Yes, the Fourth of July is a federal holiday. It’s one of 11 legal public holidays set by federal statute, which means federal offices close, most federal employees get the day off with pay, and federal financial systems like the Federal Reserve’s wire services shut down. What it doesn’t mean: private employers are not required to close, give you the day off, or pay extra if you work.
What “Federal Holiday” Actually Covers
Independence Day, July 4, is listed as a legal public holiday under 5 U.S.C. § 6103.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays That statute governs pay and leave for federal employees and operations within the District of Columbia. It does not create a binding national holiday that forces state governments, local governments, or private businesses to observe the day.
Neither Congress nor the President has claimed authority to declare a holiday binding on all 50 states. Each state sets its own legal holidays.2EveryCRSReport.com. Federal Holidays – Evolution and Application Every state does recognize July 4, but by its own choice.
When July 4 Is Observed in 2026
In 2026, July 4 falls on a Saturday. For federal employees on a standard Monday-through-Friday schedule, the observed holiday shifts to Friday, July 3, 2026.3U.S. Office of Personnel Management. Federal Holidays That’s the day federal offices close and holiday pay rules apply. The New York Stock Exchange also closes on Friday, July 3.
The shift follows a standard rule: when a federal holiday lands on a Saturday, the preceding Friday becomes the observed day for pay and leave.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays Sunday holidays roll forward to the following Monday under Executive Order 11582.4National Archives. Executive Order 11582 The rule keeps employees from losing a holiday benefit because the date happened to fall on a day they already had off.
What Federal Employees Get
Most federal employees get a paid day off on Independence Day or its observed date. Full-time workers receive their basic rate of pay for the hours they would normally have worked.5U.S. Office of Personnel Management. Fact Sheet – Holidays Work Schedules and Pay Part-time employees get holiday pay for holiday hours that fall within their regularly scheduled tour of duty.
Federal workers required to work non-overtime hours on the holiday earn premium pay equal to 100% of their basic rate on top of regular pay, effectively doubling compensation for up to eight hours.6Office of the Law Revision Counsel. 5 USC 5546 – Pay for Sunday and Holiday Work Hours beyond eight, or those qualifying as overtime under separate rules, fall under overtime provisions.
Three groups of federal workers are excluded from both the paid day off and holiday premium pay: intermittent employees without a regular schedule; standby duty employees receiving annual premium pay under 5 U.S.C. § 5545(c)(1); and certain firefighters covered by the special pay provisions of 5 U.S.C. § 5545b.5U.S. Office of Personnel Management. Fact Sheet – Holidays Work Schedules and Pay
If you’re a federal employee with annual leave scheduled across the holiday, the holiday itself doesn’t come out of your leave balance. Federal offices are closed, so the day is treated as a non-workday and annual leave is not charged.7U.S. Office of Personnel Management. Annual Leave You get holiday pay, and the leave hours stay in your bank.
What Private-Sector Workers Get
No federal law requires private employers to give workers a paid day off on July 4, pay premium rates for working the holiday, or close for the day. The Fair Labor Standards Act specifically does not require payment for time not worked on holidays, and holiday pay is left to the employment agreement or company policy.8U.S. Department of Labor. Holiday Pay
No state mandates premium pay or paid time off specifically for July 4 in the private sector either. If your employer’s handbook promises holiday pay or time-and-a-half for working the Fourth, that promise is enforceable as part of your employment terms. If the handbook is silent, it’s a regular workday at regular pay.
What Closes on the Observed Holiday
Federal offices close on the observed holiday, which in 2026 is Friday, July 3. The U.S. Postal Service does not deliver mail or operate retail windows. Social Security Administration offices shut down, pausing in-person services. Federal courts close for regular business.
The Federal Reserve Banks also observe the holiday, and as of 2026 the Fedwire Funds Service and National Settlement Service still do not operate on weekday holidays.9Federal Reserve Financial Services. Wholesale Services Operating Hours and FedPayments Manager Hours of Availability Wire transfers between banks will not settle on the observed holiday. The Federal Reserve announced in late 2025 that it plans to expand Fedwire and NSS to weekday holidays, but the change is not expected before 2028.10Federal Reserve Board. Federal Reserve Board Announces Expanded Operating Days of Two Large-Value Payments Services
Most commercial banks close branches on the observed holiday. Stock exchanges, including the NYSE, close for the full day. If you need to make a wire transfer, deposit, or other time-sensitive financial move, build in at least one extra business day.