Texas Holiday Pay and Legal Holiday Laws

Holiday rules in Texas can be confusing because the state gives private employers so much flexibility. Workers might assume that holidays automatically come with extra pay or guaranteed time off, but it’s often more complicated.

Texas has its own laws regarding legal holidays, and those rules affect public and private employers differently. Understanding how state and federal leave laws work can help Texans navigate their rights and identify potential violations.

This guide looks at how Texas law treats holiday pay, which holidays the state recognizes, and how federal and state rules interact. We examine the impact of these rules in the public and private sectors. We also answer common questions Texas workers have about federal holidays and the state holiday schedule.

If you’re facing a situation where you suspect you’ve been denied holiday time or pay unlawfully, consider touching base with a Texas employment lawyer. This area is rife with issues stemming from unclear company policies, conflicts over medical leave, and misclassification of employees. Find out what you need to know about your options so you can make informed decisions about how to proceed.

Holiday Pay Under Texas State Laws

Texas does not require private employers to offer holiday pay. No state statute forces an organization to give workers a paid day off on Christmas, Thanksgiving, New Year’s Day, or any other holiday. Texas also doesn’t require extra pay for working on a holiday. If a private employer chooses to offer a paid holiday, it is because the company has decided to do so, not because the law demands it.

This means that holiday benefits for private-sector workers are determined by the employer’s policies, employee handbooks, or the terms of an employment contract. If a company promises paid holidays, it must follow its own rules. The state does not force the company to offer them. This is true even for major national observances like Memorial Day, Labor Day, and Veterans Day.

Public employers operate differently. As we will see later, the law dictates their holiday schedules.

Exempt and Nonexempt Employees

Holiday rules can feel different depending on whether a worker is classified as an exempt or nonexempt employee under the federal Fair Labor Standards Act (FLSA). The FLSA applies to almost all public and private employers in the United States. It sets national standards for overtime, minimum wage, and pay practices. The FLSA also categorizes employees as either exempt or nonexempt. This classification affects eligibility for overtime and other pay protections.

It can also impact holiday-related outcomes. Below, we explore holiday rules for both groups in the private and public sectors in the state of Texas.

Nonexempt Employees

Nonexempt employees are usually paid hourly and must receive overtime when they work more than 40 hours in a workweek. Working on a holiday does not automatically create overtime. Overtime only applies if the total hours exceed 40.

Let’s say a nonexempt worker puts in 40 hours by Thursday and then works on Good Friday. That extra time may count toward overtime, but the holiday itself does not trigger special pay under state or federal law.

Private Sector

For private-sector nonexempt employees, this means holiday pay is entirely at the employer’s discretion. A private organization may choose to offer premium holiday pay, time-and-a-half pay, or a paid day off. Texas law doesn’t require it. If a private employer in Texas offers holiday benefits, they must follow their written policies or employment contracts.

Public Sector: State Level

For nonexempt state employees, the Texas Government Code sets an official holiday schedule. State agencies are usually closed on these dates, with nonexempt employees receiving paid time off (PTO). Public colleges and universities follow separate schedules but still provide the same number of holidays.

If a nonexempt state employee must work on a state holiday, they may earn compensatory time or overtime, depending on agency policy. Compensatory time is paid time off that public employees can earn instead of overtime for hours worked beyond their scheduled hours.

Public Sector: Federal Level

Federal agencies in Texas follow the federal holiday schedule and close on designated federal holidays. Nonexempt federal employees generally receive paid time off for these days. If they must work on a federal holiday, they receive premium holiday pay.

Exempt Employees

Exempt employees are typically paid on a salary basis. If an exempt employee works any part of a week, they receive their full salary. They aren’t entitled to overtime and tend to earn the same weekly pay regardless of whether there’s an observed holiday. Working on a holiday also doesn’t change an exempt employee’s pay under state or federal law.

Private Sector

For exempt employees in the private sector, holiday pay is determined solely by company policy. A private employer may choose to offer paid holidays, premium holiday pay, or additional time off. Texas law doesn’t require any of these benefits. If a private employer does offer holiday benefits, however, it must follow its own written policies and terms of any employment contracts.

Public Sector: State Level

Exempt employees who work for the state of Texas follow the official holiday schedule set by the Texas Government Code. When a state holiday occurs, agencies typically close, and exempt employees receive paid time off as part of their regular salary. Public colleges and universities follow separate schedules but still provide the same number of holidays. If an exempt state employee must work on a state holiday, they may receive compensatory time, depending on agency policy.

Public Sector: Federal Level

Exempt federal employees follow the federal holiday schedule established by Congress. Federal agencies close on designated federal holidays, and exempt federal employees receive their regular salary for those days.

If an exempt federal employee must work on a federal holiday, they may be entitled to compensatory time or other benefits under federal personnel rules. These are separate from Texas law and are often more generous than private-sector policies.

Texas State Holiday Schedule

Texas recognizes several state holidays, many of which overlap with federal holidays. These holidays are listed in the Texas Government Code. The State Auditor’s Office issues an official holiday schedule for state agencies each fiscal year.

Paid State Holidays

State agencies close on the following state holidays. If one of them falls on a weekend, Texas doesn’t move it to another weekday.

Exempt and nonexempt state employees receive paid time off for these days:

• New Year’s Day: January 1
• Martin Luther King Jr. Day: Third Monday in January
• Presidents’ Day: Third Monday in February
• Memorial Day: Last Monday in May
• Independence Day: July 4
• Labor Day: First Monday in September
• Veterans Day: November 11
• Thanksgiving Day: Fourth Thursday in November
• Day After Thanksgiving: Friday after Thanksgiving
• Christmas Eve: December 24
• Christmas Day: December 25
• Day After Christmas: December 26

Confederate Heroes Day (January 19) is another state holiday, but it’s treated as a skeleton crew holiday unless it falls on the same day as Martin Luther King Jr. Day.

Skeleton Crew Holidays

Texas recognizes holidays that reflect the state’s unique history. On these days, state agencies remain open, but with minimal staffing. These holidays include:

• Texas Independence Day: March 2
• San Jacinto Day: April 21
• Emancipation Day (Juneteenth): June 19
• Lyndon Baines Johnson Day: August 27

Exempt state employees who work on these days may earn compensatory time. Nonexempt state employees may earn overtime or compensatory time for working these days.

Optional Holidays

Texas also acknowledges cultural and religious holidays. State employees may take the following days off in lieu of a skeleton crew holiday:

• Rosh Hashanah: Date varies
• Yom Kippur: Date varies
• Cesar Chavez Day: March 31
• Good Friday: Friday before Easter

While these aren’t automatic days off for state workers, they may be used as optional holiday selections.

Federal Holiday Schedule

Federal holidays are established by Congress and apply to federal agencies nationwide, including those in Texas. These holidays are listed in federal law and provide paid time off for federal employees. Private employers in Texas may choose to observe federal holidays, but they are not required to do so.

Paid Federal Holidays

Federal agencies close on the following federal holidays. When a holiday falls on a weekend, it is usually observed on the nearest weekday.

Exempt and nonexempt federal employees receive paid time off for these days:

• New Year’s Day
• Martin Luther King Jr. Day
• Washington’s Birthday (Presidents’ Day)
• Memorial Day
• Juneteenth National Independence Day
• Independence Day
• Labor Day
• Columbus Day / Indigenous Peoples’ Day (Second Monday in October)
• Veterans Day
• Thanksgiving Day
• Christmas Day

These 11 holidays are recognized every year for all federal employees.

Working on a Federal Holiday

Federal employees who work on a federal holiday may receive premium holiday pay, depending on their classification and agency policy:

• Exempt federal employees: May earn compensatory time
• Nonexempt federal employees: May receive premium holiday pay or compensatory time

These rules apply only to federal agencies and differ from the policies of Texas state agencies.

Other Observances

The federal government also recognizes many cultural and religious observances, such as Good Friday and Rosh Hashanah. These aren’t federal holidays and don’t provide automatic paid time off. Agencies may allow employees to use annual leave or other approved leave for these observances.

Should I Get Holiday Pay?

Texas labor laws don’t require private employers to offer paid holiday leave, sick leave, or vacation. These benefits are voluntary, but many private employers offer them to stay competitive.

When a private employer does offer PTO, it must follow its own written policies or any applicable employment contract. This applies equally to exempt and nonexempt private sector employees.

For public sector employees (state and federal), paid holidays are determined by the official holiday schedules. Both exempt and nonexempt public employees receive PTO for the holidays recognized by their agency.

In addition, the federal Family and Medical Leave Act (FMLA) provides unpaid job-protected leave for eligible exempt and nonexempt employees of covered employers. This includes private employers with 50+ employees and all public employers.

Religious Holidays in the Workplace

Neither public nor private employers in Texas are required to provide automatic PTO for religious holidays such as Yom Kippur, Diwali, or Good Friday. Federal antidiscrimination laws require employers to provide reasonable accommodations for religious practices unless doing so would create an undue hardship. This applies to exempt and nonexempt employees in both the private and public sectors.

Reasonable accommodations may include:

• Allowing the employee to use vacation or PTO
• Allowing unpaid leave
• Adjusting schedules or shifts
• Allowing flexible arrival or departure times

Employers aren’t required to provide paid religious holidays unless their written policies or employment contracts provide for it.

Holiday Payday Rules

Even during holiday weeks, Texas payday rules still apply. Both public and private employers must pay employees on their regular payday schedule.

If a payday falls on a holiday, a Texas employer may pay on the next business day. This rule applies to exempt and nonexempt employees in both sectors.

When To Seek Legal Advice

Many holiday-related issues are straightforward, but the rules in Texas can be confusing with the high degree of flexibility granted to private employers. Some situations may require help from an attorney.

Perhaps an employer promised holiday benefits and later refused to provide them, or maybe you suspect you were denied holiday time because of misclassification of your employment status or discrimination. Conflicts involving FMLA and other types of leave may also require guidance. Workers’ rights can sometimes get trampled when company policies are unclear or inconsistently applied.

A solid Texas employment lawyer can help you understand your rights, violations against them, and the remedies that may be available to you. If you’re not sure how to identify someone you can trust who also has the right qualifications, know that you’re not alone. To help, FindLaw made some of its lawyer registries publicly available, including its directory of Texas employment law attorneys.

Use this resource as a starting point. You can check out ratings and background information for local experts, including which ones offer free consultations. Look for someone with experience in cases similar to yours and schedule a meeting. While your rights as a Texas worker may not be particularly clear, they are important. Find out your options.