Holiday Pay Act
- Bill Number
- S. 3867
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-12: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-06-22T19:24:16Z
AI-Generated Summary
Purpose
The Holiday Pay Act (S. 3867) aims to protect workers by requiring employers to provide premium pay for work performed on federal legal public holidays. It ensures that employees who must work on these holidays receive fair compensation, addressing a gap in current federal labor law where such premium pay is not mandated.
Key Provisions
- Definition of Legal Public Holiday: Adds a new term to the Fair Labor Standards Act (FLSA) defining "legal public holiday" as any holiday listed in federal law (5 U.S.C. § 6103(a)), such as New Year's Day, Martin Luther King Jr. Day, Independence Day, Labor Day, Thanksgiving, and Christmas Day.
- Mandatory Premium Pay: Introduces a new Section 8 in the FLSA, requiring employers to pay non-exempt employees (those covered by FLSA overtime rules) at least one-and-a-half times their regular hourly rate for any work performed on a legal public holiday during a workweek.
- Exclusion from Overtime Calculation: Holiday premium pay does not count toward the overtime compensation required under existing FLSA rules (Section 7), preventing double-counting of pay.
- Enforcement and Remedies:
- Makes it illegal for employers to violate the holiday pay rule, adding it to prohibited acts under FLSA Section 15.
- Employees can sue for unpaid holiday pay, similar to minimum wage or overtime claims, with remedies including back pay, damages, and attorney fees (FLSA Section 16).
- The U.S. Department of Labor gains authority to investigate and enforce violations (FLSA Section 17).
- Relation to State and Local Laws: The law does not override higher holiday pay rates or requirements set by states, cities, or other federal laws; it sets a federal floor.
- Exemptions and Conforming Changes: Applies the same exemptions as FLSA overtime rules (e.g., certain executives, professionals). Includes technical updates to align other FLSA sections and extends the statute of limitations for claims to include holiday pay violations.
Significant Changes to Existing Law
- New Federal Requirement: The FLSA previously required time-and-a-half pay only for hours worked over 40 in a workweek (overtime) but had no nationwide mandate for holiday premium pay. This bill creates a specific obligation for holidays, regardless of total weekly hours.
- Integration with FLSA Framework: Adds holiday pay as a third pillar alongside minimum wage and overtime, with full enforcement mechanisms, but ensures it doesn't interfere with overtime calculations.
- Repeal of Obsolete Section: Removes an outdated FLSA provision (Section 10) that is no longer relevant.
- No Impact on Higher Standards: Explicitly allows states or localities to enforce stricter rules, preserving variations like premium pay for additional holidays (e.g., some states recognize more days).
Potential Impacts
- On Employees: Non-exempt workers, especially in industries requiring holiday staffing (e.g., retail, healthcare, transportation), would gain guaranteed higher pay for holiday shifts, potentially improving financial security and work-life balance by discouraging unnecessary holiday work.
- On Employers: Businesses may face increased labor costs, particularly during peak holiday periods, leading to higher prices for consumers or adjustments in staffing. Small businesses could be disproportionately affected without exemptions.
- On Government Agencies: The Department of Labor would handle more enforcement cases, potentially increasing administrative workload and budget needs for investigations and compliance education.
- On Citizens and Economy: Could promote fairer labor practices nationwide, but might raise operational costs for holiday-dependent services, indirectly affecting consumers through higher prices. No direct impact on international relations.
Main Stakeholders Affected
- Employees: Primarily non-exempt hourly workers who may be scheduled on holidays, benefiting from extra pay.
- Employers: Businesses covered by the FLSA (most private sector employers engaged in interstate commerce), who must update payroll systems and policies.
- Unions and Labor Advocates: Likely to support the bill for strengthening worker protections.
- U.S. Department of Labor: Responsible for oversight, enforcement, and guidance on compliance.
- State and Local Governments: May need to align or exceed federal standards to maintain their protections.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens FLSA as a comprehensive wage protection law, with clear enforcement paths that could lead to more litigation if compliance issues arise. The bill's deference to higher state laws avoids federal preemption conflicts under the Supremacy Clause of the U.S. Constitution.
- Constitutional Implications: Aligns with Congress's authority under the Commerce Clause to regulate wages in interstate commerce; no apparent free speech, due process, or equal protection concerns, as it applies uniformly to covered workers.
- Political Implications: Represents a pro-labor policy shift, potentially appealing to workers' rights advocates but facing opposition from business groups concerned about costs. As an amendment to a longstanding law, it could set a precedent for future expansions of federal holiday protections without requiring broad overhauls.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-02-12: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-02-12: Introduced in Senate
Bill Versions
- Holiday Pay Act — issued 2026-02-12 — PDF (6 pages)