Public Holidays in the USA in 2025: A Guide for Employers

Public holidays in the United States play an important role in work schedules, leave policies, and overall employee well-being. As a small business owner or HR manager, understanding federal and state public holidays—and how they intersect with Paid Time Off (PTO) - can help you stay compliant with labor laws and manage your team effectively. Here's everything you need to know about public holidays in the USA in 2025, including legal implications and state-by-state variations.

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Federal Public Holidays in 2025

The United States observes 11 federal public holidays, established by Congress and recognized nationwide. These holidays are non-working days for federal employees, and many private employers also observe them.

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In 2025, the federal public holidays are:

1. New Year’s Day – Wednesday, January 1
2. Martin Luther King Jr. Day – Monday, January 20
3. Washington’s Birthday (Presidents’ Day) – Monday, February 17
4. Memorial Day – Monday, May 26
5. Juneteenth National Independence Day – Thursday, June 19
6. Independence Day – Friday, July 4
7. Labor Day – Monday, September 1
8. Columbus Day (Indigenous Peoples’ Day in some states) – Monday, October 13
9. Veterans Day – Tuesday, November 11
10. Thanksgiving Day – Thursday, November 27
11. Christmas Day – Thursday, December 25

State-Specific Public Holidays

While federal holidays apply nationwide, individual states can designate their own public holidays. These vary widely, with some states observing regional or cultural celebrations, such as:

• Cesar Chavez Day (March 31): Observed in California, Texas, and Arizona.
• Patriots’ Day (April 21): Observed in Massachusetts and Maine.
• Pioneer Day (July 24): Celebrated in Utah.
• Election Day (November 5): A public holiday in some states like Illinois, where employees may be given time off to vote.

For a comprehensive list, check your state labor office's website or consult an attorney specializing in employment law.

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Are Public Holidays Included in PTO?

Public Holidays and PTO Policies

In the United States, employers are not legally required to offer paid time off for public holidays. Whether public holidays are included in PTO depends on the employer’s policy. Here are the common scenarios:

1. Paid Public Holidays
   Many employers choose to offer public holidays as paid leave to boost employee morale. This is separate from PTO allocations.
2. Public Holidays Deducted from PTO
   Some employers count public holidays as part of an employee’s annual PTO allowance, reducing the available days for personal leave.
3. Unpaid Public Holidays
   Other companies may observe public holidays without offering pay, especially for part-time or hourly employees.

Employers should clearly outline their policies in the employee handbook to ensure transparency.

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Are Employers Legally Required to Observe Public Holidays?

Private employers in the United States are not legally obligated to give employees paid time off for public holidays. However, there are a few exceptions and best practices to consider:

1. Federal Contractors
   Businesses that contract with the federal government may be required to observe federal holidays.
2. Religious and Cultural Observances
   Employers must reasonably accommodate employees who wish to observe religious or cultural holidays unless it creates undue hardship for the business.
3. State-Specific Mandates
   Certain states may have specific requirements for public holidays. For example, some states mandate time off for Election Day.

Overtime and Holiday Pay

If employees work on a public holiday, there is no federal requirement for extra pay (e.g., time and a half). However, some states and employers voluntarily provide holiday pay as a benefit.

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Clear Communication

To avoid confusion, ensure your team knows whether your company observes public holidays as paid days off, unpaid leave, or part of PTO. Make your policy clear in employment contracts and onboarding documents.

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Key Considerations for Employers

• Plan Ahead: Include public holidays in your staffing and project schedules to prevent disruptions.
• Be Flexible: Allow employees to swap public holidays with other leave days to accommodate personal or cultural preferences.
• Automate Leave Management: Use absence management software to track PTO, vacations or any other leave types.

Conclusion

Public holidays in the USA for 2025 present a mix of federal observances and state-specific variations. While employers are not legally required to provide paid leave for these days, many choose to include them as a benefit to attract and retain talent. By understanding the implications of public holidays and aligning them with your PTO policy, you can ensure compliance and maintain employee satisfaction.

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Further Reading

1. U.S. Department of Labor - Holiday Pay
2. Holidays
3. Paid Time Off (PTO) in the USA: A Crucial Benefit or Costly Perk?

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