Under the federal Fair Labor Standards Act (FLSA), pay for a holiday you did not work generally does not count as hours worked toward the 40-hour weekly overtime threshold. Hours you actually work on a holiday do count. For most covered, nonexempt employees, federal overtime is due after more than 40 hours worked in the employer’s fixed workweek. A state rule, employment agreement or employer policy may provide more generous pay.
The key is to keep two totals separate: hours actually worked and hours paid. A paycheck may show more than 40 paid hours without any federal overtime hours.
Holiday off versus holiday worked
| Situation | Counts toward federal weekly overtime hours? | What to check |
|---|---|---|
| Eight hours of holiday pay for a day you did not work | Generally no | The payment may still be owed under your employer’s policy or agreement. |
| Eight hours actually worked on a holiday | Yes | Include the work in that workweek’s hours, even if a separate holiday premium also applies. |
| A paid holiday off followed by extra hours on another day | Count the extra work, but not the unworked holiday hours | Add all hours actually worked in the fixed workweek before deciding whether the total exceeds 40. |
The FLSA does not itself require an employer to provide paid holidays or to pay double time simply because someone works on a holiday. Holiday benefits and premiums may come from another applicable rule, a contract or the employer’s policy.
Example 1: 38 hours worked plus eight hours of holiday pay
Suppose an hourly employee earns $25 per hour, works 38 hours during the workweek and receives eight hours of pay for a holiday taken off. This is a hypothetical example with one constant hourly rate.
- Hours actually worked: 38
- Paid holiday hours not worked: 8
- Total hours paid: 46
- Federal overtime hours from this schedule: 0
The simple gross arithmetic is 38 × $25 + 8 × $25 = $1,150. The employee has 46 paid hours, but only 38 hours worked. The unworked holiday hours do not push the employee over the federal 40-hour work threshold.
Example 2: 42 hours worked plus eight hours of holiday pay
Now suppose the employee actually works 42 hours in the fixed workweek and also receives eight hours of holiday pay for a different day not worked. At the same $25 hourly rate, and assuming no other pay that changes the regular rate:
- Hours actually worked: 42
- Federal overtime hours: 2
- Regular pay for 40 worked hours: 40 × $25 = $1,000
- Overtime pay for two worked hours: 2 × $37.50 = $75
- Separate pay for the unworked holiday: 8 × $25 = $200
The illustrated gross total is $1,275. The two overtime hours arise from the 42 hours actually worked, not from adding the holiday benefit to the weekly hours. Actual pay can differ if another compensation item changes the regular rate or a more generous rule applies.
What if you work on the holiday?
Record the time you actually worked on the holiday just as you would work on another day. If those hours take a covered, nonexempt employee over 40 hours worked in the fixed workweek, the federal overtime rule applies to the hours over 40. Merely working on a holiday does not create a separate federal double-time requirement.
An employer may promise additional holiday pay. The way a holiday-work premium interacts with the FLSA regular rate and any overtime already due depends on how the premium is structured. Certain qualifying premiums of at least one and one-half times the established rate can be excluded from the regular rate and credited toward statutory overtime; a payment labeled “holiday bonus” does not automatically qualify. If your paycheck includes both types of pay, review the policy and the pay statement rather than simply adding a second 1.5× calculation.
Check your own workweek
- Find the fixed workweek. It is a recurring seven-day, 168-hour period set by the employer. It may start on a day other than Sunday or Monday.
- Add hours actually worked. Include work performed on the holiday and on other days. Keep paid time off in a separate column.
- Compare worked hours with the applicable threshold. The usual federal threshold is more than 40 hours worked in a workweek for covered, nonexempt employees.
- Check additional pay rules. Look at your state’s requirements and any applicable policy or agreement for holiday benefits and premiums.
Enter only hours actually worked in the federal overtime calculator. Its result does not add a separate paid-holiday benefit or determine how a holiday-work premium affects the regular rate. If you need to reconstruct daily punches first, use the time card calculator.
Frequently asked questions
Do eight hours of paid holiday time put me over 40 hours?
Not by themselves under the federal hours-worked test. For example, 38 hours of work plus eight unworked holiday hours is 46 paid hours but 38 worked hours. A more generous policy or applicable rule may treat the benefit differently for its own purposes.
Is working on a holiday automatically overtime?
No under the general FLSA rule. The holiday hours are actual work and count toward the weekly threshold, but the calendar date alone does not require federal overtime or double time.
Can an employer pay more than the federal minimum rule?
Yes. A policy, contract or applicable state rule may provide holiday pay, a holiday-work premium or a more generous way to calculate overtime. Check the terms that apply to your job.
Sources and methodology
Reviewed October 8, 2026. The treatment of paid holidays not worked and work performed on holidays was checked against the U.S. Department of Labor’s FLSA Hours Worked Advisor. The weekly overtime threshold and fixed-workweek rule were checked against Fact Sheet #23. The explanation of holiday payments and qualifying premiums was checked against Fact Sheet #56A. Both dollar examples use hypothetical inputs and simple arithmetic. This guide gives general information, not a determination of pay owed in an individual case.