Do You Get Overtime on Holidays in 2026? Holiday Pay vs Overtime Pay Explained

The Short Answer

Under federal law, working on a holiday is not automatically overtime. The Fair Labor Standards Act (FLSA) only requires time and a half after 40 hours actually worked in a single workweek. Paid holiday hours you didn't physically work do not count toward that 40-hour overtime threshold.

But the full answer is more nuanced — and in states like Massachusetts and Rhode Island, retail employees historically earned premium pay on certain holidays under "Blue Laws" (most have now been phased out). This 2026 guide explains exactly when holiday work triggers overtime, how holiday pay stacks with time and a half, and what your paycheck should look like.

Holiday Pay vs Overtime Pay: Two Different Things

| Concept | Required by Federal Law? | Rate |

|---|---|---|

| Holiday pay (paid day off) | No | Employer's choice (often regular rate) |

| Premium pay for working a holiday | No | Employer's choice (often 1.5x or 2x as a perk) |

| Overtime pay (over 40 hrs/week) | Yes (FLSA) | 1.5x regular rate |

The FLSA, enforced by the U.S. Department of Labor, does not require employers to pay anything extra for working on federal holidays like Thanksgiving, Christmas, or July 4th. Any "holiday premium" is a benefit set by your employer, union contract, or company handbook — not federal law.

Do Paid Holiday Hours Count Toward Overtime?

No — and this is where most workers get shortchanged. The DOL is explicit: only hours actually worked count toward the 40-hour overtime threshold. Paid time off (PTO, holiday pay, sick leave, vacation) does not count.

Worked Example: The Thanksgiving Week Trap

Sarah earns $20/hour. During Thanksgiving week, she:

• Worked Monday–Wednesday: 24 hours
• Thanksgiving Thursday: paid holiday (8 hours, didn't work)
• Worked Friday + Saturday: 20 hours

Total paid hours: 52. Hours actually worked: 44.

Many payroll systems incorrectly treat this as "52 hours paid, no overtime needed because holiday inflated it." Wrong. Sarah worked 44 hours, so she's owed 4 hours of overtime at $30/hour.

Correct paycheck:

• 40 regular hours × $20 = $800
• 4 overtime hours × $30 = $120
• 8 holiday hours × $20 = $160
• Total: $1,080

If your employer counted holiday hours toward the 40-hour cap and gave you no overtime, you may be owed back pay.

When Working a Holiday DOES Trigger Overtime

You earn overtime for holiday work in these situations:

• . You worked over 40 hours that week (excluding the holiday PTO). The hours on the holiday count as actual work — and push you over 40.
• . Your state has daily overtime laws — California, Alaska, Nevada, and Colorado pay overtime after 8 hours in a single day, holiday or not.
• . Your union contract or employer policy promises premium holiday pay (1.5x or 2x).
• . You're a federal employee — Title 5 grants "holiday premium pay" equal to your basic rate for holiday hours worked.

State Rules That Go Beyond Federal Law

Most states follow the FLSA exactly. A few have additional rules worth knowing:

| State | Holiday Rule |

|---|---|

| Massachusetts | Blue Laws repealed Jan 1, 2023 — no more mandatory 1.5x retail premium on Sundays/holidays |

| Rhode Island | Still requires 1.5x for most retail employees on Sundays and select holidays |

| California | No special holiday rule, but daily 8-hour OT applies — long holiday shifts almost always trigger 1.5x |

| New York | No mandatory holiday premium, but hospitality wage order may apply |

Common Holiday Overtime Scenarios (2026)

Scenario 1: Working a Federal Holiday in a Short Week

You work 8 hours on July 4th, then 32 hours Tuesday–Friday. Total: 40 hours worked. No overtime federally, but your employer may pay a holiday bonus.

Scenario 2: Holiday + Overtime Stack

You work 50 hours including 10 on Christmas Day. Federally you get 10 hours of overtime (1.5x). If your company also offers 2x holiday premium, those 10 Christmas hours pay at 2x — and overtime calculations use the higher rate as the "regular rate of pay" base. See our overtime rate of pay guide for the math.

Scenario 3: California Holiday Shift

You work 12 hours on Memorial Day in California. State law requires:

• 8 hours at regular rate
• 4 hours at 1.5x (daily overtime)
• If hours 13+ existed, they'd be at 2x double time

This applies whether it's a holiday or not.

What If You're Salaried?

Salaried non-exempt employees follow the same rule: holiday PTO doesn't count toward 40 hours, but actual holiday work does. If you're a salaried employee under $58,656, you're entitled to overtime for holiday hours worked over 40.

Salaried exempt employees (passing the full duties + salary test) get no extra holiday pay under federal law — but most employers offer paid holidays as a benefit.

Frequently Asked Questions

Do you get overtime on holidays under federal law?

Only if your total hours worked that week exceed 40. The federal Fair Labor Standards Act does not require special holiday pay just because it's a holiday.

Do you get holiday pay on overtime hours?

Holiday pay (the paid day off) and overtime are calculated separately. Holiday PTO doesn't increase your overtime obligation, and overtime doesn't entitle you to extra holiday pay.

Do you get paid overtime on federal holidays?

Only private-sector employees who exceed 40 hours worked in the week. Federal employees receive holiday premium pay under Title 5.

Does paid time off count toward overtime?

No. Per the DOL, only hours physically worked count. PTO, holiday pay, vacation, and sick leave are excluded.

Is double time required on Christmas or Thanksgiving?

Not by federal law. Double time on holidays is a benefit some employers and union contracts offer — check your employee handbook or CBA.

Do part-time employees get holiday pay?

Federal law doesn't require holiday pay for anyone. Many employers offer it pro-rata to part-time workers, but it's not mandatory.

What's the difference between holiday pay and overtime pay?

Holiday pay is compensation for a paid day off (employer's choice). Overtime pay is the federally mandated 1.5x rate for hours worked over 40 per week.

Calculate Your Holiday Overtime Pay

Don't let your employer count holiday PTO against your 40-hour overtime cap. Use our free state-specific calculators to verify your paycheck includes every overtime hour you actually worked:

• California Overtime Calculator — daily 8-hour + holiday shifts
• Massachusetts Overtime Calculator — post-Blue Laws rules
• Rhode Island Overtime Calculator — Sunday/holiday premium still applies
• All 50 State Calculators →

Related guides: How Many Hours Is Overtime? · How to Calculate Time and a Half · What Is the Overtime Rate of Pay?