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GUIDES

Holiday scheduling for small businesses

Updated 2026-11-12 · By the Assistlify team · AI-assisted, every fact linked to its source below

For holiday scheduling, federal law sets no holiday pay and no holiday premium: the FLSA does not require payment for time not worked, such as holidays, and requires time and a half only for hours over 40 in a workweek, per the US Department of Labor. That leaves who works, who gets the day off and what extra you pay to your own written policy, with a few state exceptions.

The DOL says holiday benefits are a matter of agreement between employer and employee (DOL holiday pay), and the FLSA has no requirement for double time (DOL elaws FLSA Advisor).

What the law says about holiday work

QuestionFederal (FLSA)CaliforniaMassachusetts
Must I pay for a holiday not worked?NoNoNot addressed on the state page used here
Must I pay a premium for working a holiday?No; overtime only over 40 hours in the workweekNo; overtime only over 8 hours a day or 40 a weekRetail premium pay ended January 1, 2023; overtime over 40 hours still applies, including holiday hours
Must I close on holidays?No federal ruleNoRetail opening on Thanksgiving and Christmas, and early opening on Columbus Day and Veterans Day, needs state approval and a local police permit
Can I require Sunday work?No federal ruleNot addressed on the state page used hereMost retailers cannot require Sunday work or punish a refusal

Sources: DOL FLSA overview and DOL weekend work; California DLSE holidays FAQ; Mass.gov blue laws guide. Other states have their own rules; check your state labor department.

Example: a holiday in an overtime week

Example: an employee paid $16.00 an hour works 8 hours on a holiday and 44 hours in that workweek. Federal law requires overtime for the 4 hours over 40: 4 × $16.00 × 1.5 = $96.00 for those hours. No separate holiday premium is required. In California, the DLSE says a paid holiday that is not worked does not count toward overtime, because overtime is based on hours worked, not hours paid.

Holiday request and rotation template

HolidayOpen? HoursStaff needed per storeRequests off (received by deadline)Volunteers to workAssignedWorked this holiday last year
ThanksgivingClosed0————
Day after Thanksgiving8 a.m.–9 p.m.Store 1: 5, Store 2: 4Ben, CaraAna, Dev, LeeBen, Priya
Christmas Eve9 a.m.–3 p.m.Store 1: 3, Store 2: 2AnaPriyaAna, Lee

Example: Christmas Eve needs 5 people across both stores. Priya volunteered, which fills 1 slot. Ana asked off and worked it last year. Ben, Cara and Dev did not work it last year, so they fill slots 2 to 4. The fifth slot goes to Lee, the one person left, and Lee gets first claim on the day off next year. Dev is 15; a 9 a.m. to 3 p.m. shift on a non-school day is 6 hours, inside the federal 8-hour limit for 14- and 15-year-olds (DOL Fact Sheet #43).

A holiday policy in 6 lines

  1. Requests for holiday time off open on a fixed date and close on a fixed deadline.
  2. Volunteers to work are scheduled first.
  3. Remaining shifts go first to people who did not work that holiday last year (the last column above).
  4. Ties are broken by a rule written in advance, such as hire date.
  5. State any holiday premium you choose to pay in writing, since federal law does not set one.
  6. Post the holiday schedule on the same lead time as any other week (see how far in advance to post a schedule).

Fair-workweek cities add notice and change-pay rules to holiday weeks as to any other; see predictive scheduling laws explained.

In Assistlify, staff send time-off requests from their phone, and approving a request flags any shift it overlaps, which is where holiday conflicts show up first. It runs one schedule across multiple locations.

This is general information, not legal advice. Check your state labor department for current rules.

This is general information, not legal advice. Check your state labor department for current rules.

Questions

Do employers have to pay holiday pay?

No federal law requires it: the DOL says the FLSA does not require payment for time not worked, such as vacations or holidays.

Is holiday work paid at time and a half?

Not by federal law. The FLSA requires time and a half only for hours over 40 in a workweek, including hours that fall on a holiday.

Do I have to pay double time on holidays?

No. The DOL says the FLSA has no requirement for double time pay; it is a matter of agreement between employer and employee.

Do Massachusetts retailers still pay holiday premium pay?

No. Mass.gov says retail premium pay requirements for Sundays and certain holidays were eliminated effective January 1, 2023, but overtime over 40 hours a week still applies.

Sources