Do Part Time Workers Get Holiday Pay in 2025?

• Federal law does not mandate holiday pay for any employees, including part-time workers, leaving it up to individual employer policies.
• Many employers offer holiday pay as a benefit, which may include regular pay for the holiday or additional compensation for hours worked during holidays.
• Eligibility for holiday pay often depends on factors such as employment status (full-time or part-time), length of service, and company-specific policies.
• Knowing these key details can help you understand your employer's holiday pay practices and advocate for fair treatment.

According to Deel, federal labor laws in the United States, including the Fair Labor Standards Act (FLSA), do not mandate payment for time not worked.

This includes vacation days and federal holidays, such as [2]:

• Thanksgiving Day
• Independence Day
• Labor Day
• Memorial Day
• Christmas Day
• New Year's Day
• Veteran's Day
• Martin Luther King Jr. Day

• Fair Labor Standards Act (FLSA):
  Federal labor laws, including the FLSA, do not require employers to pay employees for time not worked, such as vacation days or federal holidays like Thanksgiving, Christmas, and Labor Day. Payment for holidays is left to the discretion of the employer.
• Holiday Pay Rates:
  Employers may choose to offer holiday pay at a higher rate, such as time and a half or double time, for employees working on federal holidays. This policy is acceptable as long as it is clearly outlined and consistently applied.
• Exceptions to Federal Rules:
  • Service Contract Act (SCA): Employees covered under the McNamara O'Hara Service Contract Act are entitled to holiday pay.
  • Davis-Bacon and Related Act: Workers covered by this act may also qualify for holiday pay benefits.
  • Overtime Pay: Non-exempt employees (earning less than $684 weekly or $35,568 annually) may qualify for overtime pay for holiday hours, depending on the number of hours worked.

State-Specific Regulations

While federal law does not require holiday pay, some states have implemented their own laws that provide additional protections:

• Rhode Island: Full-time employees are entitled to holiday pay under state law. Part-time workers, however, are not covered by this requirement.
• Massachusetts: Employers are required to pay holiday pay to full-time employees for specific holidays. Part-time employees may not receive the same benefit unless stipulated in their employment contract or company policy.
• General Trends: Many states leave holiday pay policies up to employers, but collective bargaining agreements or industry-specific regulations can influence entitlements.

Key Considerations for Employees and Employers

• Employment Contracts: Holiday pay policies must be clearly outlined in employment contracts or handbooks to ensure transparency and compliance with applicable laws.
• Collective Bargaining Agreements: Unionized workplaces may have specific agreements in place that mandate holiday pay for both full-time and part-time employees.
• State Law Variances: Employees should check their state’s specific labor laws, as some states provide greater protections than federal laws.

Holiday pay in the United States is largely a matter of employer policy, shaped by federal guidelines and state-specific laws. While most employers are not legally required to provide holiday pay, exceptions like the SCA and Davis-Bacon Act, as well as state mandates, can influence entitlements.

Employees should review their contracts and state laws to fully understand their rights, while employers should ensure that holiday pay policies are clearly defined and consistently enforced to avoid legal disputes.

Calculating holiday pay can often feel confusing, but understanding the basic formulas and examples can help employees determine what they are entitled to.

According to a 2024 Intuit publication, holiday pay is typically calculated using a multiplier of 1.5x or 2.0x the employee’s regular pay rate [3].

Here’s how it works:

• Example: If an employee earns $15 per hour:
  • At a 1.5x holiday pay rate, they would earn $22.50 per hour.
  • At a 2.0x holiday pay rate, they would earn $30 per hour.

Key Scenarios for Holiday Pay

Regular Shift on a Holiday

• Employee: John, a part-time retail worker earning $12/hour.
• Holiday Pay Rate: 1.5x.
• Calculation:
  $12\times 1.5=18$
  John earns $18/hour for holiday work.

Overtime on a Holiday

• Employee: Sarah, a server earning $10/hour who works 8 regular hours and 4 overtime hours on a holiday.
• Holiday Pay Rate: 2.0x for regular hours, 1.5x for overtime.
  • Regular Pay: $10\times 8\times 2=160$
  • Overtime Pay: $10\times 4\times 1.5=60$
    Sarah earns a total of $220 for the day.

State-Specific Policies

• Employee: Mark, a California worker earning $20/hour.
• Holiday Pay Rate: 2.0x under his company policy.
  $20\times 2=40$
  Mark earns $40/hour for holiday work.

Understanding holiday pay calculations is essential to ensure you are paid fairly for your work. Whether your employer offers 1.5x or 2.0x pay, knowing these basic formulas and scenarios can help you calculate your holiday earnings accurately.

What the FLSA Says About Holiday Pay?

Collective Bargaining Agreements

CBAs often provide workers with enhanced benefits, including holiday pay:

• Negotiated Perks: CBAs may require higher pay rates for working on holidays or guarantee paid holidays for employees.
• Stronger Worker Protections: Employees under CBAs often enjoy more robust legal safeguards than those in standard agreements.
• Defined Dispute Resolutions: CBAs typically outline processes for resolving conflicts over holiday pay, giving employees a clear path to address issues.

Legal Precedents Shaping Holiday Pay Policies

As regulations evolve, both employers and employees must stay informed. Employers need to ensure compliance with the highest applicable standards, while employees should understand their rights to advocate for fair holiday pay.