July 4, 2026 is a Saturday, so the federal government will observe Independence Day on Friday, July 3, 2026. That is the day federal offices close, most banks and stock exchanges shut down, and the Postal Service suspends delivery. The actual holiday date on the calendar remains Saturday, July 4, but for pay and closure purposes the Friday is the legal public holiday for federal workers on a standard Monday-through-Friday schedule.1U.S. Office of Personnel Management. Federal Holidays
Why the Holiday Shifts to Friday
Federal law lists eleven public holidays, and Independence Day on July 4 is the only one in July. The same statute handles weekend dates directly: when a holiday lands on a Saturday, the preceding Friday becomes the legal public holiday for employees whose basic workweek is Monday through Friday.2Office of the Law Revision Counsel. 5 USC 6103 – Holidays That is the rule that puts the 2026 observance on July 3.
The shift exists so workers on a standard schedule don’t lose a paid day off when the date happens to land on a weekend. The Office of Personnel Management publishes guidance to help agencies apply the substitution consistently, including for employees on compressed or alternative schedules who follow slightly different rules.3U.S. Office of Personnel Management. Fact Sheet: Federal Holidays – In Lieu Of Determination
Pay for Federal Employees
Full-time federal employees get their regular base pay for July 3, 2026 without reporting for duty. No leave request is required, and the day doesn’t come out of an annual or sick leave balance.
Part-time federal employees are entitled to holiday pay only if they have a regularly scheduled tour of duty on the day the holiday actually falls.3U.S. Office of Personnel Management. Fact Sheet: Federal Holidays – In Lieu Of Determination A part-time worker not scheduled for that day doesn’t receive holiday pay. Intermittent employees, who have no fixed schedule, cannot be paid for holidays they don’t work. When an office closes on the “in lieu of” day, agencies have discretion to grant administrative leave to part-time employees whose regular schedule doesn’t include the actual holiday date.
If you have to work on the holiday, federal law gives you your regular base pay plus holiday premium pay at a rate equal to your base pay. That effectively doubles your rate for up to eight hours of non-overtime holiday work.4Office of the Law Revision Counsel. 5 USC 5546 – Pay for Sunday and Holiday Work Hours beyond eight, or hours that qualify as overtime, fall under separate overtime rules rather than the holiday premium. OPM confirms the premium applies to each hour of holiday work during the employee’s tour of duty.5U.S. Office of Personnel Management. Fact Sheet: Premium Pay (Title 5) The double-rate guarantee is statutory, so agencies cannot substitute compensatory time off in place of holiday premium pay for those hours.
Pay for Private-Sector Workers
No federal law requires private employers to give you a paid day off on Independence Day, and no federal law requires premium pay for working it. The Fair Labor Standards Act does not require payment for time not worked, including federal holidays. Holiday pay in the private sector is a matter of agreement between employer and employee.6U.S. Department of Labor. Holiday Pay
Many salaried positions include paid holidays as a benefit, and Independence Day is among the most commonly offered. Hourly and part-time workers often receive nothing extra unless their employer’s policy or a union contract provides it. If your employer schedules you for July 3 or July 4, 2026, you’re owed overtime only if your hours cross 40 for the workweek under the usual FLSA rules. The date being a federal holiday does not change that math.
One narrow exception: employees covered by the McNamara-O’Hara Service Contract Act or the Davis-Bacon Act may be entitled to holiday benefits if the wage determination for their contract specifies them.6U.S. Department of Labor. Holiday Pay
What Closes on Friday, July 3, 2026
The U.S. Postal Service treats Independence Day as one of its eleven observed holidays and suspends regular mail delivery and retail counter service.7U.S. Postal Service. Employee and Labor Relations Manual – 518 Holiday Leave Priority Mail Express, which carries a delivery guarantee, is typically the one product that keeps moving. Everything else waits for the next delivery day.
Federal courthouses close on the holiday. Electronic filing through CM/ECF stays available around the clock, so attorneys can still submit documents. Filing deadlines that fall on the holiday are generally extended to the next business day under the Federal Rules of Civil and Appellate Procedure, though practitioners should check local rules because some circuits have their own timing provisions.
The Federal Reserve does not process transactions on federal holidays, and that ripples through the banking system.8Federal Reserve Board. Holidays Observed – K.8 ACH transfers, wire transfers, and check clearings initiated on or just before Friday, July 3 will settle the next banking day. If you’re expecting a direct deposit or sending a payment near the holiday, build in an extra business day.
The New York Stock Exchange and Nasdaq will both close on Friday, July 3, 2026.9NYSE. Holidays and Trading Hours The bond market follows a similar pattern, with a recommended early close at 2:00 p.m. Eastern on Thursday, July 2, and a full closure on Friday, July 3. Most retail bank branches close as well. ATMs, mobile banking apps, and transfers between accounts at the same bank generally keep working, but any transfer that touches the Federal Reserve’s payment network won’t clear until Monday, July 6.