Holiday pay is extra pay or paid time off for a holiday, set by the employer’s policy or a contract. Federal law does not require it: the Fair Labor Standards Act does not require pay for holidays off or a premium for working on one. Enter your rate, the hours you worked on the holiday and your employer’s holiday rate to see the pay, any paid holiday hours, and whether the week’s hours reach overtime.
$880.00 gross pay for the week, before overtime
- Holiday hours worked
- $240.00
- Paid holiday (not worked)
- $0.00
- Other hours
- $640.00
- Hours worked this week
- 40
40 hours worked this week — not over 40, so no weekly overtime is due under the FLSA.
At $20.00 an hour, 8 holiday hours at 1.5× pay $240.00; with 0 paid holiday hours and 32 other hours, gross pay for the week is $880.00 before any overtime.
How it’s calculated
Holiday pay = holiday hours worked × hourly rate × your employer’s holiday rate, plus any paid holiday hours you did not work × hourly rate. The Fair Labor Standards Act does not require extra pay for working on a holiday or pay for holidays off; these are set by your employer’s policy, a union contract or, in a few places, state or local law.
Overtime is separate: hours actually worked over 40 in the workweek need overtime at 1.5 times the regular rate. Paid holiday hours you did not work are not hours worked. A holiday premium of at least 1.5 times can be credited toward the overtime that is due, so the overtime line shows the most that could be added, not a certain amount.
Worked example with your numbers
- Holiday hours worked: 8 h × $20.00 × 1.5 = $240.00.
- Paid holiday not worked: 0 h × $20.00 = $0.00.
- Other hours that week: 32 h × $20.00 = $640.00.
- Total before overtime: $240.00 + $0.00 + $640.00 = $880.00.
| Holiday rate | Per hour | 8-hour shift | 10-hour shift | 12-hour shift |
|---|---|---|---|---|
| 1× | $20.00 | $160.00 | $200.00 | $240.00 |
| 1.5× | $30.00 | $240.00 | $300.00 | $360.00 |
| 2× | $40.00 | $320.00 | $400.00 | $480.00 |
| 2.5× | $50.00 | $400.00 | $500.00 | $600.00 |
| 3× | $60.00 | $480.00 | $600.00 | $720.00 |
How holiday pay is usually calculated
- Working the holiday: hours worked × hourly rate × the holiday rate in your policy (for example 1.5 for time and a half).
- Paid holiday off: the hours of a normal shift × hourly rate, if your employer offers paid holidays.
- Overtime: separate — hours actually worked over 40 in the workweek. Paid holiday hours you do not work are not hours worked.
Example: at $20 an hour, an 8-hour Thanksgiving shift at time and a half pays 8 × $20 × 1.5 = $240. With 32 other hours that week you worked 40 hours, so no weekly overtime is due.
Holiday premium and overtime
When an employer pays at least 1.5 times the regular rate for holiday work, that premium is left out of the regular rate and can be credited toward overtime due for the same week (29 CFR 778.219). That is why the calculator shows the overtime premium as the most that could be added, not a fixed amount — use the overtime calculator for the full week.
A few states and cities have rules for particular industries; check your state labor department. Federal holidays and their observed dates are on the federal holidays page.
Frequently asked questions
Is holiday pay required by law?
Not under federal law. The FLSA does not require pay for holidays off or extra pay for working on holidays; it is a matter of agreement between employer and employee. Some state or local laws cover specific situations.
Do I get overtime for working on a holiday?
Only if your hours actually worked that week go over 40 (or your state’s daily limit). Working on a holiday does not by itself require overtime pay.
Do paid holidays count toward overtime?
No. Hours paid but not worked, such as a paid holiday off, are not hours worked for overtime under the FLSA, unless your employer’s policy counts them.
What is time and a half on a holiday?
1.5 times your hourly rate for each hour worked on the holiday. At $18 an hour that is $27 an hour, or $216 for an 8-hour shift.
Do part-time employees get holiday pay?
Only if the employer’s policy gives it to them; federal law does not require holiday pay for any employees.