Is Juneteenth a Paid Holiday? Should Your Business Offer It?

I was recently asked whether a private company that had always given paid time off (PTO) for federal holidays is obligated to include Juneteenth as a paid holiday. The short answer is there may be an underlying expectation by employees, but there is no requirement.

Here is what employers need to know about giving employees this holiday - which I explain in this short video.

Is Juneteenth a Federal Holiday? Do Employers Have to Recognize It?

Juneteenth, which commemorates the end of slavery in the United States, is a federal holiday. It is deeply connected to the Emancipation Proclamation issued by President Abraham Lincoln in 1863.

Currently, there is no requirement under the Fair Labor Standards Act (FLSA) that requires private employers to offer paid time off for any federal holiday or official state holiday. Holiday pay and other paid time off (PTO) is a matter of agreement between the employer and the employee.

Having said that, there may be state or even local laws that require companies of certain sizes and/or industries to offer paid time off to employees for sick or other types of leave.

While every U.S. state and many local governments recognize Juneteenth in some capacity, that does not mean private employers must offer paid or unpaid leave. (Texas was the first state to make Juneteenth an official day and state holiday in 1980, and at least 30 states plus the District of Columbia now provide a paid holiday for state workers.)

Because paid holiday policies are not consolidated in one easy place to find for a quick reference, you will need to either do an online search or contact your certified HR rep for details about your company’s state and local leave requirements.

Why Juneteenth is a Federal Holiday

On June 19, 1865, in Galveston, Texas, Union troops and Union soldiers under Major General Gordon Granger announced freedom, more than two years after president Abraham Lincoln issued the emancipation proclamation during the Civil War. This marked the end of slavery, although slavery still continued in some states until the Thirteenth Amendment was ratified later in 1865.

The name Juneteenth blends June and nineteenth (also called freedom day or emancipation day) and is a holiday commemorating the end of slavery in the United States. Juneteenth is often described as America’s Second Independence Day, particularly for African Americans and their respective black communities. President Biden signed the Juneteenth National Independence Day Act on June 17, 2021, after the Senate unanimously passed it and the House approved it 415–14, making Juneteenth a legal public holiday.

What encouraged leaders to make Juneteenth a national holiday?

The push to make Juneteenth a federal holiday accelerated during the racial justice movement after George Floyd’s murder. The holiday designation invites reflection on the legacy of slavery and systemic racism in black America and the broader U.S.

Who Gets Juneteenth Off?

Juneteenth became a federal holiday on June 17, 2021, when president Joe Biden signed the Juneteenth National Independence Day Act into law, making Juneteenth official at the federal level. The federal holiday gives federal employees a paid day off and closes many federal institutions, including the U.S. Post Office and stock market. It is observed on June 19 each year, with the nearest weekday used when the holiday falls on a weekend. In total, there are 11 federal holidays for which federal employees receive paid time off. It is also the first new federal holiday since Martin Luther King Jr. Day was designated in 1983.

While every state now recognizes Juneteenth as an official holiday or observance, not all states have been able to set aside funding to pay state employees for taking the day off. Check your state laws to determine whether Juneteenth is a paid holiday for your state employees.

Many private employers have also adopted paid time off policies for Juneteenth, although they are not legally required to do so. Unlike Christmas Day or Thanksgiving Day, many companies do not completely close company operations for Juneteenth. To encourage Juneteenth celebrations, many try to operate with a skeleton crew and encourage employees to use a floating holiday to observe the day.

In some states, employees can take Juneteenth off as a personal holiday, allowing them to choose it as one of their designated personal holidays rather than it being one of the standard paid holidays.

Review your company’s handbook to determine whether Juneteenth is included as a paid national holiday.

How to Recognize Juneteenth as a New Federal Holiday

If you have reviewed your organizational needs and determined you are able to add Juneteenth to the list of paid holidays for your employees, consider doing the following:

1. Add the holiday to your list of qualifying holidays in your existing holiday policy.

If you do not currently have a holiday policy in place, create one with the following:

• Be specific about what is and is not allowed, that overtime calculations do not include non-worked holiday pay, and whether employees will be allowed to work despite it being a holiday (and if so, if pay will be at an increased holiday rate).
• Define whether the office will be closed for the day or will remain open with a minimum skeleton crew, how to coordinate time off, rules about making up for those who must work on the holiday, etc.
• Outline who is eligible for holiday pay (i.e. how long they must be employed and whether it is just for full-time employees or includes part-time employees). If part-time employees are included, specify what average minimum hours they must work to be eligible and that employees must be in good standing with the company.
• Determine whether the holiday is only for a specific day or if can be used as a floating holiday. If you make it a floating holiday, define how and when they accrue the holiday, if it can be carried over the following year, and if the holiday pay can be cashed out at the end of the year or when they leave the company.

Be cautious about being overly rigid with your holiday policy. Whenever possible, make reasonable accommodations to allow employees to take time off to not only show you care about them but to also avoid claims of discrimination.

Keep in mind that you may need to pay employees on a different day other than Juneteenth, as banks will be closed for the federal holiday, similar to Veterans Day or Memorial Day.

2. Communicate the addition to employees.

Adding a new paid holiday to staff members is a great benefit to promote. Create posters, send emails, write messages on your company's intranet, and send out a link to the most updated version of your company handbook. Ensure everyone gets word about the new holiday that has been added to your list of employee benefits.

Is Juneteenth still a paid federal holiday?

Yes. In the United States, Juneteenth Independence Day remains a paid federal holiday for federal employees.

Are banks closed for Juneteenth?

Yes. Most banks in the United States are closed on Juneteenth National Independence Day because it is a federal holiday and is observed by the Federal Reserve System. Due to banks being closed, ACH transfers and many interbank transactions will be delayed until the next business day.

Will mail be delivered on Juneteenth?

For the most part, no – regular mail is not delivered by the United States Postal Service on Juneteenth. On this national day, USPS post offices are closed, regular mail delivery is suspended, and retail postal services are unavailable. Priority Mail Express and private carriers are generally still delivered, as they operate differently.

Where Can I Get Help with Our Company Policies?

For help with updating your company holiday policy and/or your employee handbook, please contact your certified HR expert. If you are not a current Stratus HR client, please book a free consultation and our team will contact you shortly.