What’s a federal holiday?

Federal holidays are days the United States government has designated as days off for federal government workers. These days off are described in 5 U.S. Code § 6103. This statute also explains the rules surrounding these holidays, including directives for adjusting schedules when a designated federal holiday falls on a weekend instead of a weekday.

There are 11 federal holidays as legislated in this code:

• New Year’s Day: January 1
• Martin Luther King, Jr. Day: The third Monday in January
• President’s Day (George Washington’s Birthday): The third Monday in February
• Memorial Day: The last Monday in May
• Juneteenth: June 19
• Independence Day: July 4
• Labor Day: The first Monday in September
• Indigenous Peoples’ Day: The second Monday in October
• Veterans Day: November 11
• Thanksgiving Day: The fourth Thursday in November
• Christmas Day: December 25

Each federal holiday was chosen to commemorate a person or event. For example, President’s Day, which occurs in February, is also designated as President George Washington’s Birthday. Memorial Day in May is in appreciation of those who lost their lives while serving in the US military.

What happens when a federal holiday falls on a weekend?

When a federal holiday falls on a Saturday or Sunday, it is observed on the nearest weekday. This ensures federal employees receive time off, even when the holiday date falls on a nonworkday.

Here is how the observance works:

• If the holiday falls on a Saturday, it is usually observed on the preceding Friday
• If the holiday falls on a Sunday, it is usually observed on the following Monday

These adjustments help federal agencies comply with paid leave requirements and ensure employees receive the full benefit of the holiday.

Occasions that aren’t considered federal holidays

With the exception of Christmas, the US federal government doesn’t recognize religious occasions as federal holidays. This means federal workers don’t receive time off for religious holidays, such as Easter (Christianity), Eid al-Fitr (Islam), Rosh Hashanah (Judaism) and Diwali (Hinduism and Sikhism).

State and regional holidays are also excluded from the list of federal holidays. Local governments may observe holidays that differ from those established by federal law, often in recognition of individuals or events of particular importance to that region.

Examples of local holidays not observed at the federal level include:

• • Mardi Gras Day in Louisiana: May 4 (every year on Twelfth Night)
  • Statehood Day in Hawaii: August 15 (third Friday in August)

• Pioneer Day in Utah: (July 24)

• Nevada Day in Nevada: (last Friday in October)

Not all federal holidays are observed at the state level. Although Indigenous Peoples’ Day is a federal government holiday, not all states grant it as a day off work. In fact, only 16 states and American Samoa give government employees that day off.

Observance of Inauguration Day

Inauguration Day is a federal holiday that occurs every four years on January 20, following a US presidential election. Unlike other federal holidays, it is only observed as a paid day off for federal employees who work in the Washington, D.C., metropolitan area.

For most other workers and employers, Inauguration Day does not affect regular work schedules or holiday policies.

When Inauguration Day falls on a Saturday, most eligible federal employees observe the holiday on the preceding Friday. If it falls on a Sunday, it is not observed, and no alternate day off is provided. These guidelines are outlined in federal law (5 U.S.C. 6103) and supported by Executive Order 11582.

Federal employees scheduled to work in the Washington, D.C., area on Inauguration Day typically receive paid administrative leave. However, not all federal employees qualify for time off. For example, Inauguration Day is not considered a paid holiday for employees who:

• Work remotely from outside the Washington D.C. area
• Are temporarily in Washington, D.C., for official duties but are assigned elsewhere

Employers should confirm eligibility based on employee location and agency policy.

Do all government agencies, states and private businesses recognize Inauguration Day?

Local governments and private businesses in the D.C. area may choose to observe Inauguration Day, but they aren’t required to do so by federal law. State and local governments, as well as private businesses, may use their discretion in deciding whether to recognize this day as a paid holiday. This is true even if your company is based in the D.C. area.

To find out if Inauguration Day or any other federal holiday applies to your workplace, follow these steps:

• Visit the U.S. Office of Personnel Management (OPM) website.
• Select the tab labeled with your year of interest. There are usually tabs extending several years into the future, allowing you to plan your company calendar well in advance.
• Scroll down to review federal holidays for that year and read further details about certain holidays and how you can ensure your employee schedule aligns with federal code.

How paid holidays benefit your business

The Fair Labor Standards Act (FLSA) oversees workplace practices such as minimum wage and salaried employee overtime. While the FLSA doesn’t require businesses to provide federal holidays as days off, many private employers do so as part of their company benefits package.

A time-off policy, including paid holidays, can help you:

• • Build goodwill among staff: Giving your staff time off could make them feel more valued and appreciated. A boost in morale could subsequently result in a better work environment and increased productivity.

• Reduce absenteeism: PTO can help decrease unscheduled absences, allowing you to be more proactive and organized about staffing.

• Recruit top talent: Offering appealing benefits, including holidays and additional PTO, can make your company attractive to candidates eager for better work-life balance.
• Prevent employee burnout: Employees with little time off can become frustrated, leading to a lack of motivation that can negatively affect productivity.
• Save money: PTO can help reduce expenses by decreasing employee turnover, reducing stress that can lead to employee illness and supporting happier, more productive employees.

Which holidays for federal employees should you give as paid days off?

It’s important to have a formal company policy in place regarding paid holidays so your employees know which ones are included. Put this information in your employee handbook.

In 2018, the National Compensation Survey collected data to see how many private industry employees received federal holidays off. The most popular paid holidays were Thanksgiving and Christmas Day, with 97% of employees in private businesses receiving automatic time off. The least common paid days off were Veterans Day (11%) and Washington’s Birthday/President’s Day (19%).

Here’s a breakdown of holidays commonly provided as paid days off and the percentage of private industry employees receiving this benefit:

• Christmas Day: 97%
• Thanksgiving: 97%
• Independence Day: 94%
• Labor Day: 91%
• New Year’s Day: 90%
• Memorial Day: 89%
• Day after Thanksgiving: 39%
• Christmas Eve: 26%
• Martin Luther King, Jr. Day: 24%
• Washington’s Birthday/President’s Day: 19%
• Good Friday: 19%
• New Year’s Eve: 14%
• Veterans Day: 11%

Note that some of these holidays aren’t official holidays, but days around the holidays. In some cases, it makes sense to add an extra day off, such as the day after Thanksgiving, rather than asking employees to come back in for one more day of work before the weekend.

State holidays

When crafting your company holiday policy, be sure to consider local or regional holidays recognized by your state. Examples include Lincoln’s birthday (February 12), which is only celebrated by a handful of states, and Bennington Battle Day (August 16) in Vermont.

State holidays are provided as paid days off to official state employees, and the same time off may be extended to city employees by local government. However, this exemption is not universal, and private employers in most states aren’t typically required to grant their workers the same time off.

Check with your state labor laws to ensure you’re in compliance with mandated paid holidays and other types of leave.

Floating holidays

You may also want to give your staff the option of celebrating religious or cultural holidays of their choice. Floating holidays are flexible days off that let employees mark occasions that are important to them without using vacation time.

If you’re considering implementing floating holidays, be sure to clearly outline all guidelines related to requesting this time off. Here are some examples of rules and explanations you might choose to include in your handbook:

• What floating holidays or PTO can be used for: Some companies consider floating holidays and sick leave to be two separate benefits, with vacation time another separate provision.

• When floating holidays can and can’t be used: You may wish to outline blackout periods when floating holiday time can’t be used. This most often occurs if a company will be particularly busy during a given time period or if other employees have already requested that time off.
• The number of floating holidays included in each calendar year: You should also clarify whether unused days roll over to the next year or expire on December 31, and if unused floating holidays can be converted into monetary compensation.
• Procedures for requesting time off: Explain how employees should ask for time off, how far in advance requests should be made and how quickly they’ll be reviewed.

Looking ahead: Federal holidays in 2025

Knowing which holidays will affect your workplace schedule can help you plan for absences and better plot project deadlines. Here’s a list of 2025 federal holidays and the dates they’re observed by the federal government:

• Wednesday, January 1, 2025: New Year’s Day
• Monday, January 20, 2025: Birthday of Martin Luther King, Jr.
• Monday, February 17, 2025: President’s Day (George Washington’s Birthday)
• Monday, May 26, 2025: Memorial Day
• Thursday, June 19, 2025: Juneteenth
• Friday, July 4, 2025: Independence Day
• Monday, September 1, 2025: Labor Day
• Monday, October 13, 2025: Indigenous Peoples’ Day
• Tuesday, November 11, 2025: Veterans Day
• Thursday, November 27, 2025: Thanksgiving Day
• Thursday, December 25, 2025: Christmas Day