Paid Holidays

Paid Holidays are designated days off from work for which employees receive their regular pay. These holidays are typically recognized by employers based on federal, state/provincial, or company policies. Common paid holidays include national observances such as New Year’s Day, Independence Day (or Canada Day), Thanksgiving, and Christmas. Some employers may also offer additional paid holidays or floating holidays as part of their benefits package.

Paid holidays contribute to employee satisfaction and work-life balance, and policies regarding them may vary depending on the industry, location, and employment agreement.

Key Facts

• Eligibility: Often based on employment status (for example, full-time, part-time) and length of service.
• Common Holidays: Includes New Year's Day, Independence Day (U.S.), Labor Day, Christmas Day, and more.
• Company Policy: Employers choose which holidays are paid; not all are legally required.
• Union Agreements: May include specific paid holidays in collective bargaining agreements.
• Impact on Pay: Employees are compensated even though they are not required to work on these days.

1. Are employers required to offer paid holidays?

No federal law mandates paid holidays in the U.S., but many employers offer them as a benefit.

2. Do part-time employees get paid holidays?

It depends on company policy; some include prorated paid holidays for part-time staff.

3. What happens if I work on a paid holiday?

Some employers offer holiday pay (for example, 1.5x or 2x regular rate) in addition to regular pay.

4. How are paid holidays determined?

By company policy, government regulations, or union agreements.

5. Do paid holidays count toward overtime?

No, paid holidays typically don’t count as hours worked for calculating overtime.