Federal holidays are an important part of the American calendar. They give people time to celebrate national events, remember historical figures, and spend time with family.
But for businesses, these holidays also bring questions about employee time off, holiday pay, and payroll schedules.
The United States recognizes 11 federal holidays each year. Most federal government offices close on these days, while private businesses can decide which holidays to observe based on their policies and applicable laws.
For employers, understanding the federal holiday calendar is especially important. A holiday that falls on a regular payday may affect bank processing, direct deposits, and employee payments.
What Are Federal Holidays?
Federal holidays are official holidays recognized by the United States government. They are established by federal law under 5 U.S.C. 6103 and are generally observed by federal government agencies and employees.
On these days, most federal offices close, and eligible federal employees receive holiday benefits according to their work schedules and employment rules.
Many private companies also recognize federal holidays by giving employees paid time off or adjusting their working hours. However, federal holidays do not automatically require every business to close.
For example, a government office may be closed on Veterans Day, while a restaurant, hospital, or retail store may continue operating as usual.
Understanding this difference helps employers create workplace policies that meet business needs while keeping employees informed about their holiday benefits.
How Many Federal Holidays Are There in the United States?
There are currently 11 annual federal holidays in the United States. These holidays recognize important moments in American history, national achievements, and individuals who have made lasting contributions to the country.
Some federal holidays, such as Independence Day and Christmas Day, occur on fixed calendar dates. Others, including Memorial Day, Labor Day, and Thanksgiving, are observed on a particular weekday.
The list of federal holidays has changed over time. One of the most recent additions was Juneteenth National Independence Day, which became a federal holiday in June 2021.
While all 11 holidays are recognized nationally by the federal government, the way they are observed can vary between government agencies, private employers, and individual states.
US Federal Holidays Calendar for 2026 and 2027
Planning ahead is easier when employers have a clear view of upcoming federal holidays. The following calendar includes all 11 US federal holidays and their observed dates for 2026 and 2027.
These dates follow the official holiday schedule published by the US Office of Personnel Management (OPM) for most federal employees who work Monday through Friday.
| Federal Holiday | 2026 Observed Date | 2027 Observed Date |
|---|---|---|
| New Year's Day | Thursday, January 1 | Friday, January 1 |
| Martin Luther King Jr. Day | Monday, January 19 | Monday, January 18 |
| Washington's Birthday (Presidents' Day) | Monday, February 16 | Monday, February 15 |
| Memorial Day | Monday, May 25 | Monday, May 31 |
| Juneteenth National Independence Day | Friday, June 19 | Friday, June 18 |
| Independence Day | Friday, July 3 | Monday, July 5 |
| Labor Day | Monday, September 7 | Monday, September 6 |
| Columbus Day | Monday, October 12 | Monday, October 11 |
| Veterans Day | Wednesday, November 11 | Thursday, November 11 |
| Thanksgiving Day | Thursday, November 26 | Thursday, November 25 |
| Christmas Day | Friday, December 25 | Friday, December 24 |
Employers should review their holiday calendars every year because observed dates can change when holidays fall on weekends.
Which Federal Holidays Fall on Weekends in 2027?
Three federal holidays fall on weekends in 2027, which changes when most federal employees observe them.
Juneteenth falls on Saturday, June 19, so it is observed on Friday, June 18. Independence Day falls on Sunday, July 4, making Monday, July 5 the observed holiday. Christmas Day falls on Saturday, December 25, so it is observed on Friday, December 24.
These changes matter when businesses plan employee shifts, approve vacation requests, and prepare payroll.
It is also important to remember that a federal employee's observed holiday may not match the Federal Reserve's banking holiday schedule.
What Happens When a Federal Holiday Falls on a Weekend?
When a federal holiday falls on Saturday or Sunday, most federal employees receive an alternative day off under federal holiday observance rules.
If a holiday falls on Saturday, it is generally observed on the preceding Friday. If it falls on Sunday, it is generally observed on the following Monday.
For example, Independence Day falls on Saturday, July 4, in 2026. As a result, most federal employees observe the holiday on Friday, July 3.
Private employers can follow the same approach or establish their own holiday schedules, subject to applicable laws and agreements.
Businesses with weekend operations may use different arrangements depending on employee work schedules. This is especially common in healthcare, hospitality, transportation, and retail.
A clear company holiday policy helps employees understand which days are recognized and how those days affect their pay.
Are Federal Holidays Paid Holidays?
Federal holidays are not automatically paid holidays for everyone working in the United States.
Federal employees generally receive paid holiday benefits under applicable federal employment rules. However, most private-sector employers are not required by the federal Fair Labor Standards Act (FLSA) to provide paid time off simply because a federal holiday occurs.
In private companies, holiday pay usually depends on the employer's policies, employment agreements, collective bargaining agreements, and any applicable state requirements.
For example, one business may offer employees paid leave on all 11 federal holidays. Another may recognize only New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas.
Both approaches may be permitted under federal law, although employers still need to consider other applicable requirements.
What Is Holiday Pay?
Holiday pay refers to compensation an employee receives in connection with a recognized holiday.
An employer may provide regular wages when employees take an approved paid holiday. Some businesses also offer additional pay to employees who work on designated holidays.
The amount employees receive depends on the company's holiday pay policy and relevant employment laws or agreements.
For HR and payroll teams, it is important to distinguish holiday pay from regular wages, overtime pay, and paid time off (PTO).
Do Employees Get Extra Pay for Working on Federal Holidays?
Working on a federal holiday does not automatically entitle a private-sector employee to double pay or time-and-a-half under the FLSA.
Some employers voluntarily offer higher rates for holiday shifts. For example, a company may pay an employee extra for working on Thanksgiving or Christmas.
Federal overtime rules are different. Covered, nonexempt employees generally must receive overtime pay of at least 1.5 times their regular rate for hours worked beyond 40 in a workweek.
Working on a holiday does not, by itself, trigger federal overtime pay. State laws and employment agreements may provide additional benefits.
Employers should clearly explain these rules so employees know what to expect before accepting holiday shifts.
How Do Federal Holidays Affect Payroll Processing?
Federal holidays can affect payroll processing, especially when they overlap with regular payment dates.
Many US businesses pay employees through direct deposit using the Automated Clearing House (ACH) network. Standard ACH settlement depends on banking business days, so certain holidays can affect when payments reach employee accounts.
This means employers may need to adjust payroll submission dates, review banking schedules, and confirm processing deadlines before a holiday arrives.
Federal Holidays and Direct Deposit Delays
Direct deposit is one of the most common methods businesses use to pay employees in the United States.
However, regular ACH payments do not settle on Federal Reserve banking holidays or weekends.
For example, Monday, July 5, 2027, is the observed Independence Day holiday. It is also a Federal Reserve banking holiday.
If a company normally pays employees on that Monday, it should check its payroll provider's deadlines and applicable wage payment requirements. The payroll may need to be submitted earlier to make sure employees receive their wages on time.
An important detail is that federal holiday observance and banking operations do not always follow the same schedule.
In 2027, most federal employees observe Juneteenth on Friday, June 18, but Federal Reserve Banks are scheduled to remain open that Friday because the holiday itself falls on Saturday.
Businesses should therefore check the actual Federal Reserve holiday schedule instead of assuming that every observed federal holiday will delay direct deposit.
How Federal Holidays Affect Payroll Deadlines
Payroll involves more than calculating employee salaries. Employers also need to review working hours, approve leave requests, calculate deductions, and submit payment instructions.
When a banking holiday falls close to payday, there may be fewer processing days available.
For example, a business with a Monday payday may need to complete its payroll earlier if that Monday is a Federal Reserve holiday.
Confirming payroll deadlines with the payment provider helps businesses avoid unnecessary delays and supports timely wage payments.
How Holidays Affect Employee Attendance and Leave
Federal holidays can also change how businesses record employee attendance.
If a company provides a paid holiday, employees may receive their normal pay even though they did not work that day. Employees who work during the holiday may receive regular wages or additional holiday pay, depending on company policy.
Payroll teams need accurate records to distinguish holiday hours from actual hours worked.
This matters because paid holiday hours that were not worked generally do not count toward the 40-hour threshold for federal overtime, although employers may use more generous policies.
When holiday calendars, attendance tracking, and leave management are connected, businesses can reduce manual calculations and keep employee records consistent.
Are Federal Holidays the Same as Bank Holidays?
Federal holidays and bank holidays are closely related, but they are not always the same.
Federal holidays determine when most federal government employees receive recognized holidays. Bank holidays affect when financial institutions and payment systems operate.
The Federal Reserve publishes its own holiday schedule, which businesses should check when planning payroll payments.
A useful example is Independence Day in 2026. Most federal employees observe the holiday on Friday, July 3, because July 4 falls on Saturday. However, Federal Reserve Banks are scheduled to remain open on July 3.
The type of payment also matters. Standard ACH settlement follows banking business days, while supported instant payment services may operate on weekends and holidays.
For employers, the safest approach is to confirm payroll cutoffs and settlement dates directly with their bank or payroll provider.
Federal Holidays vs. State Holidays vs. Religious Holidays
Not every holiday celebrated in the United States is a federal holiday.
Federal holidays are established by federal law, while state holidays are recognized by individual state governments. Religious holidays are observed by people and communities according to their beliefs and traditions.
Understanding these differences is important for businesses with employees across multiple states or diverse workplaces.
Federal Holidays
Federal holidays include nationally recognized observances such as Veterans Day, Thanksgiving, Memorial Day, and Labor Day.
These holidays primarily apply to federal government employees. Private businesses may choose to include them in their employee holiday schedules.
State Holidays
Individual states may recognize additional holidays that are not included in the federal holiday calendar.
For example, Massachusetts observes Patriots' Day, while some states recognize Indigenous Peoples' Day in place of or alongside Columbus Day.
Companies operating in different states should review local holiday rules when developing workplace policies.
Religious Holidays
Religious holidays such as Eid al-Fitr, Diwali, Hanukkah, and Good Friday are observed by different communities but are not separate US federal holidays.
Employers may offer floating holidays, flexible work schedules, or approved leave to accommodate religious observances.
Under Title VII of the Civil Rights Act, covered employers may also be required to provide reasonable religious accommodations unless doing so would create an undue hardship.
A thoughtful holiday policy can help businesses respect different traditions while managing employee schedules fairly.
Why Federal Holiday Planning Matters for Businesses
Federal holiday planning is not just about marking dates on a calendar. It affects how businesses manage their employees, organize work schedules, and process payroll.
For small businesses, even a single missed payroll deadline can create problems. Employees expect their wages on time, whether a holiday falls during the workweek or not.
Retail stores and restaurants may also need additional employees during busy holiday periods. Other businesses may decide to close, reduce working hours, or allow employees to use paid leave.
A clear holiday schedule helps managers plan staffing needs and reduces confusion about employee availability.
It also allows payroll teams to prepare payment instructions, overtime calculations, and attendance records before the end of a pay period.
How to Manage Federal Holidays in Payroll
Managing federal holidays becomes easier when businesses have a consistent approach to employee schedules and payroll processing.
Create an Annual Employee Holiday Calendar
Start by identifying the federal holidays your business will observe. Include any relevant state holidays and company-specific days off.
A shared employee holiday calendar helps HR teams and managers plan leave requests, shift schedules, and payroll dates throughout the year.
Review Payroll and Banking Schedules
Before each payroll cycle, check whether the scheduled payment date overlaps with a Federal Reserve holiday.
If necessary, coordinate an earlier payroll submission with your payment provider while following applicable wage payment rules.
Doing this in advance helps prevent payment delays and avoids last-minute changes.
Set Clear Holiday Pay Policies
Employees should understand whether a holiday is paid, whether they are expected to work, and what happens if they work during a recognized holiday.
A written holiday pay policy can explain paid time off eligibility, holiday premiums, and how floating holidays are handled.
Clear communication reduces payroll disputes and helps employees plan their time off.
Keep Employee Attendance Records Accurate
Holiday pay calculations depend on reliable attendance information.
Businesses should maintain clear records of hours worked, approved leave, overtime, and holiday absences.
When those records are updated regularly, payroll teams can process employee payments with fewer corrections.
How PayDay Helps Businesses Manage Federal Holidays and Payroll
Managing federal holidays can become complicated when employee schedules, attendance records, and payroll information are stored in different places.
PayDay helps businesses bring these activities together through a connected payroll and workforce management platform.
With PayDay payroll software for US businesses, employers can maintain federal and company holiday calendars, manage employee leave, track attendance, and process payroll through one system.
The platform also supports payroll calculations, overtime management, employee records, and direct deposit payments.
For growing businesses, having holiday information connected to payroll can reduce manual data entry and make it easier to prepare for upcoming payment dates.
Whether a business has a small team or employees working across several locations, consistent holiday and payroll records help simplify day-to-day administration.
Explore PayDay to learn how integrated payroll software can support employee payments, attendance, leave management, and payroll planning.
Frequently Asked Questions About US Federal Holidays
How Many Federal Holidays Are There in 2027?
There are 11 annual federal holidays in the United States in 2027. These include New Year's Day, Martin Luther King Jr. Day, Washington's Birthday, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas.
What Is the Next Federal Holiday in 2026?
As of October 14, 2026, the next federal holiday is Veterans Day on Wednesday, November 11, 2026. It is followed by Thanksgiving Day on Thursday, November 26, and Christmas Day on Friday, December 25.
Is Juneteenth a Federal Holiday?
Yes. Juneteenth National Independence Day became a federal holiday in 2021. It is celebrated on June 19 and commemorates the end of slavery in the United States.
In 2027, Juneteenth falls on Saturday, June 19, so most federal employees observe it on Friday, June 18.
Is Presidents Day a Federal Holiday?
Yes. Presidents' Day is the common name for the federal holiday officially known as Washington's Birthday.
It is observed on the third Monday in February. In 2027, the holiday falls on Monday, February 15.
Do All Employees Get Federal Holidays Off?
No. Federal employees generally receive holidays according to federal employment rules, but private-sector employees are not automatically entitled to every federal holiday off.
Private employers establish their own holiday schedules, subject to applicable laws and employment agreements.
Are Employers Required to Pay Employees for Federal Holidays?
The Fair Labor Standards Act generally does not require private employers to pay employees for holidays when they do not work.
Holiday pay may depend on company policies, employment contracts, collective bargaining agreements, and other applicable laws.
Are Banks Closed on Federal Holidays?
Many federal holidays are also Federal Reserve banking holidays, but their observed dates do not always match.
Businesses should check the Federal Reserve holiday schedule and their bank's operating calendar before planning payroll payments.
What Happens if Payday Falls on a Federal Holiday?
If payday falls on a day when standard banking settlement is unavailable, employers may need to process payroll earlier.
The payment schedule depends on banking services, payroll processing cutoffs, and applicable wage payment requirements.
Do Federal Holidays Count Toward Overtime?
Paid holiday hours that an employee does not actually work generally do not count as hours worked when calculating overtime under the FLSA.
However, hours actually worked on a holiday count toward the workweek total. Employers may also offer additional benefits under their own policies or applicable agreements.
