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In the United States, a Federal holiday is a holiday recognized by the United States Government. Non-essential federal government offices are closed. Banks are generally closed as well. All federal employees are paid for the holiday; those who are required to work on the holiday receive wages for that day in addition to holiday pay. Stock and futures exchanges also close on these holidays,
Federal holidays are designated by Congress in Title V of the United States Code ().[1]
The eleven recognized Federal holidays are:
The official names came from the laws that defines holidays for federal employees. The "Birthday of Martin Luther King, Jr." holiday is commonly called "Martin Luther King Day", and the "Washington's Birthday" holiday is commonly called "Presidents' Day". Independence Day is often called "The 4th of July".
New Year's Day, Independence Day, Veterans Day and Christmas Day are observed on the same calendar date each year, unless one falls on a weekend. Holidays that fall on a Saturday are observed on the previous Friday, and those that fall on a Sunday are observed the following Monday. The other holidays always fall on a particular day of the week.
Federal law does not compel states to recognize these days in any way. Most states do use the same holidays, however, for their employees as well as their public schools. Neither does the federal government recognize state and local holidays, although some offices may close as circumstances dictate.
Neither are private employers required to observe them, although many businesses will close at least for New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
Federal law also provides for the declaration of other public holidays by the President of the United States. Generally the president will provide a reasoning behind the elevation of the day, and call on the people of the United States to observe the day "with appropriate ceremonies and activities." However, there is no requirement that business or government close on these days, and many members of the general public may not be aware that such holidays even exist. Holidays proclaimed in this way may be considered "national" holidays, but are not "federal" holidays.
For example, by Executive Order, President George W. Bush declared January 2, 2007 a "National Day of Mourning" in honor of former President Gerald Ford and ordered all executive departments, independent establishments, and other governmental agencies closed. This did not apply to governmental agencies that should remain open for reasons of national security or defense or other essential public business.
Some people have objected to honoring Martin Luther King, Jr. or Christopher Columbus with holidays. As a result, Martin Luther King Day took several years to gain national acceptance and was renamed Human Rights Day in some locations. Some public schools in the US name the break given around Christmas as "Winter Holiday" or "Winter Break", to avoid the implication that all students are obligated to observe Christian holidays. All these days remain holidays for federal workers in those states.