Employers should understand what the federal holidays are, and how they may impact areas of the business such as employee scheduling, overtime, payroll processing, and other general business operations.

Federal holidays - also known as public holidays, national holidays, or bank holidays - are designated by the United States government to commemorate significant events, historical figures, or cultural traditions.

These holidays are observed nationwide, and federal employees are typically granted a day off from work. That said, private-sector employers are not required to provide Paid Time Off (PTO) for federal holidays. However, many employers provide these holidays as PTO. An employee handbook should provide insight as to whether or not an employer provides PTO for holidays.

While federal holidays are established by law, each state has the authority to recognize additional holidays specific to its history and traditions.

Understanding federal holidays is important for businesses and individuals alike, as they may impact various aspects of employment, including scheduling, payroll, and more.

2026 Federal Holidays Schedule

The following chart breaks down the federal holidays that are observed in 2026:

*Federal employees in the Washington D.C. area are entitled to a holiday every four years on the day the president is inaugurated.  

**See below for what to do / expect when a holiday falls on a weekend.

Future Federal Holidays Schedule

The following chart breaks down future federal holidays for 2026 and 2027:

**See below for what to do / expect when a holiday falls on a weekend.

Is It Required for Employers to Provide Paid Time Off (PTO) for Federal Holidays?

Whether or not an employer is required to provide PTO for federal holidays depends on whether or not the business is a federal or private-sector employer.

Do Private Employers Need to Give Time Off for Federal Holidays?

Per the Fair Labor Standards Act (FLSA), private-sector employers are not required to provide Paid Time Off (PTO) for federal holidays. However, many private-sector employers may permit employees PTO on federal holidays. If so, this would be indicated in the employer’s employee handbook.

Do Federal or Public Employers Need to Give Time Off for Federal Holidays?

Federal employers must provide full-time employees with time off for the 11 designated federal holidays, or alternatively, offer replacement holidays to compensate him or her.

When a Federal Holiday Falls on a Saturday, Do Employees Get Time Off?

Federal employees with a standard workweek of Monday through Friday, the Friday immediately before the federal holiday is observed as the federal holiday for time-off purposes.

For public or private sector companies, employees should refer to the company employee handbook to see how the employer handles holidays that fall on Saturdays.

It is a good practice for private employers to outline all observed holidays that employees will receive time off on at the start of every year.

When a Federal Holiday Falls on a Sunday, Do Employees Get Time Off?

For federal employees with a standard workweek of Monday through Friday, the Monday immediately following the federal holiday is observed as the federal holiday for time-off purposes.

For public or private sector companies, employees should refer to the company employee handbook to see how the employer handles holidays that fall on Sundays.

It is a good practice for private employers to outline all observed holidays that employees will receive time off at the start of every year.

Do Employers Have to Provide Paid Time Off (PTO) for Religious Holidays?

While not required, all public and private-sector employers are typically encouraged to provide “reasonable accommodations” for employees observing a religious holiday, though these arrangements are determined on a case-by-case basis and are often outlined in the company’s handbook.

The regulations governing religious holidays differ for federal and private-sector employers.

However, private employers have more flexibility and may opt to either close on religious holidays or grant employees time off without being subject to the same legal restrictions.

Are Employers Required to Pay Employees Extra for Working a Holiday?

As mentioned in the Fair Labor Standards Act (FLSA), private-sector employers are not legally required to pay employees extra for working on federal holidays. However, to incentivize employees to work on holidays, many private-sector employers offer time and a half or double-time for hours worked on a holiday.

Public employees required by his or her employer to work on a federal holiday are entitled to holiday premium pay, which is commonly referred to as “double time”. Holiday premium pay is pay for non-overtime hours of work that you are required to work on a holiday. Any public employee working on a federal holiday may not work more than 8 hours that day.

Banking Holidays & Payroll Processing

It is important to remember that banks generally close on federal holidays. Whether or not the holiday falls on or near a scheduled payday, employers should begin to process payroll accordingly to ensure that employees are paid on time.

For instance, if payroll takes two business days to process, make sure that you begin processing your payroll at least one day earlier than usual, as federal holidays are not business days.

Managing Federal Holidays in the Workplace

Although not all employers are required to provide employees with Paid Time Off (PTO) for federal holidays, it is still important to know which days federal holidays fall on and how to manage such holidays, so that employers may adjust work schedules and payroll processing time accordingly.

Federal holidays can pose significant challenges for employers, especially with varying requirements across different states. Without the right tools and solutions in place, administering PTO for federal holidays or otherwise can be complex and time-consuming.

Employers grappling with overtime or PTO for federal holidays or other scenarios should consider seeking help from a trusted HR and payroll provider, or explore modern time and attendance and payroll processing solutions to help formalize and streamline back-office processes like these.

Looking for more guidance on federal holiday compliance? Contact us today or connect with a provider that can help.