What Is Holiday Pay?

Holiday pay refers to any form of compensation that an employer offers to their employees during holidays, such as paid time off or bonuses for work performed on holidays. In the United States (U.S.), it is common practice to pay employees “time-and-a-half” or 150% of normal hourly wages for work performed during holidays.

What are holiday pay requirements?

While many countries require employers to provide paid time off (PTO) during important holidays, U.S. federal law does not require employers to provide paid holidays off or additional compensation for work performed on holidays. Employers are only required to provide reasonable accommodation to employees for the celebration of religious holidays. National, state, or religious holidays can be offered as paid holidays by employers, but there is no federal law regulating them. 

See a list of federal holidays here.