The difference between federal and national holidays in the United States is that there is no such thing as a national holiday in any legal sense. The 11 days most people call national holidays are federal holidays, and federal holidays guarantee a paid day off only to federal government employees. Private businesses, state agencies, banks, schools, and stock exchanges all set their own rules, which is why one office closes while the one next door stays open.
The 11 Federal Holidays
Federal law recognizes exactly 11 public holidays under 5 U.S.C. § 6103:1Office of the Law Revision Counsel. 5 USC 6103 – Holidays
- New Year’s Day (January 1)
- Birthday of Martin Luther King, Jr. (third Monday in January)
- Washington’s Birthday (third Monday in February)
- Memorial Day (last Monday in May)
- Juneteenth National Independence Day (June 19)
- Independence Day (July 4)
- Labor Day (first Monday in September)
- Columbus Day (second Monday in October)
- Veterans Day (November 11)
- Thanksgiving Day (fourth Thursday in November)
- Christmas Day (December 25)
Inauguration Day (January 20 every four years) works like a twelfth holiday, but only for federal employees and District of Columbia government workers in the Washington metropolitan area.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays The most recent fell on January 20, 2025; the next will be January 20, 2029.
When a fixed-date holiday lands on a Saturday, federal employees on a standard schedule observe it the preceding Friday. When it lands on a Sunday, they observe it the following Monday.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays
What “Federal Holiday” Actually Means
The phrase “national holiday” gets used constantly in the U.S., but it carries no legal weight. The federal government has no authority to order private businesses or state governments to close on any particular day. A federal holiday closes federal agencies. That is the extent of it.
A bank may close because the Federal Reserve is closed. A school may close because the state declared its own holiday on the same date. Neither closure comes from the federal designation itself. Most people never notice this until they drive to a government office that is unexpectedly open, or unexpectedly locked.
Congress creates federal holidays by passing legislation and sending it to the President. Juneteenth was the most recent addition, signed on June 17, 2021.2Congress.gov. S.475 – Juneteenth National Independence Day Act Before that, no new federal holiday had been added since Martin Luther King, Jr. Day in 1983.
What This Means If You Work in the Private Sector
No federal law requires private employers to give you a paid day off on any holiday, or to pay you extra for working one. The Fair Labor Standards Act does not mandate payment for time not worked, and it treats holiday benefits as a matter of agreement between employer and employee.3U.S. Department of Labor. Holiday Pay If your employer wants you at your desk on Thanksgiving at your regular hourly rate, federal law allows it.
Time-and-a-half or double-time for holiday shifts is a company benefit or a union-negotiated term, not a legal entitlement. A handful of states do require premium pay or restrict certain retail operations on specific holidays, so the picture can shift depending on where you work. Outside those state rules and collective bargaining agreements, your holiday benefits come entirely from your employer’s policy.
What It Means at the State Level
Each state sets its own holiday calendar through its legislature. Most mirror the federal list for convenience, but none are required to. Some states recognize days with no federal equivalent, such as Patriots’ Day or statehood anniversaries. On those days, state courts and motor vehicle offices may close while federal agencies stay open.
The reverse happens too. A state may choose not to observe Columbus Day, keeping state offices open while the post office is closed. If you need to visit a government office around a holiday, check both the federal calendar and your state’s calendar before making the trip.
Banks and Stock Markets Follow Their Own Rules
The Federal Reserve observes all 11 federal holidays.4Federal Reserve Board. Holidays Observed – K.8 When the Fed is closed, banks cannot process wire transfers or interbank settlements, which is why most retail banks close on the same days. When a federal holiday falls on a Saturday, the Fed’s regional banks still open the preceding Friday, though the Board of Governors in Washington does not.
Stock exchanges use a different calendar. The New York Stock Exchange closes for only nine days in 2026, skipping Columbus Day and Veterans Day, and it also closes for Good Friday, which is not a federal holiday.5NYSE. Holidays and Trading Hours The day after Thanksgiving and Christmas Eve bring shortened sessions rather than closures. If you are planning trades or transfers around a holiday weekend, check the specific exchange or bank schedule rather than assuming the federal calendar applies.
Religious Holidays Not on the Federal List
The federal holiday list leans heavily secular. Employees who observe Rosh Hashanah, Eid al-Fitr, Diwali, Orthodox Christmas, or other religious days usually need to arrange time off separately, and Title VII of the Civil Rights Act offers some protection when they do.
Title VII defines “religion” to include all aspects of religious observance and practice, and it requires employers to reasonably accommodate those observances unless doing so would create substantial hardship for the business.6Office of the Law Revision Counsel. 42 USC 2000e – Definitions You don’t need particular phrasing or a written request. You just need to tell your employer you need time off for a religious reason, and the employer is then expected to work with you on a solution such as a schedule swap, a shift change, or use of personal leave.7U.S. Equal Employment Opportunity Commission. Fact Sheet: Religious Accommodations in the Workplace
Coworker complaints about covering your shift do not count as hardship. Genuine safety concerns or significant costs relative to the size of the business might. If one arrangement doesn’t work, both sides are expected to keep talking until they find one that does.