Holiday Pay

Written by the NextCrew team

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 much is holiday pay, and how is it calculated?

Holiday pay is usually time and a half for hours worked on a holiday, or the regular rate for a paid holiday not worked. Double time is less common. The exact rate is whatever the employer's policy or the client contract says. Here is how each type is calculated.

Illustrative numbers. Which holidays qualify, and at what premium, is set by policy or contract.

Which holidays are paid holidays?

No law sets a list for private employers, so each employer chooses its paid holidays. Most start from the 11 federal holidays:

• New Year's Day
• Birthday of Martin Luther King, Jr.
• Washington's Birthday (Presidents' Day)
• Memorial Day
• Juneteenth National Independence Day
• Independence Day
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving Day
• Christmas Day

Many private employers recognize only some of these, and some add days such as the day after Thanksgiving or Christmas Eve. Easter is not a federal holiday, so it is a paid holiday only if the employer's policy or the client contract lists it.

For a staffing agency, the holiday list is agreed with each client, because the client decides which days carry a holiday bill rate.

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.

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.