Editorial · June 25, 2021
Juneteenth Federal Holiday: What Employers Should Know
Juneteenth federal holiday status became law on June 17, 2021, when President Biden signed the Juneteenth National Independence Day Act. The law covers federal employees. It does not force private businesses to close or to pay staff for the day.
What the law does
Congress moved fast. The Senate passed the bill on Tuesday, June 15, by unanimous consent. The House followed on Wednesday, June 16, with a vote of 415 to 14. The president signed it the next day.
The act changes section 6103(a) of title 5 of the United States Code. That section lists the official holidays for federal employees. It now includes "Juneteenth National Independence Day, June 19." The Office of Personnel Management, which runs federal workforce policy, calls the law Public Law 117-17.
Juneteenth marks June 19, 1865. On that day Union soldiers brought news of freedom to enslaved people in Galveston, Texas. That was about two and a half years after the Emancipation Proclamation. Black Americans, especially in Texas, have marked the day for generations.
Who gets the day off
The new holiday applies to federal workers covered by section 6103. In 2021, June 19 falls on a Saturday. So OPM said most full-time employees with a Monday-through-Friday schedule get Friday, June 18, as the "in lieu of" day. This is the same rule used when any federal holiday lands on a weekend.
The OPM memo also covers some edge cases:
- Part-time employees do not get an "in lieu of" holiday. An agency may grant them administrative leave if its office is closed.
- Employees who must work on the holiday earn holiday premium pay. That is double their basic hourly rate for qualifying hours.
- Anyone who had planned to take paid leave on June 19 will not be charged that leave.
- A retroactive June 16 holiday was not allowed, because the law took effect on June 17.
The law had no stated start date. OPM treated it as effective at the start of the day it was signed.
What it means for private employers
A federal holiday is a rule for federal workers. It is not a rule for the whole country. Private companies decide their own holiday calendars. The Associated Press reported on June 18 that private companies are under no obligation to give any particular day off, even though many follow the federal calendar. Most private firms take their cues from the federal government, the nation's largest employer.
Many workers do not know this. A research director at Gartner told the AP that employees may wonder why they are not getting a paid day. She added that some will resent employers who do not give one.
The lead time was also very short. The signing came two days before the date. Many companies had little time to change their calendars. The AP described a mix of responses:
- Patagonia said its U.S. stores would close on Saturday and its corporate offices on Monday.
- Several major banks said employees would get a floating paid day off.
- Target, J.C. Penney and Best Buy had pledged a paid holiday in 2020, though they kept stores open.
- Walmart said staff could use paid time off to observe any holiday, including Juneteenth.
- Nasdaq said its exchange would stay open on Friday and Monday.
State offices and local rules
States set their own legal holidays. Government Executive reported that 47 states and the District of Columbia already recognized Juneteenth in some form. Some state governments moved quickly after the signing. Illinois Governor J.B. Pritzker said state offices would close on Friday. Two days earlier he had signed a state law that makes June 19 a state holiday starting next year.
If you run a business, check your own state's rules and any contracts or union agreements that set your holiday list. Paid time off for a holiday is usually a matter of your own policy or agreement. Ask an employment lawyer if you are unsure.
Questions to settle before next June
Most employers have no time to act this year. They do have time to plan for next June. These are the questions worth settling:
- Will Juneteenth be a fixed paid holiday, a floating day, or an unpaid day that staff may request?
- What happens when June 19 falls on a weekend? Federal agencies use a Friday or Monday rule, and some firms copy it.
- How will you treat hourly staff who must work that day? Federal rules pay double time. Private firms set their own rate.
- How will you tell staff? Clear notice early avoids the confusion many firms faced this week.
- Do customers or contracts depend on you being open? Banks, shippers and public agencies may be closed that day.
Whatever you choose, write it down in your handbook. A clear written policy is fair to all staff and easy to apply.
Sources
- U.S. Office of Personnel Management, memorandum CPM 2021-16, "Juneteenth National Independence Day Holiday," June 17, 2021. opm.gov
- Government Executive, "Juneteenth Will Be a New Holiday for Feds, Although It's Unclear When," June 2021. govexec.com
- Associated Press, "Federal holiday pressures companies to give Juneteenth off," June 18, 2021.