holiday falls on a Saturday, most federal employees observe it on the preceding Friday; when it falls on a Sunday, they observe it on the following Monday.
Related terms: public holiday, national observance, paid leave, federal workforce
How are federal holidays established?
Federal holidays are established through an act of Congress. A federal holiday bill must be proposed in the U.S. Senate and House of Representatives, pass both chambers, and be signed into law by the President. The authority to create holidays for federal institutions and employees is granted to Congress under federal law.
The first federal holidays were established in 1870, when Congress created four holidays for federal employees in Washington, D.C.: New Year's Day, Independence Day, Thanksgiving Day, and Christmas Day. This coverage was extended to all federal employees across the country in 1885. Since then, additional holidays have been added through congressional action, with Juneteenth National Independence Day becoming the newest federal holiday in 2021 when President Joe Biden signed it into law on June 17, 2021.
Do federal holidays apply to private employers?
No, federal holidays do not legally require private employers to close or provide time off to employees. Congress only has authority to create holidays for federal institutions, federally-owned properties, federal employees, and the District of Columbia. Private-sector employers are not bound by federal holiday designations under the Fair Labor Standards Act (FLSA), which does not mandate holiday pay or time off.
Many private employers choose to observe federal holidays by closing operations or offering paid time off as part of their employee benefits package. This practice helps businesses remain competitive in the job market and aligns their schedules with government offices, banks, and financial markets, which typically close on federal holidays. According to the Bureau of Labor Statistics, approximately 97 percent of civilian workers in private industry receive paid holidays, with the average being around 8 days per year, though the specific days vary by employer.
What happens when a federal holiday falls on a weekend?
When a federal holiday falls on a Saturday, most federal employees observe the holiday on the preceding Friday. When a federal holiday falls on a Sunday, most federal employees observe it on the following Monday. This practice is established in 5 U.S.C. 6103(b) for Saturday holidays and Section 3(a) of Executive Order 11582 (February 11, 1971) for Sunday holidays.
This "in lieu of" determination ensures that federal employees who work a standard Monday through Friday schedule receive the full benefit of the holiday. Private employers may or may not follow this practice, depending on their individual policies. Federal employees who are regularly scheduled to work on weekends and are required to work on the actual holiday date are entitled to holiday premium pay.
Are private employees entitled to extra pay for working on federal holidays?
Under federal law, private employees are not entitled to extra pay for working on federal holidays. The Fair Labor Standards Act does not require private employers to provide holiday premium pay, time off, or any special compensation for work performed on federal holidays. Private employers set their own holiday policies and compensation practices.
Some states have enacted laws requiring premium pay for work on certain holidays. Massachusetts and Rhode Island, for example, maintain "blue laws" that restrict Sunday and holiday operations or require premium pay for retail workers. Many private employers voluntarily offer holiday premium pay at 1.5 times or 2 times the regular hourly rate to secure coverage on major holidays, or they provide paid time off as an employee benefit, but these practices are not federally mandated.
Which federal holidays are most commonly observed by private employers?
The six federal holidays most commonly observed by private employers are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. These holidays are widely recognized for their cultural significance and are often the minimum set of paid holidays offered by private companies. Many retail stores and restaurants close or operate on reduced hours during Thanksgiving and Christmas, while remaining open on less widely observed federal holidays.
Larger or more mature organizations often add two to four additional holidays: Martin Luther King Jr. Day, Juneteenth, Veterans Day, and the day after Thanksgiving (sometimes called "Black Friday"). Some federal holidays, such as Columbus Day, Washington's Birthday (Presidents' Day), and Veterans Day, are less commonly observed by private employers, with businesses often operating normally on these dates.
How do federal holidays differ from state holidays?
Federal holidays are designated by the United States Congress and apply specifically to federal employees and federal government offices, while state holidays are designated by individual state legislatures and apply to state government employees and offices within that state. There are no true national holidays in the United States that legally require all businesses and public services nationwide to close, as each state has the authority to determine its own legal holidays.
States can recognize other days as state holidays that are not federal holidays. For example, Texas recognizes all federal holidays except Columbus Day and adds state-specific holidays such as Texas Independence Day (March 2) and the day after Christmas. Some states have also replaced Columbus Day with Indigenous Peoples' Day or other observances. While many states choose to align their holiday calendars with federal holidays, they are not required to do so.
What is the difference between a federal holiday and a religious holiday?
Federal holidays are secular by law and recognized for their cultural significance or historical importance to the United States, not for their religious aspects. Religious holidays are observances specific to particular faith traditions, such as Easter and Christmas for Christians, the High Holy Days for Jews, Ramadan for Muslims, Vesak for Buddhists, and Diwali for Hindus. Federal holidays are established in keeping with the First Amendment's separation of church and state.
While Christmas Day is a federal holiday, it is recognized for its widespread cultural observance in the United States rather than its religious meaning. In the 1999 case Ganulin v. United States, the Western Division of the United States District Court ruled that Christmas Day's federal status does not violate the Establishment Clause of the Constitution because "the Christmas holiday has become largely secularized" and the government is "doing no more than recognizing the cultural significance of the holiday." Employers are not legally required to close for religious holidays but may need to provide reasonable accommodations under equal employment laws.
What is Inauguration Day and how is it observed?
Inauguration Day is a federal holiday that occurs every four years on January 20 following a presidential election. This holiday is designated in section 6103(c) of title 5 of the United States Code and applies specifically to federal employees who work in the Washington, D.C., metropolitan area, including the District of Columbia, Montgomery or Prince George's Counties in Maryland, Arlington or Fairfax Counties in Virginia, and the cities of Alexandria or Fairfax in Virginia.
Federal employees in these areas who are regularly scheduled to work on Inauguration Day receive a paid holiday. There is no "in lieu of" holiday for employees who are not regularly scheduled to work on that day. When Inauguration Day falls on a Sunday (as it did in 2013 when it coincided with Martin Luther King Jr. Day), it is observed on Monday, January 21. When it falls on a Saturday, only employees scheduled to work that Saturday receive the holiday; there is no substitute weekday observance. Inauguration Day is not considered a federal holiday equivalent to the 11 annual holidays for employees outside the Washington, D.C., area.
How do federal holidays compare to similar concepts?
Federal holidays are often compared to 3 related concepts:
| Related Term | Key Distinction | Usage Context |
|---|---|---|
| National Holiday | National holidays are cultural observances widely celebrated but not legally designated; federal holidays are established by Congress with legal status | Informal celebrations like Halloween or Valentine's Day |
| State Holiday | State holidays are designated by individual state legislatures for state employees; federal holidays apply to federal employees nationwide | State-specific observances like Texas Independence Day |
| Religious Holiday | Religious holidays are faith-based observances; federal holidays are secular by law to maintain separation of church and state | Easter, Passover, Ramadan, or Diwali celebrations |
Federal Holiday vs. National Holiday
A federal holiday is a date officially designated by Congress with legal status requiring federal offices to close and federal employees to receive paid leave. A national holiday is a cultural observance widely celebrated across the country but without legal designation or requirements. Halloween, St. Patrick's Day, and Valentine's Day are popular traditions many people refer to as national holidays, but they are not officially recognized by federal law and do not mandate closure of government services or paid leave for workers.
Federal Holiday vs. State Holiday
A federal holiday is established by the United States Congress and applies to federal employees and federal government offices across the nation. A state holiday is designated by an individual state legislature and applies only to state government employees and offices within that particular state. States are not required to recognize federal holidays and can designate their own unique holidays. For example, Texas recognizes most federal holidays but not Columbus Day, while adding state-specific observances like Texas Independence Day on March 2.
Federal Holiday vs. Religious Holiday
A federal holiday is secular by law, established to commemorate historical events or cultural significance without religious basis, in accordance with the First Amendment's separation of church and state. A religious holiday is an observance specific to a particular faith tradition, such as Easter for Christians, Passover for Jews, or Ramadan for Muslims. While Christmas Day is a federal holiday, the U.S. District Court ruled in Ganulin v. United States (1999) that its federal status does not violate constitutional principles because "the Christmas holiday has become largely secularized" and the government recognizes its cultural significance rather than its religious meaning.