Holiday Pay Laws by State (2026): Time and a Half, Double Time & the 40-Hour Rule

The Short Answer

In the United States, no federal law requires private employers to pay extra for work performed on holidays like Thanksgiving, Christmas, or the Fourth of July. The Fair Labor Standards Act (FLSA) treats holidays like any other workday — your employer only owes you straight-time pay for the hours you actually work.

Premium holiday pay (1.5× or 2.0× your regular rate) exists because of company policy, employee handbooks, or union contracts — not federal law. A small number of states have historically had narrow rules for specific industries, but as of 2026 only Rhode Island still maintains a meaningful premium-pay requirement for retail and select non-manufacturing work on certain holidays.

Use our free holiday pay calculator to estimate your time-and-a-half or double-time wages, and see how holiday hours interact with the 40-hour overtime rule.

Does Holiday Pay Count Toward the 40-Hour Overtime Threshold?

This is the single most common question about holiday pay, and the answer matters: it can change your paycheck by hundreds of dollars.

Under the FLSA, only hours you actually work count toward the 40-hour overtime threshold. Paid holiday time you did not work — for example, taking Christmas Day off with holiday pay — does *not* push your week into overtime.

Example: Holiday off, no overtime

You take Monday off (Christmas, 8 hours holiday pay) and then work 36 hours Tuesday through Friday. Your paycheck shows 44 paid hours, but you only worked 36. Under the FLSA, no overtime is owed.

Example: Holiday worked, possible overtime

You work the holiday (8 hours at 1.5×) plus 40 hours Tuesday through Friday. You worked 48 hours total — so 8 hours of overtime kick in on top of the holiday premium. The holiday pay and the overtime pay stack.

The union and public-sector exception

Many collective bargaining agreements and certain state and local government employers require holiday hours to count toward the overtime threshold. If your union contract says "holiday hours count as worked hours for purposes of overtime," that contract controls — and it can push your weekly total over 40 even if you took the holiday off.

How to Calculate Holiday Pay (The Formula)

The standard formula is straightforward:

• . Holiday pay = hours worked on the holiday × hourly wage × holiday multiplier (typically 1.0×, 1.5×, or 2.0×)
• . Regular pay = other worked hours up to 40 × hourly wage
• . Overtime pay = hours actually worked over 40 × hourly wage × 1.5
• . Total weekly gross = holiday pay + regular pay + overtime pay

Worked example: $22/hr, Thanksgiving

A grocery clerk earning $22/hour works 8 hours on Thanksgiving (employer pays 1.5×) plus 40 regular hours Monday–Wednesday and Friday–Saturday.

• Holiday pay: 8 × $22 × 1.5 = $264
• Regular pay: 40 × $22 = $880
• Overtime: only 40 hours of *other* work, so $0
• Total: $1,144

If the same worker also picks up an extra 4-hour shift on Sunday, their *worked* hours hit 52. The 8 holiday hours stay at the holiday rate, the next 40 hours of regular work stay at straight time, and the remaining 4 hours become overtime at 1.5×.

2026 Federal Holidays

Federal holidays apply to U.S. government employees and many large employers follow the same schedule. Private employers are not required to give the day off or pay extra.

• New Year's Day — Thursday, January 1
• Martin Luther King Jr. Day — Monday, January 19
• Presidents' Day — Monday, February 16
• Memorial Day — Monday, May 25
• Juneteenth — Friday, June 19
• Independence Day — Saturday, July 4 (observed Friday, July 3)
• Labor Day — Monday, September 7
• Columbus Day / Indigenous Peoples' Day — Monday, October 12
• Veterans Day — Wednesday, November 11
• Thanksgiving Day — Thursday, November 26
• Christmas Day — Friday, December 25

State-by-State Holiday Pay Rules (2026)

Rhode Island — premium pay still required

Rhode Island remains the strictest state. Most retail and non-manufacturing employers must pay 1.5× the regular rate for work performed on Sundays and these holidays: New Year's Day, Memorial Day, Independence Day, Victory Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas. Employees also have a right to refuse holiday work without retaliation.

Massachusetts — premium pay phased out

Massachusetts famously required Sunday and holiday premium pay for retail workers under its old Blue Laws, but the premium was gradually phased out and ended on January 1, 2023. As of 2026, Massachusetts retail employers must still allow employees to refuse holiday work without retaliation, but no extra pay is required.

California, New York, Texas, Florida, Illinois — no state premium

None of these states require holiday premium pay in the private sector. Holiday pay is governed entirely by company policy or union contract. California does, however, require daily overtime over 8 hours and double time over 12 hours — so a long shift on a holiday can still trigger California's daily overtime rules. See our California Overtime Pay Calculator for the math.

All other states

Every other state follows the FLSA default: no premium pay required for working a holiday, and only worked hours count toward the 40-hour overtime threshold.

When Holiday Pay Is Legally Required

Even though federal and most state laws don't require holiday pay, you may still be legally entitled to it if any of the following apply:

• Written employer policy or handbook. Once an employer promises holiday pay in an offer letter or handbook, courts in most states treat the promise as an enforceable wage obligation.
• Collective bargaining agreement. Union contracts almost always specify holiday pay rates, eligibility, and how holiday hours interact with overtime.
• Established past practice. Some state courts (notably in the Northeast) have held that decades of paying premium holiday rates can create an implied contract.
• Government employment. Federal employees receive holiday premium pay under 5 U.S.C. § 5546; many state and local government workers receive similar protections through statute or CBA.

Common Holiday Pay Pitfalls

• . Confusing "paid holiday" with "premium holiday pay." A paid day off at straight time is not the same as time-and-a-half for actually working.
• . Forgetting that holiday hours don't count toward OT under the FLSA. A 32-hour work week with one 8-hour paid holiday is still a 32-hour week for overtime purposes.
• . Stacking confusion. If you work the holiday *and* more than 40 actual hours, you get both holiday premium and overtime — they don't cancel each other out.
• . Salaried non-exempt employees. Salaried non-exempt employees still earn overtime when worked hours exceed 40, regardless of holiday pay.
• . Tipped employees. The holiday premium applies to the full regular rate (including tip credit, where applicable), not just the cash wage.

Quick FAQ

Is holiday pay required by federal law? No. The FLSA does not require any premium for holiday work.

Do salaried exempt employees get extra holiday pay? Usually no — they receive their normal salary regardless of holiday work.

Can my employer make me work a holiday? In every state except Rhode Island (and parts of Massachusetts), yes — and they can fire you for refusing unless your contract or union agreement says otherwise.

Does PTO used on a holiday count toward overtime? No. Only hours actually worked count toward the FLSA's 40-hour threshold.

What if my paycheck is short? File a wage claim with your state's labor department or the U.S. Department of Labor Wage & Hour Division.

Calculate Your Holiday Paycheck

Plug your wage and hours into our free holiday pay calculator — it handles 1.0×, 1.5×, and 2.0× multipliers, lets you toggle whether holiday hours count toward overtime, and shows the breakdown line-by-line.

For weekly overtime questions outside the holiday context, our main overtime calculator covers all 50 states with 2026 FLSA and state-specific rules.