Senate · S 3867 · 119th Congress

Holiday Pay Act

Summary

This bill requires employers to pay workers at least 1.5 times their normal pay for working on federal holidays. It adds holiday pay rules to the Fair Labor Standards Act. Workers covered by that law would gain this new protection, and employers who break the rule could face lawsuits.

In Favor

Right now, no federal law requires extra pay for working on holidays like Christmas or Thanksgiving. This bill gives workers a fair reward for giving up time with family on those special days. Employers who skip holiday pay would face the same legal penalties as those who skip overtime pay.

Against

Higher pay on holidays raises costs for businesses, especially small ones with thin profits. Employers may respond by cutting staff hours or staying closed on holidays, which could hurt workers and shoppers. Some businesses already offer holiday pay by choice, so a one-size rule removes flexibility to match what each workplace can afford.

Additional Considerations

Purpose & Problem

Is the problem real and worth federal action?

The bill would require employers to pay workers at least one and a half times their regular pay for any hours worked on a federal public holiday. It changes the Fair Labor Standards Act to add this new pay rule.

Scope & Related Provisions

Does it stay focused, or carry unrelated add-ons?

The provisions stay on topic. The bill defines the covered holidays, sets the pay rate, adds enforcement rules, and allows higher state or local holiday pay laws to remain in place.

Who Is Affected

Who benefits, and who bears the cost?

Workers in commerce or goods production would gain a new right to higher pay on federal holidays. Employers in those sectors would take on a new duty to pay the higher rate on those days.

Cost & Funding

Is it affordable and responsibly funded?

The bill does not authorize or appropriate federal funds. It shifts a cost onto private employers, who must pay covered workers at least one and a half times their normal rate on each federal public holiday worked.

Risks & Implementation

What could go wrong in practice?

Employers must track which days are federal public holidays and calculate the correct pay rate for each covered worker. Agencies must enforce a new category of wage claims alongside existing minimum wage and overtime claims.

For the actual bill text, see congress.gov.

AI-generated · Published 7/23/2026