In the United States, private-sector employers are not required by federal law to provide paid time off for holidays, including Memorial Day. The Fair Labor Standards Act (FLSA) mandates payment for hours worked but does not compel compensation for unworked time. Consequently, an employee's entitlement to holiday pay is not a guaranteed legal right but rather a benefit determined by the specific policies of their employer or the terms of an employment agreement.
The provision of holiday pay is typically outlined in a company's employee handbook, an individual employment contract, or a collective bargaining agreement. For non-exempt (hourly) employees, employers may choose to offer paid time off, premium pay (such as time-and-a-half) for working on the holiday, or no additional benefit. For exempt (salaried) employees, if the business is closed for the holiday, they must generally receive their full week's salary. If required to work, they receive their regular salary, with any extra compensation being at the employer's discretion. Federal employees, in contrast, are entitled to paid time off for all federal holidays.
To ascertain eligibility for compensation on this federal holiday, an individual should directly consult their organization's official policy documents or speak with their human resources department. Reviewing the original offer letter or employment contract can also provide clarity on benefits. While some state or local laws may impose specific requirements, particularly for public employees or government contractors, the general rule for the private sector is that holiday pay is a discretionary benefit offered by the employer, not a legal mandate.
