US Virgin Islands Public Holiday Regulations
In the US Virgin Islands, public holidays are generally recognized days off, but private employers are not universally required by federal law to provide paid holiday leave. Holidays are set at the territorial level rather than by region, and when a holiday falls on a weekend it is typically observed on the closest weekday. In 2026, there are around a dozen core public holidays, but you should confirm the final official calendar issued by the territorial government.
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List of Public Holidays in US Virgin Islands (2026)
The US Virgin Islands follows a mix of US federal and territorial holidays. Always confirm dates against the official territorial calendar for 2026, as the government may add or shift observances.
Do Employers Have to Provide Paid Leave on Public Holidays?
No, US federal labor law does not require private employers in the US Virgin Islands to provide paid leave on public holidays, and territorial law generally follows the same approach for most private-sector employers. Public holidays are official non-working days for government offices and many public institutions, but in the private sector they are a matter of company policy or collective bargaining agreements.
In practice, many employers in the US Virgin Islands offer paid time off for major holidays such as New Year’s Day, Good Friday, Memorial Day, Emancipation Day, Independence Day, Labor Day, Thanksgiving, and Christmas to stay competitive in the local labor market. Part-time and temporary employees may receive holiday pay on a pro-rated or eligibility basis if your internal policy or employment contracts say so, but this is not mandated by federal law.
When a public holiday falls on a Saturday or Sunday, the territorial government typically designates an observed weekday (often the preceding Friday or following Monday) for public offices. Private employers can choose whether to follow the official observed date, keep operations open and pay normal wages, or provide an alternative paid day off. Whatever approach you choose, document it clearly in your handbook and apply it consistently to avoid discrimination claims.
Legal Penalties for Not Providing Paid Holiday Leave
Because paid public holidays are not generally mandated for private employers, there is usually no direct penalty simply for choosing not to offer paid holiday leave. However, you can face legal and financial exposure if you violate wage-and-hour rules when you do offer holiday benefits or if you apply your policy inconsistently.
Enforcement of wage issues in the US Virgin Islands is primarily handled by the US Department of Labor (Wage and Hour Division) and relevant territorial labor authorities. Common employer mistakes include failing to pay employees for hours actually worked on a holiday, misclassifying employees as exempt to avoid overtime, or docking exempt employees’ salaries in ways that undermine their exempt status. These issues can trigger back-pay awards, liquidated damages, civil penalties, and, in serious cases, litigation and class actions.
If your company promises paid holidays in contracts, offer letters, or a collective bargaining agreement but does not honor them, you may also face breach-of-contract or grievance claims. To stay safe, align your written policies with your actual practices, keep accurate time and pay records, and periodically review your holiday and leave policies with local counsel.
How Do Holidays Affect Overtime Thresholds?
Public holidays in the US Virgin Islands do not change the basic federal overtime rules. Under the Fair Labor Standards Act, non-exempt employees are generally entitled to at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek, regardless of whether those hours fall on a holiday or a regular workday.
Paid holiday hours that an employee does not actually work usually do not count as hours worked when calculating overtime, unless your company policy or a collective bargaining agreement explicitly provides a more generous formula. If an employee works on a holiday, you are not legally required to pay a special holiday premium rate unless you have agreed to one by policy or contract, but many employers voluntarily pay time-and-a-half or double time on key holidays to support staffing and morale.
To avoid disputes, define in writing whether holiday pay counts toward overtime thresholds, what premium (if any) applies to holiday work, and how you handle situations where an employee works part of a holiday and takes the rest as paid time off. Make sure your payroll system is configured to apply these rules correctly across different locations and employee types.
Stay 100% Compliant with Leave Regulations Using Playroll
Managing public holidays and leave rules in the US Virgin Islands doesn’t have to be complex. Playroll keeps you 100% compliant by automatically tracking local holidays, observed days, and pay requirements – so your team is paid correctly and on time, every time.
Whether you’re hiring your first employee or scaling a growing team, Playroll lets you employ talent without setting up a local entity. We handle compliant contracts, benefits, and payroll in one platform, so you can reduce compliance risk and focus on growing your business while we take care of the heavy-lifting in the background. Book a chat with our team to get started.

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