Floating Holiday: Meaning and Overview
A floating holiday refers to a type of paid time off that employees can use at their discretion, typically for personal reasons or to observe a holiday that is not part of the company’s standard holiday calendar, such as New Year’s Day or Christmas. Since the day is chosen by the employee and not tied to a fixed date, it’s referred to as “floating.”
Why Employers Offer Floating Holidays
Floating holidays are often used as a flexible benefit to enhance employee satisfaction and support diversity in the workplace. This is particularly valuable for companies with a multicultural workforce, where employees may observe holidays that aren’t traditionally recognized on a company-wide level.
Ellen Slane, an HR Business Partner and Trainer at Employers Advantage, explains, “Floating holidays are an excellent way for organizations to honor cultural and religious differences across their teams. They empower employees to take meaningful time off without reducing their regular PTO balance.”
Floating holidays can also support operational fairness. For example, if customer-facing employees must work during busy periods like Black Friday while corporate employees have the day off, offering a floating holiday helps create a sense of equity. It’s worth noting that employees aren’t required to use floating holidays for specific cultural events—many use them for personal time, birthdays, mental health days, or just to catch up on life.
Communicating Floating Holiday Policies to Employees
To ensure clarity and consistency, employers should define their floating holiday policy in writing, often in the employee handbook. This section should detail how floating holidays are awarded, how they can be used, and who is eligible.
Here are key elements to cover in the policy:
- Eligibility – Which employees qualify for floating holidays (e.g., full-time only)?
- Accrual – How many floating holidays are granted per calendar year?
- Request Process – What is the procedure for requesting a floating holiday, and how much notice is required?
- Usage Restrictions – Are there blackout periods or operational constraints that limit when floating holidays can be taken (e.g., peak retail seasons or end-of-year deadlines)?
Ellen Slane notes that the policy doesn’t need to be complicated. She shares this simple sample paragraph as a guideline:
Should Your Company Offer Floating Holidays?
While floating holidays are not required by federal or state law, offering them can be a strategic advantage. They serve as a gesture of inclusivity and flexibility, showing employees that the company values their time and personal priorities.
For employers looking to stand out in a competitive job market, or retain top talent, floating holidays can be an attractive addition to the benefits package. Beyond can help companies streamline their leave tracking processes and integrate flexible time-off policies that align with their workforce’s needs.