Managing a business that stays open 365 days a year—like a hospital, restaurant, hotel, or movie theater—means the holidays don’t always mean a day off. As a manager, one of the trickiest parts of workforce planning is creating a fair holiday schedule that respects employees’ personal time, keeps the business running smoothly, and complies with labor laws.
Here’s a guide to help you build a holiday schedule that’s clear, fair, and functional for everyone on your team.
What Are Floating Holidays?
Floating holidays are paid days off that employees can use at their discretion—often for religious, cultural, or personal observances that aren’t part of the company’s standard holiday calendar. Unlike fixed holidays like Christmas or Independence Day, floating holidays give flexibility and allow employees to choose what matters most to them. They’re especially valuable in diverse workplaces or for businesses that remain open during standard holidays.
Common Paid Holidays in the U.S.
Most businesses that close on holidays typically do so for:
- New Year’s Day (January 1)
- Memorial Day (Last Monday in May)
- Independence Day (July 4)
- Labor Day (First Monday in September)
- Thanksgiving Day (Fourth Thursday in November)
- Christmas Day (December 25)
Many companies also provide time off—or floating holidays—for:
- Martin Luther King Jr. Day
- Presidents Day
- Veterans Day
- Day after Thanksgiving
- Christmas Eve or New Year’s Eve
Holiday Pay and Time and a Half
Businesses that operate on holidays often offer holiday pay, which may include a higher hourly rate—commonly time and a half (1.5x the employee’s standard pay). Offering premium pay can incentivize team members to volunteer for holiday shifts while recognizing their sacrifice. Be sure to clearly communicate which holidays are eligible for holiday pay and what the policy entails.
Fair Ways to Assign Holiday Shifts
If your business operates year-round, you’ll need a system to fairly determine who works which holidays. Here are a few proven methods:
1. Holiday Sign-Up Sheets
Let employees sign up for the holidays they’re willing to work. Some may want to work holidays for the extra pay or because they don’t celebrate a particular holiday. A sign-up sheet gives employees autonomy and may help fill your schedule faster.
2. Rotation System
Keep a rotating holiday calendar where no one works the same holiday two years in a row. For example, if someone worked Thanksgiving this year, they’ll be off next year.
3. Seniority or Tenure-Based Priority
While not ideal as the only method, offering first pick to long-time employees can be balanced with fairness by rotating preferences annually or offering trade-offs.
4. First-Come, First-Served (With Limits)
This system works best if you set limits to prevent one person from grabbing all prime holidays off. Set a deadline for requests and allow managers to approve based on business needs and equity.
5. Random Drawing or Lottery
If too many people want the same holiday off, a randomized drawing may be the fairest tie-breaker.
When You Have Too Few or Too Many Volunteers
- Too Few:
If not enough people volunteer, offer incentives like time-and-a-half pay, extra PTO, gift cards, or first pick of next year’s holiday off. You may also need to assign shifts based on rotation or coverage needs. - Too Many:
If more people volunteer than needed, prioritize based on a combination of factors—who worked last year, seniority, or even drawing names to keep it impartial.
Final Tips for Managers
- Plan Early: Start gathering availability and preferences at least 6–8 weeks before major holidays.
- Be Transparent: Share the holiday scheduling policy in advance and communicate decisions early.
- Be Inclusive: Consider religious and cultural holidays that may not be on the traditional calendar.
- Be Fair: Track who worked which holidays and use a rotating or alternating system to prevent burnout or favoritism.
Need Help with Your Holiday Scheduling Strategy?
At TLitrich Solutions, we help businesses of all sizes create HR policies and workforce strategies that support their people and their operations. Whether you’re building a scheduling system from scratch or just want a more balanced way to handle holiday coverage, we’re here to help.
Let us know how we can support your team this holiday season.
Visit www.tlitrichsolutions.com for more HR tips, templates, and consulting services.