The HR Dictionary

Paid Holidays

Paid holidays, which are typically connected to nationally observed holidays, are days off from work that employees receive in exchange for payment. The legislation does not mandate their use. Paid holidays are frequently a component of a broader pay package that also includes other paid time off, such vacation and sick days.

The Fair Labor Standards Act (FLSA) does not require businesses to compensate workers for time off for vacation or other holidays. Employers (or the employee's agent, like a union, in negotiations) decide on paid holidays, paid vacation, and paid sick leave.

The most common paid holidays in the U.S. are:

  • New Year's Day
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas Day

The following holidays may also be observed by other organizations:

  • Easter
  • Good Friday
  • Friday after Thanksgiving
  • Christmas Eve
  • New Year's Eve

Most of today’s HRIS solutions can effectively manage PTO/Leave to calculate the amounts owed under paid holidays. Most advanced HRIS solutions contain the ability to set pay and leave policies to automate all these administrative HR tasks and save time spent on manual calculations.