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U.S. Public Holiday Regulations
In the U.S., there’s no federal law requiring paid public holidays. “Federal holidays” mainly apply to government employees, while private employers can choose whether to observe them. Some states and industries recognize extra holidays, but paid time off depends on company policy or employment contracts.
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List of Public Holidays in the United States in 2025
Here’s a list of the federal public holidays observed in the U.S. in 2025. Private employers can decide which ones to recognize and whether to provide paid time off.
Do Employers Have to Provide Paid Leave on Public Holidays?
No, U.S. labor law does not require private employers to provide paid leave on public holidays. The Fair Labor Standards Act (FLSA) — the main federal labor law — does not mandate paid time off for holidays, vacation, or weekends. Paid holiday leave is therefore a matter of company policy.
Full-time employees at many companies typically receive between 7 and 12 paid holidays per year, while part-time employees often receive prorated or no paid holiday benefits. In practice, most employers in the U.S. offer some form of paid holiday leave to stay competitive and maintain morale, but there is no legal entitlement to it. Holidays do not count as part of annual leave unless explicitly stated in the employment agreement.
Legal Penalties for Not Providing Paid Holiday Leave
Because paid holidays are not a legal requirement, there are no federal penalties for not providing them. However, employers must avoid misleading or inconsistent practices — for example, promising paid holidays in employee handbooks or contracts but failing to deliver. This can lead to wage and hour complaints or claims of breach of contract under state labor laws.
Some states and cities have additional rules, especially for public-sector employees or unionized workplaces, where collective bargaining agreements may establish paid holiday entitlements. Employers operating across multiple states should ensure local compliance and maintain clear documentation to avoid disputes.
To minimize risk, businesses should:
- Clearly outline holiday policies in employment contracts and handbooks.
- Apply holiday pay policies consistently.
- Keep accurate payroll records to avoid wage claims.
How Do Holidays Affect Overtime Thresholds?
Public holidays do not automatically affect overtime calculations under U.S. law. The FLSA requires overtime pay only for hours worked over 40 in a workweek. If an employee receives paid time off for a holiday, those hours do not count toward the 40-hour overtime threshold. However, if employees are required to work on a holiday, they are paid their normal rate — unless the employer offers holiday premium pay (often 1.5x pay), which is a company benefit, not a legal obligation.
Stay 100% Compliant with Leave Regulations Using Playroll
Leave entitlements — from public holidays to annual and sick leave — vary widely across the United States, especially when you factor in state and city-specific rules. Managing these differences correctly is essential to avoid compliance issues, employee dissatisfaction, and payroll errors.
Playroll takes the complexity out of managing U.S. (and global) leave compliance. Our platform automatically tracks federal, state, and local leave regulations — including public holidays — and applies them accurately for every employee, no matter where they’re based. With Playroll, you can confidently manage your global workforce knowing that your holiday and leave policies are legally sound and seamlessly integrated into your payroll operations.

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