Understanding Legal Compliance for Paid Holidays
Employees and employers are planning ahead for upcoming holidays like Memorial Day, Juneteenth, Independence Day, and Labor Day. Paid company holidays are common, but the total number per year may vary by industry, location, or union status. 0:00 6:33 Quick Hits There are eleven federal holidays in 2026. Private employers are not legally obligated to provide paid holidays. Work performed by hourly, nonexempt employees on a holiday is compensable. Although federal law does not require private businesses to provide paid holidays , many companies voluntarily recognize certain federal holidays as paid holidays in order to boost recruiting, retention, and morale. Some companies choose to include paid holidays within their combined paid time off (PTO) policy, so that employees can pick which holidays they prefer to observe. In 2026, there are eleven federal holidays : New Year’s Day (January 1), Martin Luther King, Jr., Day (January 19), Inauguration Day (January 20), President’s Day (Febru...