Under the federal Fair Labor Standards Act (FLSA), private-sector employers in the United States are not legally required to provide paid leave for holidays. Whether an employee receives compensation for a federal holiday is determined by the policies of their specific employer. In contrast, most federal government employees are statutorily entitled to paid time off for holidays designated by federal law.
For private-sector employees, the terms of holiday compensation are a matter of agreement between the employer and employee, often outlined in an employee handbook, an employment contract, or a collective bargaining agreement. Non-exempt (hourly) employees are typically paid only for hours actually worked; federal law does not require they be paid for time off or receive premium pay for working on a holiday, though company policy may offer it. Exempt (salaried) employees, however, must generally receive their full salary for any workweek in which they perform any work, meaning their pay cannot be docked if the business closes for a holiday.
Ultimately, an individual's eligibility for this type of compensation depends on their specific employment arrangement. The definitive answer is found within company policy documents or employment contracts. The key determining factors are the employment sector (public vs. private), the employer's established benefit policies, and the employee's classification as exempt or non-exempt under the FLSA.
