Federal holiday calendar: 2026 dates, payroll rules, and employer obligations

TL;DR

There are 11 annual U.S. federal holiday dates. They primarily govern federal offices and employees, not private-company leave or premium pay. In 2026, Independence Day falls on Saturday, July 4, so covered federal employees observe it on Friday, July 3. We recommend checking payroll, banking, and staffing schedules around that date.

Updated October 5, 2026. This article provides general operational information, not individualized legal, tax, banking, or payroll advice.

Table of contents

• Complete list of the 11 U.S. federal holidays in 2026
• What a federal holiday means—and what it does not mean for private employers
• Must private employers provide paid federal holidays or time-and-a-half?
• How holiday pay and overtime are calculated
• How federal holidays affect ACH, direct deposit, and payroll cutoffs
• Holiday scheduling for hourly staff, contractors, and 24/7 property teams
• Building a fair holiday framework across states and countries
• What to include in a written federal holiday policy
• 2027 federal holidays for advance payroll and staffing planning
• Federal holiday FAQ: February 25, Yom Kippur, Christmas Eve, and Election Day
• FAQ
• Build holiday dates into payroll operations

Complete list of the 11 U.S. federal holidays in 2026

Federal law recognizes 11 annual legal public holidays under 5 U.S.C. § 6103. States, municipalities, schools, banks, and private employers may use different closure calendars.

2026 federal holiday dates and observed dates

“Washington’s Birthday” is the official federal name, although Presidents Day is widely used. Columbus Day also remains the federal name even where another observance is recognized.

For broader planning, we combine this list with the number of working days in 2026, employee leave, and company closures.

Why July 4 is observed on July 3 in 2026

For covered federal employees with a standard Monday-to-Friday schedule, a Saturday holiday is generally observed on the preceding Friday. Independence Day therefore remains July 4, while the federal observed date is July 3.

We recommend reviewing bank availability, payroll cutoffs, tax deadlines, office closures, customer coverage, and invoice approvals. Confirm each deadline with the relevant provider or agency.

What a federal holiday means—and what it does not mean for private employers

A federal holiday primarily affects federal offices and covered federal employees. It generally does not require a private employer to close, provide paid leave, or pay a holiday premium.

Private businesses may schedule work on these dates, subject to applicable laws, contracts, collective bargaining agreements, federal contract terms, accommodation duties, and company policy.

Federal holidays vs. state, religious, local, and company holidays

Each category has a different source:

• Federal holidays: Established by federal law for federal operations.
• State or local holidays: Set by the relevant jurisdiction.
• Religious observances: May require accommodation but do not automatically create paid leave.
• Company holidays: Created through policy, contract, or established practice.
• Union holidays: Governed by the collective bargaining agreement.

A public-office closure does not automatically give private-sector employees paid leave.

Inauguration Day has limited geographic and employee coverage

Inauguration Day applies only to certain federal employees in a designated Washington, D.C. area. It is not one of the 11 nationwide annual federal holidays.

We add it to an operations calendar only when it may affect staff, customers, government access, or contract performance.

Must private employers provide paid federal holidays or time-and-a-half?

Generally, no. The Department of Labor states that the Fair Labor Standards Act (FLSA) does not require payment for holidays not worked. It also does not require premium pay solely because an employee works on a holiday.

An obligation may instead come from state or local law, an employment or union agreement, a federal contract or wage determination, an offer letter, a handbook, or company policy.

When company policy or a contract creates a holiday-pay obligation

Policies and agreements can define eligibility, rates, recognized dates, waiting periods, part-time treatment, and attendance conditions.

We recommend applying published terms consistently. Attendance rules must also account for protected leave, accommodations, paid sick leave, and contractual rights.

Federal contractor obligations require contract-specific review

Federal contractor requirements depend on the contract, worker classification, applicable labor standards, and wage determination. The Service Contract Act or Davis-Bacon and Related Acts may require holiday benefits in specific circumstances, but there is no universal benefit for every federal contractor.

How holiday pay and overtime are calculated

Paid but unworked holiday hours generally do not count as hours worked toward the FLSA’s 40-hour weekly overtime threshold. Hours actually worked on a holiday do count.

State rules, wage orders, union agreements, and industry requirements may differ. Accurate hours-worked calculations are essential.

Hourly employee holiday-pay examples

If an employee records 32 worked hours and eight paid holiday hours, all 40 hours may be paid, but only 32 are generally counted as hours worked for federal overtime.

If the employee actually works more than 40 hours in the workweek, federal overtime may apply. A separate holiday premium depends on the governing policy, agreement, or law and may affect the regular-rate calculation.

Salaried exempt and salaried nonexempt employees

Salary alone does not establish exempt status. Employers should review salary-basis rules before making deductions when an office closes.

Salaried nonexempt employees remain eligible for overtime. Payroll must track their actual work hours and use the applicable regular-rate method.

What happens when a holiday falls during PTO or another leave

The policy should say whether the holiday replaces a PTO day, is paid separately, or remains charged against leave. It should also address medical, parental, disability, military, and unpaid leave.

There is no universal answer, so we recommend following the written rule while preserving legal and contractual rights.

How federal holidays affect ACH, direct deposit, and payroll cutoffs

Observed dates may affect Federal Reserve services, banks, payroll processors, and other payment providers. Their schedules are not always identical.

For payments due around Independence Day 2026, verify whether Friday, July 3 affects wages, contractor invoices, payroll taxes, reimbursements, or international transfers.

Work backward from the promised pay date

Confirm that the target settlement date is available, then identify the processor cutoff, prefunding deadline, approval time, timesheet deadline, and correction window.

We set internal deadlines earlier than the provider’s final cutoff. A closure does not automatically excuse late wage payment.

Holiday payroll submission checklist

Before a closure:

• Confirm banking and provider schedules.
• Verify timesheet, funding, tax, and file deadlines.
• Assign primary and backup approvers.
• Test payment access.
• Notify workers of changed deadlines.
• Save confirmations and reconcile payments.

We do not rely on a universal “submit two days early” rule because provider windows vary.

Cross-border payments can face more than one holiday calendar

International payments may be affected by holidays in the sending and receiving countries, intermediary banks, currencies, weekends, and time zones.

For teams using international payroll built for founders, shared approval visibility and a combined closure calendar can reduce gaps. Providers and local advisers should still confirm specific requirements.

Holiday scheduling for hourly staff, contractors, and 24/7 property teams

A practical policy distinguishes among office staff, support teams, maintenance workers, contractors, and managers. It should explain how shifts are assigned and how premiums, on-call work, callbacks, and overtime interact.

A practical coverage model for property managers and maintenance teams

Identify essential safety, access, habitability, and urgent-repair services. Name the on-call worker, backup, approving manager, vendors, escalation path, and spending limits.

Nonexempt employees must record compensable work, including authorized remote responses and emergency callbacks.

Contractors should follow contract terms, not the employee holiday policy

Contractor agreements should state whether services continue during closures, when invoices are due, and whether approvers and systems will be available. Our guide to paying international contractors explains the wider workflow.

Contract language does not override worker-classification rules based on the actual relationship.

Holiday-work authorization and employee communication

Before the holiday, communicate who must work, who may volunteer, which pay rules apply, and who handles coverage or payroll problems.

Unauthorized work may lead to discipline, but all hours actually worked must still be recorded and paid.

Building a fair holiday framework across states and countries

Using the U.S. calendar for every global employee is not always practical or compliant. We recommend starting with local statutory holidays, then adding company closures and floating days where permitted.

Local holidays plus floating days

Define request procedures, approval rules, increments, carryover, forfeiture, and treatment at separation. All terms remain subject to local law.

Religious accommodation is separate from federal holiday status

Yom Kippur and other religious observances are not federal holidays, but employers may have accommodation duties. Options can include shift swaps, flexible hours, floating leave, remote work, or unpaid leave.

Prevent approval gaps across time zones

Maintain a calendar that combines relevant U.S., local, banking, and company closures. Assign backup approvers and test their access before overlapping holidays.

What to include in a written federal holiday policy

A holiday policy should cover closures, eligibility, compensation, coverage, and local variations. We recommend reviewing it whenever the business adds a jurisdiction, union, federal contract, or payroll provider.

Holiday policy template fields

Include:

• Scope, locations, owner, and effective date
• Eligible groups and part-time rules
• Recognized and observed dates
• Floating days and local variations
• Coverage and work authorization
• Premiums, overtime, PTO, and leave interactions
• Overnight work, callbacks, and time zones
• Corrections, accommodations, and escalation contacts

A policy cannot waive statutory wages or overtime.

Printable calendar fields that make the list operational

Record actual and observed dates, office status, payroll cutoffs, funding deadlines, approvers, coverage owners, and local banking or contract notes. Add provider dates only after confirming them.

2027 federal holidays for advance payroll and staffing planning

Reconfirm official schedules and provider cutoffs before finalizing payments.

Weekend holidays and observed dates in 2027

Juneteenth and Christmas fall on Saturdays, so their federal observed dates move to the preceding Fridays. Independence Day falls on Sunday and is observed federally on Monday.

Use the 2027 calendar before renewing contracts and staffing plans

Add observed dates to payroll, support, invoice, and on-call calendars. Check whether contracts promise particular closures or premiums.

Federal holiday FAQ: February 25, Yom Kippur, Christmas Eve, and Election Day

A business, school, state, municipality, or religious community can recognize a date without making it a federal holiday.

Is February 25, 2026 a federal holiday?

No. February 25, 2026 is not one of the 11 annual federal holidays.

Is Yom Kippur a federal holiday?

No. It is a Jewish religious observance. Employers should separately assess accommodation and leave obligations.

Are Christmas Eve, Election Day, or the day after Thanksgiving federal holidays?

They are not annual nationwide federal holidays. Christmas Eve can be an observed federal holiday when Christmas falls on Saturday, as it does in 2027.

Is today a federal holiday?

Compare the date with the official federal schedule, then check company, state, local, banking, and provider calendars.

Build holiday dates into payroll operations

Build observed dates, funding deadlines, approval owners, local calendars, and backup coverage into the payroll workflow before the next closure. Review Shor’s international payroll platform to coordinate payments and approvals across countries.