What are Federal Holidays?

Federal holidays are those special dates marked on the calendar that promise a break from the routine. For many, they're synonymous with family gatherings, vacations, and leisure time. However, for HR professionals and business owners, knowing about federal holidays is more than just fun. They significantly impact workforce management, payroll, and overall business operations.

In this guide, we'll explore the finer points of federal holidays, from their legal definition to their impact on your business. By the end, you'll fully understand how to manage these days and ensure a smooth operation for your organization.

What are Federal Holidays? Federal Holidays vs Public Holidays

A federal holiday is a designated day observed by the United States government as a non-workday for federal employees. These holidays are regulated by federal law and typically involve the closure of non-essential government offices. While federal employees are entitled to paid time off on these days, private sector employees are not legally required to receive the same benefit.

Public holidays are very similar to federal holidays. The premise is the same: During that day, the government closes down, and banks and other privates can do that as well. But, in theory, local holidays not endorsed by the US Congress would be a public holiday and not a federal one. Still, when one considers how some “federal” days, such as Columbus Day, are not observed by every state, then it seems that calling them “public” would be even more precise.

Legal Recognition and Observance

There are specific laws that determine when federal holidays occur and how they’re handled. The United States Code outlines what is a legal public holiday and how many federal holidays are there.

While the government must follow these holiday guidelines, private businesses have more flexibility. Many companies choose to give employees time off in lieu of holiday as a benefit, but they aren't required to do so. Other companies might offer different options like extra time off later or additional pay for working on a holiday.

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How many Federal Holidays in a Year? List of Federal Holidays

There are eleven federal holidays each year in the United States. As we said, federal holidays are designated by the US government and provide a day off for most federal employees and many others nationwide. Here’s a quick rundown of them:

1. New Year's Day (January 1): It celebrates the beginning of the new year.
2. Martin Luther King Jr. Day (Third Monday in January): On the birthday of Martin Luther King, it honors the civil rights leader’s contributions to equality.
3. Washington's Birthday (Third Monday in February): Also known as Presidents' Day, this holiday acknowledges the contributions of US presidents, with a focus on George Washington. No, there's no February Memorial Day in the US.
4. Memorial Day (Last Monday in May): It commemorates those who have died while serving in the military.
5. Juneteenth National Independence Day (June 19): It marks the end of slavery in the United States and celebrates African American freedom and achievements.
6. Independence Day (July 4): It recognizes the adoption of the Declaration of Independence in 1776, celebrated with various patriotic activities and fireworks.
7. Labor Day (First Monday in September): It honors the American labor movement and the contributions of workers.
8. Columbus Day (Second Monday in October): It recognizes Christopher Columbus's arrival in the Americas. It is one of the most inconsistently celebrated holidays in the United States, to an extent it'd be reasonable to not call it a federal holiday, and instead label it something else.
9. Veterans Day (November 11): It pays tribute to all US military veterans.
10. Thanksgiving Day (Fourth Thursday in November): A day for giving thanks and enjoying a meal with family and friends.
11. Christmas (December 25): It celebrates the birth of Jesus Christ and is marked by various holiday traditions.

Additionally, Presidential Inauguration Day on January 20th is observed every four years when a new president is sworn into office, though this is specific to the Washington, D.C. area. It's mainly because some businesses prefer to hunker down around that date.

Federal Holidays 2025

You can rest assured that the federal holidays in 2025 will remain consistent with previous years. There are no unexpected changes or modifications to these dates. The last addition to a federal holiday was with Juneteenth in 2021.

Additionally, since 2024 is a presidential election year, the next presidential inauguration will occur in January 2025. However, the Presidential Inauguration Day holiday observed in 2025 is not a federal holiday or a day off.

For the convenience of planning, here’s a list of 2025 federal holidays:

• New Year's Day: Wednesday, January 1st
• Martin Luther King Jr. Day: Monday, January 20th
• Presidents' Day: Monday, February 17th
• Memorial Day: Monday, May 26th
• Juneteenth National Independence Day: Thursday, June 19th
• Independence Day: Friday, July 4th
• Labor Day: Monday, September 1st
• Columbus Day: Monday, October 13th
• Veterans Day: Tuesday, November 11th
• Thanksgiving Day: Thursday, November 27th
• Christmas Day: Thursday, December 25th

Importance of Federal Holidays

Federal holidays significantly influence businesses and employees. Forbusinesses, these holidays can impact production schedules, staffing levels, and overalloperational efficiency. They can also affect consumer behavior, especially in the retail and service industries. Ask Black Friday.

For employees, federal holidays provide a much-needed break from the routine. It means quality time with family and friends. These holidays contribute to employee morale and job satisfaction.

Legal Requirements for Observance and Pay

While the federal government mandates specific holidays for its employees, private businesses have more flexibility. There's no federal law requiring private companies to provide paid time off for federal holidays. However, many businesses do offer these as a benefit to attract and retain employees.

State laws may also influence holiday observance requirements for businesses. Some states have specific regulations regarding paid time off for certain holidays. For instance, in New York, full-time salaried employees are eligible for time off with pay on regular holidays like New Year's Day, Memorial Day, and Christmas Day. But part-time salaried employees are only eligible for paid time off on regular holidays if their work schedule coincides with the holiday.

What are Fringe Benefits? →

Federal Holidays and Workforce Planning

As we said, although federal holidays aren’t mandatory for the private sector, most companies offer them as a core benefit. Because of this, these holidays can cause problems with workforce scheduling, especially in industries like manufacturing or healthcare.

Factors to consider when scheduling around federal holidays include:

• Overtime requirements: Define if overtime is necessary to cover shifts during holiday periods.
• Shift differentials (also known as a pay bump): You might need to pay extra cash during unplanned shifts. It allows you to be flexible—and give employees a reason to work more—while you keep up with your business needs.

Strategies for Managing Workforce During Holidays

A combination of planning and communication is needed for effective workforce management during holidays. Some strategies include:

• Preparation and timetables: Schedule in advance—and be clear about who's covering which day well before the calendar month. Keep employees updated on holiday schedules and expectations.
• Overtime management: Put up clear overtime rules and guidelines.
• Holiday rotation: Rotate holiday schedules so that employees are scheduled for their proportionate share of extra work. Don't overload a single employee with covering every holiday, even if you're paying fairly.
• Employee recognition: Acknowledge and reward employees for their flexibility and dedication during holiday periods. Besides the shift differentials, you can offer compensatory time off.

With a bit of planning and the right strategies, you can manage your workforce and keep things running smoothly during those holiday breaks. An employee management tool like TalentHR’s can be a game-changer here. You can sign up in seconds and try it out for free for as long as you please.

Federal Holidays Related FAQs

How are federal holidays determined in the United States?

Federal holidays are established by the Congress, and the President signs it (that’s why Juneteenth, the most recently established holiday, is treated as a Presidential policy). These holidays are observed by federal government employees and many private businesses.

How do federal holidays impact state holidays?

While some states observe the same holidays as the federal government, many states have their own unique holidays. It's a must for businesses to be aware of both federal and state holidays to stay in compliance.

How do companies typically compensate employees who work on federal holidays?

Many companies offer premium pay to employees who work on federal holidays. This can be in the form of overtime pay, holiday pay, or a combination of both. Some companies also offer compensatory time off as an alternative.

What happens if a federal holiday falls on a Sunday or weekend?

If a holiday falls on a weekend, it is celebrated on the closest weekday, like the preceding Friday or the following Monday.