You want to keep your business running like a well-oiled machine, but you also need to comply with employment laws and ensure you’re treating your employees fairly.
With that in mind, you have a number of questions rattling around in your brain. What are the paid holidays by law? Do you need to pay employees extra on those days? Is it different for hourly or salaried employees? What about religious holidays?
Have no fear—these types of regulations can get complicated, and it’s totally normal to have questions. We’re answering some of the most common questions about paid holidays here, so you can make sure you comply with any laws and, more importantly, treat your employees right.
What Are The Federally Recognized Holidays In The United States?
There are 11 federally-recognized holidays in the United States. According to the U.S. Office of Human Resources Management, these holidays are:
- New Year’s Day: January 1
- Martin Luther King Jr.’s Birthday: Third Monday in January
- Washington’s Birthday: Third Monday in February
- Memorial Day: Last Monday in May
- Juneteenth: June 19
- Independence Day: July 4
- Labor Day: First Monday in September
- Columbus Day: Second Monday in October
- Veterans’ Day: November 11
- Thanksgiving Day: Fourth Thursday in November
- Christmas Day: December 25
In the Washington D.C. metro area, Inauguration Day (which happens on January 20 every four years) is also a federal holiday. If January 20 falls on a Sunday, then Inauguration Day is moved to the following Monday, January 21.
What does it mean if a holiday is federally-recognized? Well, not quite as much as you might think. Basically, all non-essential federal government offices are closed, the stock market ceases trading, and all federal employees are paid for that day—even if they aren’t working.
Are Employers Required To Give Employees Those Holidays Off From Work?
The answer to this question depends on whether an employer is a federal employer or a private sector employer.
Federal Employers And Federal Holidays
All non-essential government offices are closed on federal holidays, which means those federal employees are given the day off.
However, there are still federal employees whose offices are open and need to work on those federal holidays. In those cases, most of them are given a replacement day off (often called an “in-lieu-of holiday”) to make up for that missed holiday.
Of course, there are some exceptions, including:
- Federal employees who work intermittent schedules (daily, hourly, piece-work, etc.) don’t receive paid holidays.
- Part-time employees who have a holiday fall on a day when they wouldn’t normally be working don’t get a replacement day off.
Private Sector Employers And Federal Holidays
Things are totally different for employers in the private sector. Private employers aren’t required by federal law to give employees any of the federal holidays off. However, many of them offer at least some of the federal holidays as paid time off (PTO).
As data from the Bureau of Labor Statistics highlights, Martin Luther King Jr.’s birthday, Washington’s birthday (also known as President’s Day), Columbus Day, and Veterans’ Day are less common for private sector employees to have off. Most private sector employers offer:
- New Year’s Day: January 1
- Memorial Day: Last Monday in May
- Independence Day: July 4
- Labor Day: First Monday in September
- Thanksgiving Day: Fourth Thursday in November
- Christmas Day: December 25
What About Religious Holidays?
While employers should give “reasonable accommodations” to employees who are observing religious holidays (such as Good Friday), that’s determined on a case-by-case basis and is usually established in the employee handbook.
The rules around religious holidays also differ between federal and private sector employers:
- Federal Employers: Only allowed to give employees a religious holiday as PTO if the employee can offer a legitimate reason for doing so. Otherwise, it violates the separation of church and state.
- Private Employers: Aren’t bound by as much legal red tape and regulations, so they may choose to close on religious holidays or give employees those days off.
Are Employers Required To Provide A Certain Number Of Paid Holidays?
Yes, federal employers are required to give those 11 federal holidays off to full-time employees or offer replacement holidays to make up for them.
However, private sector employers aren’t actually legally obligated to provide any paid holidays to employees. In the eyes of the law, those federally-recognized holidays are still viewed as regular work days.
Are Employees Entitled To Extra Pay For Working A Holiday?
So, maybe you aren’t required to give employees the day off on those federally-recognized holidays. But, if you have them work, do you need to pay them more? In most cases, no.
Again, federal employees should have the day off and be paid for it.
However, private sector employers do not need to provide holiday pay to employees who work on these federal holidays. This is spelled out by the Department of Labor in the Fair Labor Standards Act (FLSA), which states that employers do not need to pay employees for time that isn’t actually worked.
While it’s not legally required, many employers do offer holiday pay (such as double time or time and a half) to their employees to reward and incentivize them for working on those days. Keep in mind that while holiday pay isn’t mandatory, standard rules about overtime pay will still apply on those days—since they’re viewed as a normal workday.
There Are A Few Holiday Pay Exceptions…
Of course, when it comes to employment law, very few things are straightforward. This means that there are a couple of state laws that impact holiday pay that you should know about.
- Massachusetts “Blue Laws”: These laws require some businesses to have special permits to be open on Sundays, as well as pay their employees above their regular rate (known as “premium pay”) on Sundays and some legal holidays.
- Rhode Island Labor Standards: These standards state that businesses need to pay time and a half to employees who work on Sunday and federal holidays (except for the birthday of Martin Luther King Jr. and President’s Day).
Paid Holidays By Law: What Employers Need To Know
Do you need to give your employees vacation time for federal holidays? Well, it depends. If you’re a federal employer, then yes, employees are entitled to these federal holidays (or replacement days) off.
But, things aren’t so definite in the private sector. Generally, it’s up to the employer to determine how they’ll handle federal holidays, holiday pay, scheduling and more.
When you’ve sorted out how you want to treat federally-recognized holidays, it’s in your best interests to spell those rules out in your employee handbook. That will proactively clear up any confusion and ensure you and your employees are on the same page about how you’ll handle holiday time, vacation days, and any other PTO or employee benefits.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe