A Holiday Falls Inside Your Bi-Weekly Pay Period: Now What?
October 23, 2026
When a paid holiday falls within a bi-weekly pay period, it affects only the specific workweek it falls in — the holiday pay hours are recorded separately from worked hours in that one week, while the other week in the period is unaffected.
Skip the math and get your answer instantly:
Open the Bi-Weekly Time Card Calculator →Worked Example
An employee works 32 hours in week 1 (8 hours short due to a paid holiday) plus 8 hours of holiday pay, and 40 hours in week 2.
- Week 1: 32 worked hours + 8 holiday hours = 40 total paid hours, but only 32 count as worked hours for overtime purposes
- Week 2: 40 worked hours, unaffected by the holiday
- Neither week has overtime in this example, since worked hours stay at or below 40 in both
Why Holiday Hours Don't Count as Worked Hours
As covered in the dedicated article on this elsewhere in this series, holiday pay is paid-but-not-worked time and generally doesn't count toward the 40-hour overtime threshold — this remains true whether the holiday falls in week 1 or week 2 of a bi-weekly period.
Frequently Asked Questions
Does a holiday within a bi-weekly period affect both weeks?
No — it only affects the specific workweek it falls within; the other week in the period is unaffected.
Do holiday hours count toward the 40-hour overtime threshold?
Generally no — holiday pay is paid-but-not-worked time, separate from the worked-hours overtime calculation.
What's the total paid hours in the worked example here?
40 hours in week 1 (32 worked + 8 holiday) and 40 hours in week 2, with no overtime in either week.
Should holiday hours be recorded separately from worked hours?
Yes — keeping them as a distinct line item avoids incorrectly including them in an overtime calculation.