A floating holiday is a perk that employers provide as a nod to religious diversity, employee satisfaction, and work-life balance.78 In the United States, employers are not required to offer paid holidays, paid vacation, or even paid sick leave. However, most full-time employees expect such compensation for time not worked as part of their benefits package. Hourly and contract employees don’t usually receive paid holidays.

In addition to at least seven to nine common paid holidays—for example, Independence Day, Labor Day, and Thanksgiving Day—some employers offer one or two floating holidays per year that employees take as needed. For instance, workers can take a paid day off to participate in elections, celebrate a birthday, attend a family reunion, take a parent-teacher day, or commemorate religious holidays.

Without floating holidays, employees would need to take personal days or paid vacation days to spend with family or devote to worship.

Westend Chemical in Queensport, Tennessee, has decided to provide two annual floating days that can be taken anytime, without blackout periods; managers must work with employees so that the workers can take these days off as they need them. The floating holidays do not accrue (i.e., they must be taken in each calendar year); however, unused days are paid out at year’s end or when a worker leaves the company. A floating holiday is a relatively inexpensive morale booster.

Your Task. 

As a human resources trainee, draft an e-mail or memo to all employees informing them about this welcome benefit that’s effective immediately. Rely on the information in the scenario, but do not copy. Consider using some of the techniques introduced in Chapter 4.