Thanksgiving Overtime Pay: Do You Qualify in Your State?
Thanksgiving brings bustling stores, crowded restaurants, and round-the-clock essential services. If you're among the millions working through the holidays, you might wonder about overtime pay on Thanksgiving.
Here's the reality: holiday shifts don't automatically mean extra pay under federal law. This guide breaks down federal regulations, state variations, and employer policies, plus practical solutions if holiday payroll delays leave you waiting for your check.
What counts as overtime under federal law
Federal overtime rules remain straightforward: the Fair Labor Standards Act (FLSA) requires employers to pay 1.5 times your regular rate for any hours worked beyond 40 in a workweek. This applies to non-exempt employees, typically hourly workers or salaried employees earning below specific thresholds.
Here's what surprises many workers: federal law doesn't require extra pay simply for working on Thanksgiving. The Department of Labor states that holidays count as regular work hours. This means if you work 8 hours on Thanksgiving as part of a 40-hour week, you'll earn your standard rate, not overtime.
The distinction between "holiday pay" and "overtime pay" matters. Holiday pay refers to premium rates some employers offer for working on holidays, but this comes from company policy, not federal mandate. Overtime pay kicks in only when you exceed 40 weekly hours.
And recent changes to salary levels expand overtime eligibility. As of January 2025, salaried workers earning less than $58,656 annually may qualify for overtime protection. These updates mean more workers who pull holiday shifts may qualify for overtime when their weekly hours exceed 40.
How Thanksgiving holiday pay works by state
While federal law sets the overtime baseline, states can establish their own holiday pay requirements. Most states follow federal guidelines, meaning no mandatory holiday premium for private employers. However, some states and specific industries operate differently.
Rhode Island stands out with unique holiday regulations for certain businesses. Employees may be eligible for 1.5 times pay on certain legal holidays, though rules vary by business size and type, so check state regulations to be sure.
California's daily overtime rules also create more opportunities for holiday overtime. In California, workers earn overtime for hours beyond 8 in a single day or 40 in a week, whichever provides greater benefit. This means a 12-hour Thanksgiving shift could trigger 4 hours of overtime pay, even if your weekly total stays under 40.
There are several other ways you might qualify for Thanksgiving overtime pay:
- Union contracts and collective bargaining agreements may include holiday pay provisions that exceed legal minimums.
- Healthcare workers, public safety personnel, and transportation employees may have negotiated holiday premiums.
- Federal employees may receive specific holiday premium pay under civil service regulations, typically double pay for up to 8 non-overtime holiday hours.
Check with your state labor department for specific rules in your area.
Employer policies that affect holiday pay
Your employee handbook holds the key to understanding holiday compensation at your company. Many employers voluntarily offer holiday premiums to attract workers during busy seasons or show appreciation for holiday coverage. These policies vary widely but can exceed federal requirements. When employer policies promise holiday pay, they may become legally binding through your employment agreement.
Retail giants and grocery chains commonly offer time-and-a-half or double-time rates for major holidays. Some provide additional incentives like shift differentials or bonus pay. And hospitality businesses might offer premium rates plus tips, recognizing the sacrifice of working while others celebrate.
Manufacturing and healthcare facilities often have detailed holiday pay structures. Some rotate holiday assignments with premium pay, while others offer compensatory time off. Emergency services and utilities frequently provide substantial holiday premiums since continuous coverage remains essential.
The bottom line: employer policy typically matters more than federal law for holiday pay. Review your company's holiday pay policy before Thanksgiving to set realistic expectations. Union members should consult their collective bargaining agreement for negotiated holiday rates.
How Thanksgiving can delay your paycheck
Holiday weekends can disrupt normal payroll schedules, potentially delaying when you receive your wages. Banks close on Thanksgiving Thursday and often operate limited hours on Friday, affecting payment processing times.
Direct deposits typically process through the Automated Clearing House (ACH) network, which doesn't operate on federal holidays. If your regular payday falls on Thanksgiving, your employer might process payroll early, but this depends entirely on their payroll practices. Some companies run holiday payroll a day early, while others simply delay until the next business day.
Paper checks can face additional delays. Mail doesn't run on Thanksgiving, and many workers can't reach HR offices or supervisors to collect checks until after the holiday weekend. Pay cards might load on schedule, but can face processing delays or limited reload locations during holidays.
Weekend timing can further compound these issues. When Thanksgiving creates a four-day weekend for banking, workers depending on specific paydays may be forced to wait until Monday or Tuesday for funds to clear. These delays can affect bill payments, grocery shopping, and holiday preparations when you need money most.
Planning ahead may help you avoid holiday pay crunches. Ask HR about holiday payroll schedules, confirm direct deposit information, and consider backup options if delays seem likely.
How to access your salary when you need cash now
When paycheck delays threaten to disrupt your plans, several options can help you access money you've already earned. Understanding these cash advance alternatives can help you make informed decisions about short-term cash needs.
- Payroll advances: A payroll advance from your employer offers one solution, though not all companies provide this option.
- Earned wage access (EWA): Some employers partner with earned wage access providers, letting workers access portions of earned pay before scheduled paydays. But other EWA services, like EarnIn, are available to eligible users with direct deposit, regardless of whether your employer offers EWA. EarnIn's Cash Out lets you access up to $150 daily of your earned wages, with a maximum of $1,000 between paydays1. The service operates on an optional tip model2 with no mandatory fees or interest charges. Standard transfers typically arrive within 1-3 business days, while Lightning Speed3 delivers funds within minutes, starting at $3.99 per transfer.
- Expedited transfers: Same-day bank transfers might speed up access if your bank offers early direct deposit or instant transfer features. Some financial institutions release funds as soon as they receive payroll notifications, potentially delivering paychecks 1-2 days early. Check if your bank provides these services.
Real-world situations show why faster pay access matters. Missing a bill payment due to payroll delays can trigger late fees, while car repairs, medical expenses, or unexpected costs while preparing Thanksgiving dinner don't wait for delayed paychecks. Having options to access earned wages can help navigate these timing challenges.
Thanksgiving pay scenarios
Understanding different pay scenarios helps clarify what to expect this Thanksgiving. Here's a quick reference guide:
Scenario | Overtime Pay? | Holiday Pay? | Notes |
Work over 40 hours in Thanksgiving week | Yes | Only if policy allows | Federal law requires 1.5x pay for hours beyond 40 |
Under 40 hours, work on Thanksgiving | No | Company policy or state law applies | Check employee handbook for holiday provisions |
12-hour Thanksgiving shift in California | Yes (4 hours) | Depends on employer | Daily overtime after 8 hours |
Federal employee working Thanksgiving | Regular OT rules | Yes - up to double pay | Civil service holiday premium applies |
This table shows general scenarios, so keep in mind your specific situation depends on employment status, location, and employer policies. Non-exempt employees typically qualify for overtime, while exempt employees generally don't receive overtime regardless of hours worked.
Know your rights and plan ahead
Deciding whether it makes sense to pick up a shift on Thanksgiving starts with understanding your rights. Review your employer's holiday pay policy before accepting shifts. And be sure to document your hours carefully, especially during busy holiday periods when schedules change frequently.
Financial planning can help you avoid holiday cash crunches. If your employer historically delays holiday payroll, arrange bill due dates accordingly, and consider setting aside small emergency funds throughout the year for unexpected timing issues.
When you need money before delayed paychecks arrive, evaluate options carefully. Compare fees, timing, and total costs. Cash Out may help bridge timing gaps without interest charges or mandatory fees. Whatever option you choose, use it as a temporary solution while building longer-term financial stability.
FAQs
Does federal law require employers to pay extra for working on Thanksgiving?
No, federal law doesn't require private employers to pay extra for Thanksgiving work. The Fair Labor Standards Act treats holidays as regular workdays. Overtime pay only applies when you exceed 40 hours in a workweek, regardless of whether those hours fall on a holiday.
Which states offer mandatory holiday pay for Thanksgiving shifts?
Very few states mandate holiday pay for private employers. Rhode Island and California have specific regulations on some holidays. Most holiday pay comes from employer policies, union contracts, or collective bargaining agreements rather than state requirements.
Can your employer delay your paycheck because of Thanksgiving bank closures?
Thanksgiving can delay paychecks since banks close on federal holidays. Direct deposits won't process on Thanksgiving Thursday, potentially pushing payments to the next business day. Some employers run payroll early to avoid delays, while others simply delay until after the holiday. Check with HR about your company's holiday payroll schedule.
What can workers do if they need cash before their delayed paycheck arrives?
Workers have several options: request payroll advances from employers, use earned wage access services, or check if their bank offers early direct deposit. Cash Out provides eligible users access to up to $150 daily of earned wages with no mandatory fees or interest1. Standard transfers take 1-3 business days, while Lightning Speed3 delivers funds in minutes starting at $3.99.
How does earned wage access compare to payday loans for covering holiday expenses?
Earned wage access typically costs less than payday loans. Cash Out operates on an optional tip model2 with no interest or mandatory fees for standard transfers. Unlike payday loans that create new debt, earned wage access lets you access wages you've already earned.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.
1
EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out. For additional information about your Daily Max and Pay Period Max, please refer to our FAQ. Service may not be available in all states. EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. See the Fee Table for details. Tips are optional and do not affect the quality or availability of services.
2
Tips go to EarnIn and help us provide tools such as Credit Monitoring for free and keep Lightning Speed fees low. Your service quality and availability aren't affected by whether you tip or not.3
Lightning Speed is an optional service that allows you to expedite the transfer of funds for a fee. Depending on the product, the fee may be charged by EarnIn or its banking partner. Lightning Speed may not be available to all customers. Actual transfer speeds depend on your bank. See the Lightning Speed Fee Table for details.Popular articles
Oct 31, 2025
7 min read
