In the United States, various holidays are observed. Others are recognized at the federal level, while others are recognized at the state level. Some are political or religious. Due to the large number of holidays observed by American workers, it can be difficult for businesses to choose which ones they should recognize with paid time off. In addition, when evaluating whether it should be paid days off, your company should evaluate a range of factors, such as which holidays your employees genuinely want off and how giving them might affect your bottom line. Thus, in this article, let’s take a deep look at paid holidays together.
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What Exactly Are Paid Holidays?

Paid holidays allow employees to take a day off without losing income. According to the Bureau of Labor Statistics, private employees in the United States receive an average of eight of them per year, with 81% of private industry workers having access to it by 2021. The amount of them and the percentage of employees who have access vary by sector.
The following are the most popular paid holidays:

Other Paid Holidays in the United States

Some organizations extend their paid holiday calendar with additional holidays. The holidays included may vary based on geographical variations and employee input over time. The company’s holidays will vary depending on the employees’ demands and the business’s requirements. These other holidays often include New Year’s Eve, Christmas Eve, Columbus Day, Veterans’ Day, Juneteenth, Martin Luther King Jr.’s Birthday, Good Friday, and President’s Day.
Nevertheless, a floating holiday is another popular paid holiday option in which the employee selects which day to take off as part of their plan. These floating holidays are provided to employees as a means for them to honor various religious festivals, cultural events, and memorials. It can also allow employees to prolong their paid holiday weekends.
Private Sector Paid Holidays vs. Federal Paid Holidays

Private Sector Paid Holidays
There is no legislation mandating employers to provide paid holidays, and many do so voluntarily. Private organizations that provide paid vacations may ask certain workers to work on holidays. This is especially true for sectors that serve clients around the clock, seven days per week.
For example, manufacturing occupations may require holiday labor when capacity and consumer demand need additional output. Some employees may be required to work on holidays for health care services that offer direct patient care, such as nursing, emergency department services, hospital food services, and cleaning services. Retail shops, restaurants, petrol stations, pharmacies, convenience stores, and supermarkets open on holidays will require personnel to staff the business on those days.
Federal Paid Holidays
The holiday schedule for government employees is established by federal law. This statute also specifies paid holidays, such as Washington’s Birthday, commonly known as President’s Day. Numerous entities in the public sector, including municipal and state governments, base their holiday schedules on the federal holiday timetable. The Federal paid holiday schedule in the United States is as follows:
- New Year’s Day
- Birthday of Martin Luther King, Jr.
- Washington’s Birthday
- Memorial Day
- Juneteenth National Independence Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
Effect of Paid Holidays on Your Paycheck

If a paid holiday comes on a payday, it may affect your payment. The payroll staff may be on vacation and unable to handle your paycheck. In addition, the Automated Clearing House (ACH) system that handles direct deposits does not work on federal bank holidays. Your company may make other arrangements to pay you before the holiday, but they are not obligated to.
Conclusion
In short, a company that provides paid holiday can increase physical health, productivity, employee engagement, etc. Whether or not a company offers it depends on its organizational culture and industry. Employees seek holidays to spend time with their family and friends. Therefore, granting them time off will demonstrate the company’s concern for them. This directly influences employee retention and loyalty, as well as their work satisfaction, devotion, and commitment to the company.
FAQ
The Automated Clearing House, or ACH, is a system that makes it easy and safe for banks and other organizations to send and receive money. It includes electronic payment processing such as money deposits, online payments, and other transactions between accounts.
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Source: The Balance