Typical paid holidays include New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Veterans Day, and Christmas Day. Which days are paid days off can also vary depending on whether the employer is in the public sector or the private sector.
What Are Paid Holidays?
Paid holidays give employees a day off work without missing out on pay. Private employees in the U.S. receive an average of eight paid holidays per year, according to The Bureau of Labor Statistics, with 81% of private industry workers receiving access to paid holidays as of 2021. The number of paid holidays and percentage of workers with access varies from industry to industry.
What Are the Typical Paid Holidays?
These are the most common paid holidays:
New Year’s DayEasterMemorial DayIndependence Day (4th of July)Labor DayThanksgiving DayFriday after ThanksgivingChristmas Day
Which holidays are paid holidays vary from employer to employer. The dates of certain holidays can vary sometimes, too. These additional holidays often include:
President’s DayGood FridayMartin Luther King, Jr.’s BirthdayJuneteenthVeterans’ DayColumbus Day (also observed as Indigenous Peoples Day)Christmas EveNew Year’s Eve
Another common paid holiday option is a floating holiday, in which the employee chooses which day to take off as part of their paid holiday schedule. These floating holidays are offered as a way for employees to observe various religious holidays, cultural celebrations, and memorials. It can also be a way for employees to extend paid holiday weekends.
Private Sector Paid Holidays vs. Federal Paid Holidays
There is no law requiring employers to give their workers paid holidays, but many choose to do so. However, private companies that offer paid holidays may still require some employees to work on the holidays. This is especially true in industries that serve customers 24 hours a day, 7 days a week. For instance, manufacturing jobs may require holiday work when capacity and customer demand require increased production. Health care services that provide direct patient care, including nursing, emergency room services, hospital food services, and custodial services, will need some employees to work during holidays. Retail establishments, restaurants, gas stations, drug stores, convenience stores, and grocery stores that are open on holidays will need employees to staff the business on those days. Other services require employees to be on call instead, such as physician’s offices, telephone services, electric utilities, snow removal workers, and so on. These people may have to depend on a fair on-call schedule to get to plan celebrations on otherwise paid holidays. Federal law establishes the holiday schedule for federal employees. This law also designates the names of paid holidays, such as Washington’s Birthday (known to many as President’s Day). Many public sector organizations, such as local and state governments, base their holiday schedule on the federal holiday schedule. In the U.S., this is the Federal paid holiday schedule:
New Year’s DayBirthday of Martin Luther King, Jr.Washington’s BirthdayMemorial DayJuneteenth National Independence DayIndependence DayLabor DayColumbus DayVeterans DayThanksgiving DayChristmas Day
Do Paid Holidays Affect Your Paycheck?
If the paid holiday falls on a payday, it could affect your paycheck. The payroll department may be off and unable to process your paycheck. Also, the Automated Clearing House (ACH) system that processes direct deposits does not operate on bank holidays, which follow the federal holiday schedule. Your employer might make alternative arrangements to provide your paycheck before the holiday, but they aren’t required to.
