HR-8980-119
Referred to the House Committee on Education and Workforce.
Sponsored by Sarah McBride (D-DE)
What it does
This bill would amend the Fair Labor Standards Act (FLSA) to require employers to pay at least 1.5 times an employee's regular rate of pay for any work performed on a federal legal public holiday. The 11 federal holidays covered are those listed in 5 U.S.C. § 6103(a), including New Year's Day, Independence Day, Thanksgiving, and Christmas. The bill also clarifies that holiday premium pay would not count toward the calculation of overtime pay, and it preserves any higher holiday pay rates set by state or local law.
Who benefits
Hourly and non-exempt workers in retail, food service, hospitality, healthcare, transportation, logistics, and other industries that commonly operate on federal holidays — estimated in the tens of millions. Lower-wage workers who currently receive no holiday premium would see the largest proportional gain. Workers in states without existing holiday pay laws would gain a new federal floor. Labor unions that have negotiated holiday pay provisions would see those standards codified in law for non-union workers. Workers in states with stronger holiday pay laws are unaffected but protected by the bill's savings clause.
Who is hurt
Employers in industries that operate on holidays — particularly small businesses in retail, restaurants, and hospitality — would face higher labor costs on up to 11 days per year. Businesses with thin profit margins may reduce holiday staffing, potentially reducing available hours or jobs for workers who want to work those days. Consumers could see higher prices if businesses pass on increased labor costs. Employers in states that already have no holiday pay requirements would face the largest compliance cost increase. Salaried exempt employees would not benefit, potentially widening the gap between exempt and non-exempt workers.
Supporters argue
Supporters argue that the United States is one of the few developed nations with no federal requirement for holiday pay, leaving tens of millions of workers — disproportionately low-wage and hourly — without compensation for working on days when most salaried employees are off. They contend that the 1.5x rate mirrors the existing FLSA overtime standard, making it a familiar and administratively simple benchmark for employers, and that the bill's savings clause ensures it functions as a floor, not a ceiling, preserving stronger state and local protections already in place.
Opponents argue
Opponents argue that mandatory holiday pay increases labor costs on specific calendar days, which may lead employers to reduce holiday staffing, cut hours on surrounding days, or raise prices — outcomes that could harm the very workers the bill intends to help. They contend that holiday compensation is already a competitive tool employers use to attract workers in tight labor markets, and that a federal mandate removes flexibility for businesses and workers to negotiate arrangements that suit their circumstances, particularly in industries like healthcare where holiday staffing is critical and scheduling is complex.
Constitutional context
Congress has broad authority to regulate wages and working conditions under the Commerce Clause (Art. I, §8, cl. 3), and the FLSA itself was upheld under this authority. This bill amends an existing, well-established statute rather than creating a new regulatory regime, so it does not raise significant Commerce Clause or major questions doctrine concerns under West Virginia v. EPA (2022) or Loper Bright v. Raimondo (2024).
Checks and balances
Congress gains direct statutory authority over holiday pay; the Department of Labor enforces the new requirement through existing FLSA mechanisms, with no significant new agency discretion created; federal courts adjudicate disputes under the existing FLSA enforcement framework.
Historical precedent
The original Fair Labor Standards Act of 1938 established the federal minimum wage and overtime pay requirements; this bill follows the same structural model by adding a new wage floor for a specific category of work hours.