Colorado Legal Holidays and Holiday Pay Laws

State legal holiday laws often recognize federal holidays but, like Colorado, may also include additional observances. Understanding the difference between public and private sector holiday obligations is essential for both employees and employers.

This article explores Colorado’s legal holidays, holiday incentives for public employees, and how holidays may impact private employers.

What Are Colorado’s Legal Holidays?

The legal holidays in Colorado are:

• New Year’s Day: January 1

• Dr. Martin Luther King, Jr.’s Birthday: Third Monday in January

• President’s Day: Third Monday in February

• Memorial Day: Last Monday in May

• Juneteenth: June 19

• Independence Day: July 4

• Labor Day: First Monday in September

• Frances Xavier Cabrini Day: First Monday in October

• Veteran’s Day: November 11

• Thanksgiving Day: Fourth Thursday in November

• Christmas Day: December 25

If a legal holiday falls on a Sunday, it is observed on the next Monday. If it falls on a Saturday, it is observed on the Friday before.

The statute also recognizes “any day appointed or recommended by the governor of this state or the president of the United States as a day of fasting or prayer or thanksgiving.” For example, the governor may declare the day after Thanksgiving as an additional holiday, providing state workers with two consecutive days off.

Holiday Entitlements for Public Employees

Federal holidays apply to federal workers, and state holidays apply to state workers. Colorado recognizes 11 legal holidays by statute, some of which overlap with the federally recognized holidays. The subsequent statutes acknowledge additional holidays, some of which a state employee can choose to observe in place of one of the 11 legal holidays.

For example, Colorado also allows state employees to observe Farm Workers Day (formerly known as “César Chávez Day”) on March 31 in place of another legally observed holiday.

State employees get a paid day off, an alternate day off (compensatory time off or “comp” time), or premium holiday pay if they work a legal holiday.

Are Private Employers Required to Provide Holiday Pay?

No. Private employers owe employees nothing for holidays—no time off work, no holiday incentive pay, no obligation to close the business. Neither federal law nor Colorado state law requires private employers to close their businesses on holidays or to provide their employees with paid time off for holidays or premium pay for working on holidays.

In the private sector, holidays are not a legal entitlement—they are a negotiated benefit.

When Private Employers Choose to Offer Holidays

That said, most private employers do provide some holidays as an employment perk. Employer holidays are often listed in the employee handbook, employment contract, or established by custom.

A holiday policy typically designates the paid holidays, who qualifies for them (full-time employees, part-time employees, etc.), and whether employees receive extra pay for working on those days.

Once established, these policies are enforceable as wage agreements under the Colorado Wage Act. This law establishes strict legal guidelines for employee pay, deductions, final paychecks, and minimum wage requirements.

Colorado employment law extends significant protections to private-sector employees. These include paid sick leave, minimum wage, overtime pay, and more. Although a private employer may be required to provide holidays under a contract or collective bargaining agreement, holidays remain optional unless specifically agreed upon.

How Holidays Affect Private Employer Obligations

A private employer that chooses to offer holidays to its employees must be aware of how this may affect overtime and vacation pay obligations.

Holidays and Overtime Premiums

Under the Colorado Overtime and Minimum Pay Standards Order or “COMPS Order,” nonexempt employees are entitled to an overtime pay rate of time and a half. In the overtime calculation for nonexempt employees, holiday incentive pay must be included in the regular rate of pay.

Including holiday incentive pay in the regular rate can increase the overtime rate owed on all overtime hours that week. This was confirmed by a 2024 Colorado Supreme Court decision, Hamilton v. Amazon.com Services LLC. The case clarified the state’s more employee-protective stance than the federal Fair Labor Standards Act (FLSA).

Holiday hours worked count toward the hourly thresholds for overtime, over 12 hours in a workday, over 40 hours in a workweek, or over 12 consecutive hours of work. But holiday pay for a day off work does not count toward the overtime thresholds. For example, if an employee works 40 hours in a week but is compensated for 48 hours because of a paid holiday, the employee is not entitled to overtime. The state’s overtime thresholds count hours worked, not hours compensated.

Holidays and Vacation Pay Obligations

Some private employers offer “floating holidays.” This is typically a set number of days off work that employees can use at their discretion. Colorado law treats floating holidays the same as vacation and PTO.

This means that once earned, they are considered wages and cannot be forfeited. Additionally, all earned and unused floating holidays must be paid out in the employee’s final paycheck because they are considered earned wages.

Are You Owed Holiday Pay?

Even if you’re not a public-sector employee, your private employer may be required to follow the holiday policy they’ve established. You may have a legal claim if your employer made a promise to provide holidays and then failed to keep it.

If you think you might be entitled to wages your employer isn’t paying out, consider meeting with a Colorado employment law attorney to discuss your case. An attorney can evaluate your situation and provide the legal advice you need to be sure your employer fairly compensates you according to the state’s wage and hour laws.