Federal Holidays

What are Federal Holidays?

Federal holidays in the United States are specific days when the federal government closes all non-essential operations and grants employees paid time off. Established under Title V of the U.S. Code (5 U.S.C. §6103), these holidays commemorate major events, people, and milestones in American history and culture. 

On these days, government offices, federal courts, and most public services suspend their operations. Many banks, post offices, and schools also close, though they aren’t legally mandated to do so. 

Private sector practices vary. Some employers close on all federal holidays; others select a few, while essential industries (like healthcare, hospitality, and retail) often remain open year-round. 

While federal law doesn’t require private employers to provide paid time off, many choose to offer holiday pay or compensatory time for employees working on these days. 

Note:

If a holiday falls on Saturday, it’s typically observed on the preceding Friday and if it falls on Sunday, the following Monday becomes the observed holiday.

In addition to the federal schedule, individual states and cities may designate their own holidays to recognize regional figures or events, like César Chávez Day in California or Patriots’ Day in Massachusetts. 

How Many Federal Holidays Are There in 2025?

In 2025, the United States observed 11 federal holidays, each honoring a pivotal person, event, or cultural milestone. 

Here’s the complete list of the 2025 federal holidays: 

Special Notes:

* Inauguration Day is observed only by federal employees in the Washington, D.C. area every four years following a presidential election (as defined in 5 U.S.C. §6103(c)).

** Washington’s Birthday is the official federal name for the holiday often referred to as Presidents’ Day in most states.

Are Federal Holidays Paid?

Federal holidays are automatically paid for federal employees, but in the private sector, pay depends on the company’s policy. Federal law doesn’t require private companies to provide paid time off on these days. 

Here’s how holiday pay works across different sectors: 

Federal Employees

Yes, federal employees receive paid time off for all designated federal holidays listed under Title 5 of the U.S. Code (§6103). This includes 11 standard holidays and Inauguration Day (for eligible employees in the Washington, D.C. area) and any holidays declared by Executive Order. 

Holiday pay details: 

• Standard 40-hour schedule: 8 hours of paid holiday leave 
• Flexible work schedule: 8 hours credited toward the 80-hour biweekly requirement 
• Compressed schedules: Paid for all basic hours scheduled for that day 

Part-time federal employees also receive holiday pay based on their regular work hours, up to 8 hours per holiday. 

Private Sector Employees

The Federal Labor Standards Act (FLSA) doesn’t require private employers to provide holiday pay. This means each company decides whether to close, remain open, or pay employees extra for their holiday work. 

Still, many private businesses offer some form of holiday benefit. On average, U.S. private-sector employees receive about 7.6 paid holidays per year.  

Common employer approaches include: 

• Offering paid time off on major holidays (Thanksgiving, Christmas, New Year’s Day) 
• Paying premium rates (1.5x pay) to employees working on holidays 
• Providing floating holidays employees can use anytime 
• Offering no holiday pay (legal but uncommon practice) 

Exempt and Non-Exempt Employees 

• Non-exempt employees: Employers are not legally required to offer holiday pay but may allow the usage of accrued PTO or vacation days. 
• Exempt employees: Must receive their full salary on federal holidays, even if they have used all available PTO. 

State-Specific Rules

Some states have their own rules. For example: 

• Rhode Island and Massachusetts require premium pay for certain non-exempt employees who work on federal holidays. 

Always verify your state’s labor laws and company policies before setting or updating holiday pay practices 

Thus, federal employees are guaranteed paid holidays. Private-sector holiday pay, on the other hand, is policy-driven, so check out your employee handbook or consult your HR department for details. 

Also Read: Difference Between Exempt and Non-Exempt Status 

What is the Difference Between National Holidays and Federal Holidays?

Though often used interchangeably, federal holidays and national holidays aren’t the same in the U.S. 

Federal holidays are legally established under Title 5 of the U.S. Code, requiring federal offices, courts, and agencies to close. 

National holidays, by contrast, are widely celebrated cultural days without any legal status or mandatory closures. 

Key differences between federal holidays and national holidays: 

In short, only federal holidays carry legal weight for government employees. Other holidays may be nationally recognized or celebrated, but participation is entirely up to employers and individuals.