It’s the most… wonderful tiiiiiime of the yeeeear!
But wait, do you pay employees for holidays or not?
Does a business have to pay employees for holidays?
Paid holidays are not required in the United States by any government regulations. This is because the Fair Labor Standards Act (FLSA) does not require an employer to pay employees for time that they do not work, such as for vacations or holidays.
But should you?
If you want to attract and retain talent, the short answer is: YES.
Paid Holiday Averages in the United States
Employees in the US receive an average of 7.6 paid holidays, according to The Bureau of Labor Statistics in the category “all full-time employees.” Professional and technical employees average 8.5 paid holidays. Clerical and sales employees average 7.7 paid holidays. Blue collar and service employees have, on average, 7.0 paid holidays.
A 2016 study of paid time off by the WorldatWork Association found that nine paid holidays was the norm in the United States.
Private Sector Paid Holiday Schedule in the U.S.
These are the most common paid holidays in a private sector organization’s paid holiday schedule. They will vary by the company based on the needs of the employees and the needs of the business.
For example, even companies that offer these paid holidays may have jobs that must work on the holidays. This is a necessity, or in some cases, a choice for profitability, in industries that serve customers 24 hours a day, 7 days a week, and 365 days a year.
Usual Paid Holidays
- New Year’s Day,
- Easter,
- Memorial Day,
- Independence Day (4th of July),
- Labor Day,
- Thanksgiving Day,
- Friday after Thanksgiving, and
- Christmas Day.
Additionally, some organizations add several of these days to their paid holiday schedule. This depends on regional differences and the input of employee feedback over time.
- Washington’s Birthday or President’s Day,
- Good Friday,
- Martin Luther King, Jr. Birthday,
- Juneteenth,
- Veterans’ Day,
- “Columbus Day” (also observed as Indigenous Peoples Day), and/or
- Christmas Eve, and/or New Year’s Eve.
Another commonly paid holiday option is a floating holiday or two in which the employee determines the day to take off as part of his or her paid holiday schedule. These are offered so that, for example, employees with various religious and cultural celebrations and memorials and employees who wish to extend paid holiday weekends, have more options.
Knowing what your employees want is the key to creating a successful employee paid holiday schedule. Administering a climate survey is a great way to find this out.
Pick up our Prepare to Win: HR and Employee Buildout for StartUps Guide for our complete Paid Time Off recommendations.