The meaning of a federal holiday is narrower than most people assume: it is a day designated by federal law, in 5 U.S.C. § 6103, on which federal government employees receive a paid day off.1Office of the Law Revision Counsel. 5 U.S. Code 6103 – Holidays The designation applies to the federal workforce. It does not close private businesses, does not bind state governments, and does not entitle anyone outside federal employment to time off or extra pay. What looks like a nationwide shutdown on Thanksgiving or the Fourth of July is a mix of custom, state law, and the practical fact that banks can’t operate when the Federal Reserve is closed.
The 11 Days on the Federal List
Congress has designated 11 recurring legal public holidays. In 2026 they fall on:
- New Year’s Day, Thursday, January 1
- Birthday of Martin Luther King, Jr., Monday, January 19
- Washington’s Birthday, Monday, February 16
- Memorial Day, Monday, May 25
- Juneteenth National Independence Day, Friday, June 19
- Independence Day, observed Friday, July 3 (the actual date falls on Saturday)
- Labor Day, Monday, September 7
- Columbus Day, Monday, October 12
- Veterans Day, Wednesday, November 11
- Thanksgiving Day, Thursday, November 26
- Christmas Day, Friday, December 25
Juneteenth is the most recent addition, signed into law in June 2021 — the first new federal holiday in nearly four decades. Several of the days are pinned to a specific Monday rather than a calendar date, which produces a three-day weekend for anyone on a standard schedule.1Office of the Law Revision Counsel. 5 U.S. Code 6103 – Holidays
Who Actually Gets the Day Off
Federal holidays guarantee paid time off only for federal employees. The Fair Labor Standards Act does not require private employers to give workers any time off, paid or unpaid, on federal holidays.2U.S. Department of Labor. Holiday Pay Your employer can open on Christmas, schedule a full shift on July 4, and pay you your ordinary wage for the day without breaking federal law.
There is also no federal requirement for time-and-a-half or any other premium rate on holidays. That common belief is a myth. Holiday pay, premium rates, and paid holiday leave in the private sector exist only where an employer voluntarily offers them or where a union contract requires them.3U.S. Department of Labor. Vacation Leave If your handbook or contract is silent, you aren’t entitled to anything extra.
Some states and localities impose their own rules on specific industries, such as premium pay for retail workers on certain days or limits on operating hours. Those requirements vary widely and typically reach only narrow slices of the workforce.
Federal workers who aren’t required to report on a holiday receive their regular pay for an excused absence. Those called in to work — common in law enforcement and healthcare — receive holiday premium pay in addition to their normal compensation.4U.S. Office of Personnel Management. Holidays Work Schedules and Pay
Why Banks and Markets Close Anyway
Banks close on federal holidays because the Federal Reserve does. The Fed follows the same holiday calendar as the rest of the federal government, so payment systems like Fedwire and the Automated Clearing House network go offline. Without those systems, banks cannot process interbank transfers, clear checks, or settle transactions. Staying open makes little sense when money can’t move, so nearly every bank follows the Fed’s schedule. This is why the days are often called “bank holidays,” even though the legal designation is about federal personnel, not banking.
Stock exchanges like the NYSE and NASDAQ also close on most federal holidays, but their schedules don’t match exactly. Columbus Day and Veterans Day are examples where the markets trade while banks stay closed.
What Happens When a Holiday Falls on a Weekend
For federal employees on a standard Monday-through-Friday schedule, the observance shifts. A Saturday holiday moves to the preceding Friday, and a Sunday holiday moves to the following Monday.5U.S. Office of Personnel Management. Federal Holidays Independence Day 2026 is the clearest example: July 4 lands on a Saturday, so federal offices observe the holiday on Friday, July 3.1Office of the Law Revision Counsel. 5 U.S. Code 6103 – Holidays
The Inauguration Day Exception
Every four years, January 20 is an additional federal holiday, but only for federal employees in the Washington, D.C., area. The statute covers workers in D.C. itself, plus Montgomery and Prince George’s Counties in Maryland, Arlington and Fairfax Counties, and the cities of Alexandria and Falls Church in Virginia.1Office of the Law Revision Counsel. 5 U.S. Code 6103 – Holidays Federal employees outside that region don’t get the day. The next Inauguration Day holiday falls on January 20, 2029.
There Is No “National Holiday” in U.S. Law
The phrase “national holiday” is common in conversation but carries no legal meaning here. The federal government has no authority to compel state governments or private businesses to close on any particular day. Regulating non-federal employers and state operations is a matter for the states.
Each state decides for itself which holidays to recognize for its own employees and public offices. Most adopt the federal calendar for convenience, but nothing requires them to. Some observe days the federal government doesn’t recognize; a few skip certain federal holidays. That’s why a state DMV may be open on a day the post office is closed.
How Days Get Added — and How One-Off Closures Work
Putting a new day on the permanent list takes an act of Congress. A bill amends 5 U.S.C. § 6103, both chambers pass it, and the President signs it. That’s the path Juneteenth took in 2021.
The President can also close federal offices on a one-time basis by executive order, usually for a day of mourning or to extend an existing holiday. In December 2025, the President ordered executive departments closed on December 24 and December 26, bracketing Christmas Day.6The White House. Providing for the Closing of Executive Departments and Agencies of the Federal Government on December 24, 2025, and December 26, 2025 Those closures grant administrative leave to federal workers for the days specified. They don’t create a new holiday, and they don’t bind future presidents.
Religious Holidays Aren’t on the List
The federal calendar is secular, so religious observances important to many workers aren’t covered. If you need time off for a religious holiday your employer doesn’t recognize, Title VII of the Civil Rights Act gives you some protection. Employers must make a reasonable effort to accommodate sincerely held religious practices, including requests for time off, unless doing so would impose a substantial burden on the business.7U.S. Equal Employment Opportunity Commission. What You Should Know: Workplace Religious Accommodation
The Supreme Court raised the bar for employers in Groff v. DeJoy in 2023, holding that denying a religious accommodation requires more than a trivial cost. The employer must show a substantial burden considering the nature, size, and operating costs of the business.8U.S. Equal Employment Opportunity Commission. Religious Discrimination The belief doesn’t have to be part of an organized religion or widely practiced. It has to be sincerely held. Common accommodations include schedule swaps, shift trades, or using personal leave.