FMLA and Paid Holidays: Federal Labor Law Requirements

FMLA and Paid Holidays: How Holiday Pay, Leave Counting, and Scheduling Really Work

If you’re trying to answer questions like “does FMLA affect holiday pay?” or “what happens when an employee is using FMLA the day after a holiday?”, you’re not alone. Holidays can complicate Family and Medical Leave Act (FMLA) tracking—especially when leave is intermittent, when a business closes for a holiday week, or when the holiday falls inside a continuous leave period.

This SwiftSDS guide explains how FMLA and paid holidays interact under federal rules, with clear steps HR teams can use to stay compliant and consistent.

The Core Rule: FMLA Is Unpaid, But Holidays Are Handled by Policy (and the DOL’s Counting Rules)

The FMLA (29 U.S.C. § 2601 et seq.) provides eligible employees of covered employers up to 12 workweeks of job-protected leave in a 12-month period for qualifying reasons. Importantly, FMLA leave is generally unpaid—but employers may require or employees may elect to substitute accrued paid leave in certain situations (29 C.F.R. § 825.207).

Holiday pay, however, is not required by the FMLA. Whether a holiday is paid depends on the employer’s established policy or an applicable contract. What the FMLA does regulate is how holidays affect the amount of FMLA leave used.

For broader compliance context on federal workplace requirements, see SwiftSDS’ overview of Federal (United States) Posting Requirements and employee protections summarized in 5 rights of workers.

When a Paid Holiday Counts Against FMLA Leave (and When It Doesn’t)

Continuous FMLA leave: holidays generally count if they fall in the workweek

If an employee is on a full week of FMLA leave (or more) and a paid holiday occurs during that week, the entire week counts as FMLA. In practice, the holiday is treated like any other day in the week for counting purposes because the employee is on a continuous leave schedule.

Actionable tip: If you track FMLA in weeks (common for continuous leave), do not try to “subtract” a holiday from a week already designated as FMLA. The week remains a week of leave.

Intermittent or reduced-schedule FMLA: the holiday does not count unless the employee was scheduled/required to work it

If an employee is using intermittent FMLA and the holiday falls on a day they were not scheduled to work (or the business is closed), the holiday typically is not counted against the employee’s FMLA entitlement.

Actionable tip: For intermittent leave, count only the time the employee would otherwise have been required to work.

Company closures (e.g., holiday week shutdown): don’t count closed periods as FMLA

When the business is closed for a full week (for example, a year-end shutdown), that time is generally not counted as FMLA because the employee would not have been working anyway.

Actionable tip: Document shutdown periods on your leave calendar and ensure your FMLA tracking system doesn’t automatically debit entitlement during closures.

Does FMLA Affect Holiday Pay?

The general answer: FMLA doesn’t require holiday pay, but your policy must be applied consistently

FMLA itself does not mandate paid holidays. Whether an employee receives holiday pay while on leave depends on:

Your written holiday pay policy
Any collective bargaining agreement (CBA)
Whether the employee is substituting paid leave (vacation/PTO) during FMLA
Whether similarly situated employees on non-FMLA leave are treated the same

Under FMLA regulations, you generally can’t treat employees on FMLA leave worse than employees on equivalent non-FMLA leave. So if your policy provides holiday pay to employees on paid vacation, you should examine whether denying holiday pay to someone on FMLA (who is substituting PTO) would create inconsistency.

Actionable tip: Review your handbook language to confirm how holiday pay works for:

Unpaid leaves of absence
Paid PTO/vacation weeks
Other protected leaves (state or local programs)

Using FMLA the Day After a Holiday: Common Scenarios (and Compliance Steps)

“Using FMLA day after holiday” scenarios often raise attendance and discipline concerns. HR’s risk is assuming the leave is “suspicious” and taking action without following the FMLA certification/notice process.

Scenario 1: Employee calls out with an FMLA-qualifying reason the day after a holiday

If the employee has an approved certification on file for intermittent leave (or provides notice that triggers the FMLA process), you may designate the absence as FMLA, subject to your usual call-in rules, as long as those rules are not more burdensome for FMLA users.

Actionable steps:

Apply your normal call-in policy uniformly.
Confirm whether the condition is already certified for intermittent FMLA.
If not certified (or recertification is appropriate), follow the eligibility/rights notice and certification steps under 29 C.F.R. Part 825.
Track only the hours the employee was scheduled to work.

For related intermittent leave mechanics, SwiftSDS covers schedule flexibility in Can you work part time on fmla.

Scenario 2: Employee was off for the holiday, then requests FMLA for the next scheduled workday

The holiday itself typically does not count against FMLA unless it falls inside a continuous leave week. The day after the holiday can still be FMLA if it’s for a qualifying reason.

Actionable steps:

Do not automatically “bundle” the holiday into the leave debit.
If intermittent, debit only the next scheduled workday absence.
Document designation clearly in your leave log.

Substituting Paid Leave: How PTO, Vacation, or Sick Time Interacts With Holidays

Under 29 C.F.R. § 825.207, an employer may require (or an employee may elect) substitution of accrued paid leave during otherwise-unpaid FMLA—subject to the employer’s usual rules for the paid leave type.

That affects holidays in two practical ways:

If the employee uses PTO/vacation for FMLA time, your holiday policy for employees using PTO/vacation may apply.
If the employee is on unpaid FMLA, your policy might treat holiday pay differently—again, consistency with comparable non-FMLA leave is key.

Because paid leave rules can vary significantly by state (especially for sick leave and salary basis issues), it’s smart to cross-check state guidance. SwiftSDS provides a helpful example of state-level complexity in Exempt employees and sick time.

Documentation and Posting: Practical Compliance Checklist

Maintain required FMLA records and a consistent designation process

FMLA recordkeeping and notices are regulated by the U.S. Department of Labor (29 C.F.R. §§ 825.300–825.500). For holidays and FMLA, consistency is the compliance theme: consistent call-in enforcement, consistent holiday pay policy application, and consistent leave tracking.

Keep federal wage-hour postings up to date

While not an “FMLA poster” link in this hub, wage and hour notice compliance is a frequent audit trigger and part of a complete HR compliance program. SwiftSDS recommends maintaining current postings like Employee Rights Under the Fair Labor Standards Act (and the Spanish version, if applicable).

Don’t forget state posting requirements when leave and pay intersect

State laws may expand protected leave rights or impose additional pay-related rules. If you operate in specific states, review your jurisdiction requirements, such as:

FAQ: FMLA and Paid Holidays

1) Does FMLA affect holiday pay?

FMLA does not require employers to provide holiday pay. Holiday pay depends on your policy/CBA. However, you should apply the policy consistently with how you treat comparable non-FMLA leave to avoid interference or discrimination concerns under FMLA regulations.

2) If an employee is on intermittent FMLA, does a holiday reduce their FMLA balance?

Typically no—if the holiday is a day the employee was not scheduled to work or the workplace is closed, you generally do not count it against intermittent FMLA entitlement. You count only the time the employee would have worked.

3) If someone is using FMLA the day after a holiday, can we treat it as an attendance violation?

If the absence is FMLA-qualifying and properly noticed/certified (or in the process of being certified), it generally can’t be counted under no-fault attendance policies. You can enforce uniformly applied call-in procedures, but avoid heightened requirements for FMLA users.

Next step for HR teams: Audit your holiday pay policy language alongside your FMLA tracking method (weekly vs. hourly) and confirm your payroll/HRIS rules match the FMLA counting approach in 29 C.F.R. Part 825—especially for intermittent leave around holidays.

Fmla and paid holidays