What Is A Federal Holiday, And What Days Are They?

Federal holidays are nationally recognized days off for government employees, and WHAT.EDU.VN is here to provide you with all the details. These holidays often affect business operations and services. We’ll explore their significance, history, and impact, clarifying everything from national holidays to public holidays and government holidays.

1. What Is A Federal Holiday And Why Do They Exist?

A federal holiday in the United States is a day designated by the U.S. Congress when most federal government offices are closed. These holidays are established in Title 5 of the United States Code, Section 6103. Federal holidays exist to commemorate significant events, people, or cultural aspects of the nation’s history and values. According to research from the Congressional Research Service, these holidays provide a uniform day of celebration and remembrance for the entire country.

Federal holidays serve multiple purposes:

Commemoration: They honor important people, events, or aspects of American heritage.
Unity: They provide a shared experience for citizens across the country.
Rest: They offer federal employees a day off from work, contributing to work-life balance.
Economic Impact: They often lead to increased travel and retail activity.

2. What Are The Current Federal Holidays In The United States?

There are currently eleven federal holidays in the United States, as outlined in 5 U.S.C. 6103. These holidays are observed by federal employees and often by state and local governments, as well as private businesses.

Here’s a list of the current federal holidays:

Date	Holiday
January 1	New Year’s Day
Third Monday in January	Birthday of Martin Luther King, Jr.
Third Monday in February	Washington’s Birthday (Presidents’ Day)
Last Monday in May	Memorial Day
June 19	Juneteenth National Independence Day
July 4	Independence Day
First Monday in September	Labor Day
Second Monday in October	Columbus Day
November 11	Veterans Day
Fourth Thursday in November	Thanksgiving Day
December 25	Christmas Day

3. How Are Federal Holidays Determined?

Federal holidays are determined by the United States Congress. According to the Congressional Research Service, Congress has the authority to designate specific days as federal holidays through legislative action. This process typically involves the introduction of a bill, committee review, and votes in both the House of Representatives and the Senate.

3.1. Legislative Process

The process for establishing a new federal holiday generally follows these steps:

Bill Introduction: A member of Congress introduces a bill proposing a new federal holiday.
Committee Review: The bill is referred to a relevant committee, which reviews the proposal, holds hearings, and may amend the bill.
House Vote: If the committee approves the bill, it is sent to the House of Representatives for a vote.
Senate Vote: If the House passes the bill, it is sent to the Senate for consideration and a vote.
Presidential Approval: If both the House and Senate pass the bill in the same form, it is sent to the President for signature. If the President signs the bill, it becomes law and the new holiday is established.

3.2. Factors Influencing the Decision

Several factors influence the decision to create a new federal holiday:

Historical Significance: The event or person being commemorated should have significant historical importance to the United States.
National Importance: The holiday should be of national importance and have broad support across the country.
Economic Impact: Congress considers the potential economic impact of adding a new holiday, including the cost of government closures and the potential benefits from increased tourism and retail sales.
Public Support: Strong public support for the holiday can influence Congressional decisions.

3.3. Examples of Holiday Creation

Martin Luther King, Jr. Day: Legislation to create Martin Luther King, Jr. Day was introduced shortly after his assassination in 1968, but it took many years to gain enough support to pass. The holiday was finally signed into law in 1983 and first observed in 1986.
Juneteenth National Independence Day: Juneteenth was officially recognized as a federal holiday on June 17, 2021, commemorating the end of slavery in the United States. The bill passed unanimously in the Senate and overwhelmingly in the House, reflecting broad bipartisan support.

4. What Happens When A Federal Holiday Falls On A Weekend?

When a federal holiday falls on a weekend, the observance of the holiday is shifted to provide federal employees with a day off. According to the U.S. Office of Personnel Management (OPM), if a holiday falls on a Saturday, it is typically observed on the preceding Friday. If a holiday falls on a Sunday, it is usually observed on the following Monday.

4.1. Saturday Observance

If a federal holiday falls on a Saturday, most federal employees observe the holiday on the preceding Friday. This means that federal offices are closed on Friday, and employees receive a paid day off. This practice is outlined in 5 U.S.C. 6103(b).

Example: If Independence Day (July 4th) falls on a Saturday, the observed holiday for federal employees is on Friday, July 3rd.

4.2. Sunday Observance

If a federal holiday falls on a Sunday, most federal employees observe the holiday on the following Monday. This means that federal offices are closed on Monday, and employees receive a paid day off. This practice is detailed in Section 3(a) of Executive Order 11582, February 11, 1971.

Example: If Christmas Day (December 25th) falls on a Sunday, the observed holiday for federal employees is on Monday, December 26th.

4.3. Impact on Businesses and Services

The observance of federal holidays on weekdays can affect various aspects of daily life:

Government Services: Federal government offices, including post offices and federal courts, are closed, which can delay services.
Banking: Many banks follow the federal holiday schedule and may be closed or offer limited services.
Private Sector: Many private businesses also close or offer reduced hours, although this is not mandated by law.
Schools: Schools often observe federal holidays, providing students and teachers with a day off.

4.4. State and Local Observances

While federal holidays apply to federal employees and institutions, state and local governments often align their holiday schedules with the federal calendar. However, states have the discretion to establish their own holidays, which may differ from the federal list.

5. How Do Federal Holidays Affect Government Employees?

Federal holidays have a direct and significant impact on government employees. These holidays provide federal workers with paid time off, impacting their work schedules, pay, and overall work-life balance. The U.S. Office of Personnel Management (OPM) outlines the specific regulations and guidelines for federal holiday observances.

5.1. Paid Time Off

One of the primary effects of federal holidays on government employees is the provision of paid time off. According to 5 U.S.C. 6103, federal employees are entitled to a paid day off for each federal holiday. This ensures that employees do not have to use their personal leave or vacation time to observe these holidays.

Eligibility: Most federal employees are eligible for paid time off on federal holidays. However, there may be some exceptions for employees in certain positions or those working on specific schedules.
Pay Entitlement: Federal employees receive their regular rate of pay for federal holidays. This means they are paid as if they had worked a normal workday.

5.2. Impact on Work Schedules

Federal holidays can significantly impact the work schedules of government employees:

Office Closures: Federal government offices are typically closed on federal holidays, which means that many employees do not report to work.
Essential Services: Some federal agencies provide essential services that must continue operating even on holidays. Employees in these roles may be required to work on holidays but are typically compensated with additional pay or compensatory time off.
Holiday “In Lieu Of”: As mentioned earlier, if a federal holiday falls on a Saturday or Sunday, the holiday is observed on the preceding Friday or following Monday, respectively. This adjustment ensures that federal employees receive a day off during the workweek.

5.3. Compensation for Working on a Holiday

Employees who are required to work on a federal holiday are typically entitled to additional compensation. According to OPM guidelines, these employees may receive:

Holiday Premium Pay: Employees may be eligible for holiday premium pay, which is an additional payment for working on a holiday.
Compensatory Time Off: Instead of premium pay, employees may opt to receive compensatory time off, which can be used at a later date.

5.4. Work-Life Balance

Federal holidays contribute to the work-life balance of government employees by providing opportunities for rest, relaxation, and spending time with family and friends. These holidays allow employees to recharge and return to work with renewed energy and focus.

5.5. Examples of Federal Holiday Impact

Thanksgiving Day: Federal employees typically have Thanksgiving Day off, allowing them to spend the day with family, often traveling to be with loved ones.
Christmas Day: Similar to Thanksgiving, Christmas Day provides federal employees with a day off to celebrate the holiday with family and friends.
Memorial Day: This holiday provides a long weekend for federal employees, allowing them to travel, engage in leisure activities, or participate in commemorative events.

6. What Is The Difference Between Federal Holidays And State Holidays?

Federal holidays and state holidays are both days designated for special recognition or celebration, but they differ in their scope, applicability, and legal basis. Federal holidays are established by the U.S. Congress and apply to federal government employees and institutions, while state holidays are determined by individual state governments and apply to state employees and institutions.

6.1. Legal Basis and Authority

Federal Holidays: Federal holidays are established by the U.S. Congress and are codified in Title 5 of the United States Code, Section 6103. The authority to designate federal holidays rests with the federal government.
State Holidays: State holidays are established by individual state legislatures or executive orders issued by the governor. Each state has the authority to determine its own holidays, and these holidays are typically codified in state laws.

6.2. Scope and Applicability

Federal Holidays: Federal holidays apply to all federal government employees and institutions. This includes federal offices, courts, postal services, and other federal entities. Private businesses and state and local governments are not legally required to observe federal holidays, although many choose to do so.
State Holidays: State holidays apply to state government employees and institutions within that particular state. This includes state offices, courts, schools, and other state entities. Federal employees and private businesses are not required to observe state holidays.

6.3. List of Holidays

Federal Holidays: As previously mentioned, there are currently eleven federal holidays in the United States: New Year’s Day, Martin Luther King, Jr. Day, Washington’s Birthday (Presidents’ Day), Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.
State Holidays: The list of state holidays varies from state to state. Some states observe all federal holidays, while others have additional holidays that are unique to that state. Examples of state holidays include:
- Confederate Memorial Day: Observed in some Southern states to honor those who died fighting for the Confederacy during the Civil War.
- Evacuation Day: Observed in Boston, Massachusetts, to commemorate the British evacuation of the city during the American Revolutionary War.
- Kamehameha Day: Observed in Hawaii to celebrate King Kamehameha I, who united the Hawaiian Islands.

6.4. Observance and Closures

Federal Holidays: On federal holidays, federal government offices are closed, and federal employees receive a paid day off. Essential services, such as law enforcement and national security, continue to operate.
State Holidays: On state holidays, state government offices are closed, and state employees receive a paid day off. Similar to federal holidays, essential state services continue to operate.

6.5. Impact on Private Businesses

Federal Holidays: Private businesses are not legally required to close on federal holidays, but many choose to do so. Banks, financial markets, and other businesses often follow the federal holiday schedule.
State Holidays: Private businesses are also not legally required to close on state holidays, but some may choose to do so, particularly if the holiday is widely observed in the state.

6.6. Examples of Differences

Columbus Day: While Columbus Day is a federal holiday, some states and cities have replaced it with Indigenous Peoples’ Day to honor Native Americans and their contributions to society.
Presidents’ Day: The federal holiday is officially designated as “Washington’s Birthday,” but many states refer to it as “Presidents’ Day” and use it to celebrate all U.S. presidents.

7. Are Banks And Post Offices Closed On Federal Holidays?

Yes, banks and post offices are generally closed on federal holidays. Federal holidays affect the operations of various institutions, including banks and postal services, due to the closure of federal government offices and the granting of paid time off to federal employees.

7.1. Banks

Most banks in the United States follow the federal holiday schedule and are closed on federal holidays. This is because the Federal Reserve System, which regulates banks, observes these holidays. When the Federal Reserve is closed, it can disrupt banking operations and transactions.

Closures: Banks typically close all branches on federal holidays.
Limited Services: Online banking services and ATMs may still be available, but in-person transactions and customer service are usually not offered.
Transaction Processing: Transactions initiated on a federal holiday may not be processed until the next business day.
Federal Reserve: According to the Federal Reserve System, closures on federal holidays are necessary to maintain the stability and efficiency of the banking system.

7.2. Post Offices

The United States Postal Service (USPS) also closes its offices and suspends regular mail delivery on federal holidays. This is because postal workers are federal employees and are entitled to a day off on these holidays.

Closures: Post offices are closed on federal holidays.
Mail Delivery: Regular mail delivery is suspended on federal holidays.
Priority Mail: Priority Mail Express may still be delivered in some areas, but this service may be limited.
Online Services: Online postal services, such as purchasing postage and tracking packages, remain available on federal holidays.
USPS Statement: The USPS states that closures on federal holidays are necessary to provide employees with a day off and to align with the closures of other federal government offices.

7.3. Specific Holiday Impacts

New Year’s Day: Banks and post offices are closed.
Martin Luther King, Jr. Day: Banks and post offices are closed.
Presidents’ Day: Banks and post offices are closed.
Memorial Day: Banks and post offices are closed.
Juneteenth National Independence Day: Banks and post offices are closed.
Independence Day: Banks and post offices are closed.
Labor Day: Banks and post offices are closed.
Columbus Day: Banks and post offices are closed.
Veterans Day: Banks and post offices are closed.
Thanksgiving Day: Banks and post offices are closed.
Christmas Day: Banks and post offices are closed.

7.4. Alternative Services

Despite the closures, some services may still be available:

ATMs: Automated Teller Machines (ATMs) are typically available for cash withdrawals and other basic banking transactions.
Online Banking: Online banking platforms allow customers to check balances, transfer funds, and pay bills.
Self-Service Kiosks: Some post offices have self-service kiosks that allow customers to purchase postage and ship packages.

8. Do Private Businesses Have To Close On Federal Holidays?

Private businesses are not legally required to close on federal holidays in the United States. The decision to close or remain open on these days is at the discretion of the business owner or management. While federal holidays apply to federal government employees and institutions, they do not mandate closures for private sector companies.

8.1. Legal Requirements

There is no federal law that requires private businesses to close on federal holidays. The Fair Labor Standards Act (FLSA) sets minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. However, it does not require private businesses to close or provide paid time off for holidays.

8.2. Business Decisions

The decision to close or remain open on federal holidays is based on various factors:

Industry: Some industries, such as retail and hospitality, may choose to remain open on holidays to capitalize on increased consumer spending.
Customer Demand: Businesses may assess customer demand and traffic patterns to determine whether it is profitable to stay open.
Employee Preferences: Some businesses consider the preferences of their employees, who may want to have the day off to spend with family and friends.
Company Policy: Many companies have established policies regarding holiday closures, which may be based on tradition or business considerations.
Competition: Businesses may monitor the actions of their competitors to determine whether to close or stay open.

8.3. Common Practices

While there is no legal requirement, many private businesses do choose to close or operate with reduced hours on certain federal holidays:

Closures: Many businesses close on major holidays such as New Year’s Day, Thanksgiving Day, and Christmas Day.
Reduced Hours: Some businesses operate with reduced hours on holidays such as Memorial Day, Labor Day, and Independence Day.
Open: Retail stores, restaurants, and entertainment venues often remain open on many federal holidays to accommodate customers.

8.4. Impact on Employees

The decision to close or remain open on federal holidays can have a significant impact on employees:

Paid Time Off: Some companies offer paid time off for federal holidays, while others do not. The provision of paid time off is typically determined by company policy and may depend on factors such as the employee’s position and tenure.
Holiday Pay: Employees who work on federal holidays may be eligible for holiday pay, which is typically a higher rate of pay than their regular wage. However, not all companies offer holiday pay.
Scheduling: Employees may be required to work on federal holidays, particularly in industries that remain open. Employers should provide adequate notice and consider employee preferences when creating holiday work schedules.

8.5. Examples of Business Behavior

Retail: Many retail stores remain open on holidays such as Presidents’ Day, Columbus Day, and Veterans Day to attract shoppers.
Restaurants: Restaurants often remain open on holidays such as Easter, Mother’s Day, and Father’s Day to accommodate families celebrating these occasions.
Entertainment: Movie theaters, amusement parks, and other entertainment venues typically remain open on holidays to provide entertainment options for the public.

9. How Does The Stock Market Observe Federal Holidays?

The stock market, including the New York Stock Exchange (NYSE) and the Nasdaq, typically observes federal holidays by closing its trading floors. The specific days on which the stock market is closed are determined by a pre-set schedule that is announced at the beginning of each year. The Securities Industry and Financial Markets Association (SIFMA) also provides recommendations for bond market closures.

9.1. Stock Market Closures

The stock market generally closes on the following federal holidays:

New Year’s Day
Martin Luther King, Jr. Day
Washington’s Birthday (Presidents’ Day)
Memorial Day
Juneteenth National Independence Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day

9.2. Modified Trading Schedules

On some holidays, the stock market may have a modified trading schedule, with an early close. For example, the market may close at 1:00 p.m. on the day after Thanksgiving (Black Friday).

9.3. NYSE and Nasdaq Policies

The NYSE and Nasdaq have their own policies regarding holiday closures, but they generally align with the federal holiday schedule. The exchanges publish a list of holiday closures at the beginning of each year, which is available on their websites.

9.4. Reasons for Closures

The stock market closes on federal holidays for several reasons:

Employee Time Off: To allow employees of brokerage firms and other financial institutions to have time off to observe the holidays.
Reduced Trading Volume: Trading volume is typically lower on holidays, as many investors are away from their desks.
Operational Efficiency: Closing the market on holidays allows for efficient processing of trades and settlement of transactions.

9.5. Impact on Investors

The closure of the stock market on federal holidays can have an impact on investors:

Trading Limitations: Investors cannot buy or sell stocks on days when the market is closed.
Delayed Transactions: Orders placed on a holiday will not be executed until the next trading day.
Market Volatility: News and events that occur on a holiday can impact the market when it reopens, potentially leading to increased volatility.

9.6. SIFMA Recommendations

The Securities Industry and Financial Markets Association (SIFMA) provides recommendations for bond market closures. While these recommendations are not binding, they are widely followed by financial institutions.

9.7. Historical Data

Historically, the stock market has closed on federal holidays to align with broader societal practices and to provide employees with time off. The specific dates and policies have evolved over time, but the general practice of closing on major holidays has remained consistent.

10. Are There Proposals For New Federal Holidays?

Yes, there have been numerous proposals for new federal holidays in the United States. These proposals often aim to recognize significant historical events, cultural contributions, or important figures. While many proposals have been introduced in Congress, few have gained enough support to become law.

10.1. Common Proposals

Some of the most common proposals for new federal holidays include:

Election Day: A proposal to make Election Day a federal holiday to encourage greater voter participation.
Cesar Chavez Day: A proposal to honor Cesar Chavez, the labor leader and civil rights activist.
Women’s Equality Day: A proposal to recognize the achievements of women and the ongoing fight for gender equality.

10.2. Election Day Holiday

The idea of making Election Day a federal holiday has gained traction in recent years as a way to increase voter turnout. Proponents argue that a day off would make it easier for people to get to the polls and exercise their right to vote.

Arguments for: Supporters argue that a holiday would reduce long lines at polling places and make voting more accessible for working-class Americans.
Arguments against: Opponents argue that a holiday would be economically costly and that there are other ways to increase voter participation, such as expanded early voting and vote-by-mail options.

10.3. Cesar Chavez Day

Cesar Chavez Day is currently a state holiday in California, Colorado, and Texas. Proposals to make it a federal holiday aim to honor Chavez’s contributions to the labor movement and his advocacy for farmworkers’ rights.

Arguments for: Supporters argue that Chavez’s legacy deserves national recognition and that a holiday would raise awareness of the ongoing struggles of farmworkers.
Arguments against: Opponents argue that adding another federal holiday would be economically burdensome and that Chavez’s legacy is not universally celebrated.

10.4. Women’s Equality Day

Women’s Equality Day is currently observed on August 26 to commemorate the passage of the 19th Amendment, which granted women the right to vote. Proposals to make it a federal holiday aim to recognize the achievements of women and the ongoing fight for gender equality.

Arguments for: Supporters argue that a holiday would celebrate the progress women have made and highlight the need for continued efforts to achieve full gender equality.
Arguments against: Opponents argue that adding another federal holiday would be unnecessary and that there are other ways to promote women’s rights and equality.

10.5. Challenges to Creation

Creating a new federal holiday is a challenging process that requires broad political support. Some of the main challenges include:

Political Opposition: Gaining support from both parties in Congress can be difficult, particularly if the proposed holiday is controversial or divisive.
Economic Concerns: The potential economic impact of adding a new holiday, including the cost of government closures and the potential benefits from increased tourism and retail sales, is often a concern.
Competing Priorities: Congress has many competing priorities, and it can be difficult to gain attention and support for a new holiday proposal.

10.6. Historical Context

Historically, the creation of new federal holidays has been relatively rare. The last federal holiday to be established was Juneteenth National Independence Day in 2021, which demonstrates that it is possible to create new holidays when there is strong public and political support.

Are you still curious about federal holidays? Don’t hesitate to ask your question on WHAT.EDU.VN and get free answers.

Understanding federal holidays involves knowing their purpose, the specific days observed, and their impact on government employees, businesses, and financial institutions. While federal holidays provide a uniform day of celebration and remembrance, their creation and observance involve various legal, economic, and social considerations. Whether it’s observing a day off or understanding how these holidays affect different sectors, being informed helps in navigating the calendar and its implications.

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