As a small business owner, are you wondering what holidays are available to employees as paid time off? While small businesses are not required by law to provide paid time off as part of a paid time off (PTO) policy, offering paid time off can be a great way to attract and retain top talent, boost employee morale, and show appreciation for your team's hard work.
Let's ** the most common paid federal holidays small businesses can offer and why they're valuable to your employees.
A federal holiday is defined as the 11 dates designated as a statutory holiday in the United States**. This means that non-essential federal offices are closed on these days, and federal employees take these days as paid holidays. While holidays can only be set up for institutions, many others are usually closed on these national holidays – think schools, banks, and financial markets.
Before we dive into the specific holidays that small businesses can offer, let's first figure out why it's important to offer paid holidays.
There is no law that compels small businesses in the private sector to provide federal holidays to their employees, whether paid or unpaid. However, there are some good reasons why you should consider offering these paid holidays.
In today's competitive job market, offering paid vacation time is a great way to attract and retain great employees. Many job seekers consider a PTO policy to be an important factor when evaluating job opportunities. By offering paid time off, your small business may be more attractive to candidates, increasing your chances of hiring and retaining the best talent.
Paid holidays can also have a positive impact on employee morale. When employees feel appreciated and valued, they are more likely to be motivated and engaged in their work. Offering paid time off shows your team that you care about their well-being and work-life balance, which can lead to increased job satisfaction and productivity.
Increased productivity and engagement are great, but it's also important to show appreciation to employees for that. By giving them time to spend time with their loved ones and recharge, you recognize the contributions they make to your business and foster a positive company culture. Offering paid time off is one way to show your team how much you appreciate their hard work and dedication. When you do, everyone wins.
Now that we've established the importance of providing paid vacation time as part of a PTO policy, let's take a look at the most common holidays that small businesses can offer.
New Year's Day is a federal holiday on January 1 each year. Traditionally, it is a time of new beginnings, usually celebrated with family and friends. Many small businesses choose this day as a paid holiday, giving employees time to rest, recharge, and refocus after a busy holiday season.
Martin Luther King Jr. Day is another federal holiday that falls on the third Monday in January. The day commemorates the life and legacy of civil rights leader Martin Luther King Jr. Making this day a paid holiday is a way to show respect and support for diversity and inclusion.
You guessed it, ** Day is another federal holiday that is celebrated on the third Monday in February. This day is a day in honor of all past and present Americas**. Many businesses choose this as a paid holiday to give their team a long weekend to relax and spend time with family and friends.
Memorial Day is a federal holiday on the last Monday in May to honor those who have died while serving with the U.S. Army. Small businesses can offer this paid vacation to show their support for the armed forces and any employees in that community.
Juneteenth is an important day to commemorate the emancipation of enslaved African Americans in the United States. Juneteenth is the most recently designated federal holiday after it received a statutory anniversary in 2021. The holiday is celebrated every year on June 19 and is increasingly considered a paid holiday by small businesses and other organizations. Employers who offer Juneteenth as a paid holiday can show their support for racial equity by giving employees a chance to commemorate and reflect on the importance of this historic event.
Independence Day, also known as July 4, is another federal holiday that is celebrated on July 4 every year. This day celebrates the adoption of the Declaration of Independence and the birth of the United States. Many businesses use this day as a paid holiday so that employees have a chance to celebrate with their loved ones.
Labor Day is yet another federal holiday to add to the list. The festival is held on the first Monday in September to recognize the contributions and achievements of American workers. When businesses choose this day as a paid holiday, they can express their appreciation for the hard work and dedication of their employees.
Columbus Day is a federal holiday on the second Monday in October to commemorate Christopher Columbus' arrival in the Americas. Because of the holiday's ties to the history of imperialism and colonialism, some businesses may choose to offer this paid holiday under the flag of Indigenous Peoples' Day and celebrate it on the same day (although it is not a federal holiday).
Veterans Day is another federal holiday that is celebrated annually on November 11. This day is in honor of all veterans who have served. Businesses that offer paid time off can show support for veterans and give employees the opportunity to spend time with their families.
Thanksgiving Day is the fourth Thursday in November and is one of the more festive federal holidays. When small businesses offer this paid holiday, they give employees a chance to celebrate and recharge at the start of a busy holiday season. Since Thanksgiving always falls on a Thursday, consider providing your employees with a break on the Friday after a federal holiday as well. This can be a great added perk for your team if your business model allows it.
Christmas Day is the last federal holiday of the year, scheduled on December 25 every year. This day commemorates the religious and secular celebrations of the season. Many employers offer this paid holiday to give employees time to celebrate and spend time with friends and family.
As far as we know, employers can offer a large number of federal holidays as paid holidays (and some non-federal holidays). While these holidays we've outlined are the most common, small business owners may choose to offer several other holidays as paid time off. Some of these include:
Easter. Good Friday.
Hanukkah. Kwanzaa.
Diwali. Chinese New Year.
Eid al-Fitr. Eid al-Adha.
When deciding which holidays to offer as paid time off, it's critical to consider your team's demographics and their cultural and religious background. Offering a variety of holidays can greatly help your employees feel included and valued. Employers may also consider offering floating holidays as part of their PTO policy so that employees can be more flexible in choosing which holidays they want to celebrate during their time off.
While small businesses aren't legally required to offer paid holidays, it's a common practice, and it can really help your small business in hiring great employees. When deciding which paid holidays to incorporate into your PTO policy, consider the holidays mentioned here, as well as other cultural and religious holidays.