Holiday Pay
What holiday pay is, whether federal law requires it, how holiday pay is calculated, whether temps get it, and how staffing agencies bill holiday hours.September 24, 2026
4 min read
Payroll
Written by the NextCrew team
Definition
Holiday pay is extra or regular pay tied to public holidays: pay for a holiday not worked, or a premium rate, often time and a half, for working on one. In the US no federal law requires either for private employers; it comes from employer policy, union contracts, client agreements and a few state or local rules.
For a staffing agency, holiday pay is two decisions, not one. What the agency pays the Crew Member, and what the client is billed. If the client agreed to a holiday premium in the bill rate, it is a pass-through. If not, the agency pays the premium out of its margin.
Is holiday pay required by law?
Not federally for private employers. The Fair Labor Standards Act does not require payment for time not worked, such as holidays, or a premium for working on one. Holiday pay is a policy or contract matter, and hours worked on a holiday count toward weekly overtime like any other hours. Some public-sector employers and a few states have their own rules, so check where your Crew Members work.
How is holiday pay calculated?
| Type | How it is calculated | Illustrative, $20 per hour |
|---|---|---|
| Holiday premium for hours worked | Regular rate × premium × hours worked | 8 hours × $30 = $240 at time and a half |
| Paid holiday not worked | Regular rate × scheduled hours | 8 hours × $20 = $160 |
| Double time holiday | Regular rate × 2 × hours worked | 8 hours × $40 = $320 |
Illustrative numbers. Which holidays qualify, and at what premium, is set by policy or contract.
Do temporary workers get holiday pay?
Only if the agency's policy or the client contract provides it. Many agencies pay a holiday premium for hours worked on recognized holidays and bill the client a matching holiday rate. Paid holidays not worked are less common for temporary staff, often limited to people who meet hours or tenure requirements.
Where agencies get holiday pay wrong
- Not agreeing the holiday list per client. Clients recognize different holidays; the contract should list them.
- Paying a premium the client does not pay. The margin disappears on every holiday hour.
- Missing overtime interaction. Holiday hours can push a week past 40.
- Inconsistent rules. Different sites applying different holiday rules to the same Crew Members.
Bottom line: holiday pay is set by policy and contract, not federal law. Agree the holiday list and premium with each client, and make sure what you pay and what you bill match.
How NextCrew handles holiday pay
- Holiday schedule. A company holiday schedule drives holiday pay and billing automatically, with a default 1.5× markup.
- Client overrides. Each client can have its own holiday schedule, so the right days and rates apply per account.
- Holiday pay code. Holiday is its own pay code with its own bill rate and overtime rules.
- Overtime by jurisdiction. Overtime is calculated automatically by jurisdiction and policy, including holiday hours.
See staffing payroll software.
Frequently asked questions
Related terms
- Double time pay: twice the regular rate, sometimes paid on holidays.
- Shift differential: extra pay for certain shifts.
- Bill rate: where a holiday premium has to be priced.
- Markup: why premium hours need their own bill rate.
General information, not legal advice. Holiday pay rules for public employers and some states differ.