{"id":5121,"date":"2025-07-02T09:07:32","date_gmt":"2025-07-02T07:07:32","guid":{"rendered":"https:\/\/useme.com\/en\/blog\/?p=5121"},"modified":"2026-03-26T10:56:16","modified_gmt":"2026-03-26T09:56:16","slug":"do-contractors-get-holiday-pay","status":"publish","type":"post","link":"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/","title":{"rendered":"Do contractors get holiday pay? Understanding contractors\u2019 time off"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#What_is_holiday_pay\" >What is holiday pay?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#What_are_US_federal_holidays\" >What are US federal holidays?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Contractor_vs_employee_the_risk_of_worker_misclassification\" >Contractor vs. employee: the risk of worker misclassification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Are_independent_contractors_entitled_to_paid_holidays\" >Are independent contractors entitled to paid holidays?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Do_independent_contractors_get_holiday_pay_when_working_on_federal_projects\" >Do independent contractors get holiday pay when working on federal projects?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#For_Contractors_setting_rates_and_planning_time_off\" >For Contractors: setting rates and planning time off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Can_independent_contractors_take_time_off_Heres_how_to_plan_for_it\" >Can independent contractors take time off? Here\u2019s how to plan for it<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Planning_time_off_What_your_clients_need_to_know\" >Planning time off: What your clients need to know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#Do_contractors_get_holiday_pay_%E2%80%93_final_thoughts\" >Do contractors get holiday pay \u2013 final thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/useme.com\/en\/blog\/do-contractors-get-holiday-pay\/#General_practices_for_businesses_working_with_independent_contractors\" >General practices for businesses working with independent contractors<\/a><\/li><\/ul><\/nav><\/div>\n<p><b>Contractors operate as their own business, which means they set their own rates, schedules, and policies. But this flexibility also raises questions: Can contractors charge more for working holidays? Are businesses ever required to pay extra?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This guide will break down what holiday pay looks like for 1099 contractors, how to plan time off, and what both sides should agree on before the vacation season starts.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_holiday_pay\"><\/span><b>What is holiday pay?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Holiday pay refers to paid time off (PTO) given to employees during public holidays\u00a0 \u2013\u00a0 like Independence Day or Christmas. In the U.S., however, it\u2019s not guaranteed by law. Under the Fair Labor Standards Act (FLSA), employers aren\u2019t required to pay workers for time they don\u2019t spend working, so <\/span><b>the federal holiday pay isn&#8217;t a must<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many businesses still offer paid holidays as part of their employee benefits package, but it\u2019s entirely up to the employer. <\/span><b>These policies are usually outlined in an employment contract<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hiring independent contractors requires understanding work schedules and specific tasks. Unlike employees, independent contractors operate their own business and handle their own taxes, which affects how labor laws apply to their working arrangements. Long story short \u2013 independent contractors get paid only for work completed, not for time off.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_US_federal_holidays\"><\/span><b>What are US federal holidays?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the United States, federal holidays are <\/span><b>recognized by the government and apply mainly to public sector workers<\/b><span style=\"font-weight: 400;\">. These include, among others, New Year\u2019s Day, Labor Day, Martin Luther King Jr. Day, Presidents\u2019 Day, Independence Day, and Veterans Day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Private employers, however, are not legally required to follow the federal holiday schedule or provide holiday pay to regular employees.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Contractor_vs_employee_the_risk_of_worker_misclassification\"><\/span><b>Contractor vs. employee: the risk of worker misclassification<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before diving deeper into holiday pay policies, there&#8217;s a crucial first step: making sure your workers are actually contractors and not misclassified employees. Getting this wrong could mean you owe holiday pay after all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The line between an employee and a 1099 contractor can sometimes blur. But from a legal and tax standpoint, the distinction is crucial. <\/span><a href=\"https:\/\/useme.com\/en\/blog\/employee-misclassification\/\"><span style=\"font-weight: 400;\">Misclassifying contractors<\/span><\/a><span style=\"font-weight: 400;\"> can lead to costly financial consequences and back taxes. That\u2019s why it\u2019s essential to get it right from the start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are the key differences between contractors and employees:<\/span><\/p>\n<div class=\"responsive-table-wrapper\">\n<table class=\"responsive-table\">\n<tbody>\n<tr>\n<td><b>Category<\/b><\/td>\n<td><b>Employee<\/b><\/td>\n<td><b>Independent Contractor<\/b><\/td>\n<\/tr>\n<tr>\n<td><strong>Work Control<\/strong><\/td>\n<td><span style=\"font-weight: 400;\">Employer controls how and when tasks are done<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Contractor controls how work is completed<\/span><\/td>\n<\/tr>\n<tr>\n<td><strong>Tools &amp; Equipment<\/strong><\/td>\n<td><span style=\"font-weight: 400;\">Provided by employer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Provided by contractor<\/span><\/td>\n<\/tr>\n<tr>\n<td><strong>Taxes &amp; Benefits<\/strong><\/td>\n<td><span style=\"font-weight: 400;\">Employer withholds taxes, provides benefits<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Contractor handles their own taxes and insurance<\/span><\/td>\n<\/tr>\n<tr>\n<td><strong>Job Duration<\/strong><\/td>\n<td><span style=\"font-weight: 400;\">Ongoing or permanent<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Usually project-based or short-term<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Remember, that when you settle deals through dedicated platform like <a href=\"https:\/\/useme.com\/en\/for-employer\/\">Useme<\/a>, you can be sure that the whole process will be 100% compliant.<\/p>\n<div class=\"hs-cta-embed hs-cta-simple-placeholder hs-cta-embed-284467431634\" style=\"max-width: 100%; max-height: 100%; width: 2112px; height: 512.5694580078125px;\" data-hubspot-wrapper-cta-id=\"284467431634\">\n<p>&nbsp;<\/p>\n<div class=\"hs-cta-embed hs-cta-simple-placeholder hs-cta-embed-284486842597\" style=\"max-width: 100%; max-height: 100%; width: 2112px; height: 512.5694580078125px;\" data-hubspot-wrapper-cta-id=\"284486842597\"><a href=\"https:\/\/cta-eu1.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLKiwMfHK6%2FOP1LNsvZWlvTRlu7nrK%2B%2BKixuzcTjOllkx3eQ9nHoElOwkjmJx%2FX13zIj%2FWCvhod%2F1Nu%2BubmvcpFbiHUJO9n4PDJYw5kE7rUgc4Rspt5BhByEfJ04CIYs%2BwDWEocuwSvwAQoUS9kf9tvRCQoS7mJAlR5fgwuW6xpvkEv5ZpRDqWt8IdEqVg%3D%3D&amp;webInteractiveContentId=284486842597&amp;portalId=27198211\" target=\"_blank\" rel=\"noopener\"><br \/>\n<img decoding=\"async\" style=\"height: 100%; width: 100%; object-fit: fill;\" src=\"https:\/\/hubspot-no-cache-eu1-prod.s3.amazonaws.com\/cta\/default\/27198211\/interactive-284486842597.png\" alt=\"baner 1 (2)\" \/><br \/>\n<\/a><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<h3><b>Understanding behavioral control and financial control: how the IRS tells the difference<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When talking about worker misclassification, it has to be said that the IRS doesn\u2019t rely on job titles or company preferences. Instead, it looks at how the work relationship functions in practice. In other words, the IRS examines <\/span><b>behavioral control<\/b><span style=\"font-weight: 400;\"> (how work is performed) and <\/span><b>financial control<\/b><span style=\"font-weight: 400;\"> (business aspects of the worker&#8217;s job) to distinguish between <\/span><b>traditional employees<\/b><span style=\"font-weight: 400;\"> and <\/span><b>independent contractors<\/b><span style=\"font-weight: 400;\">. This process is guided by what\u2019s known as the <\/span><b>Economic Realities Test<\/b><span style=\"font-weight: 400;\">, which considers three main factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Control over work<\/b><span style=\"font-weight: 400;\">: Does your business decide how tasks are performed? Do you train or supervise the worker daily?<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">If yes, the person likely qualifies as an employee.<\/span><\/i><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial arrangement<\/b><span style=\"font-weight: 400;\">: Are they paid a fixed salary or reimbursed for expenses? Do they rely on your company as their main source of income?<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">If they aren\u2019t financially independent, they may not be a true contractor.<\/span><\/i><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Nature of the relationship<\/b><span style=\"font-weight: 400;\">: Is there a long-term agreement or promise of ongoing work? Are you offering benefits like paid leave or insurance?<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><i><span style=\"font-weight: 400;\">These point toward an employee status.<\/span><\/i><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Treating a contractor as an employee \u2013 or vice versa \u2013 isn\u2019t just a paperwork error. If the IRS or Department of Labor finds a misclassification, your business could be responsible for unpaid taxes, interest, and penalties. You might also owe back wages or face audits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To protect your business:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Always use clear, written contracts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid offering benefits reserved for employees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File the right forms (like <\/span><a href=\"https:\/\/useme.com\/en\/blog\/1099-nec-form\/\"><span style=\"font-weight: 400;\">Form 1099-NEC<\/span><\/a><span style=\"font-weight: 400;\"> for contractors).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When in doubt, consult a tax professional.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Read our <\/span><a href=\"https:\/\/www.google.com\/search?q=https:\/\/useme.com\/en-us\/blog\/independent-contractor-guide-taxes-compliance-and-important-definitions,135\"><span style=\"font-weight: 400;\">Independent Contractor Guide: Taxes, Compliance, and Important Definitions<\/span><\/a><span style=\"font-weight: 400;\"> to learn more about the differences between a 1099 contractor, a regular worker, and a freelancer.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_independent_contractors_entitled_to_paid_holidays\"><\/span><b>Are independent contractors entitled to paid holidays?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Independent contractors are not employees. As self employed workers who may serve multiple clients, they run their own business, choose their schedules, and decide when to take time off. Because of that, they\u2019re only paid for the work they complete \u2013 not for the days they don\u2019t work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do 1099 contractors get holiday pay? The answer depends on the contractor agreement. <\/span><b>Unless the contract with a freelancer clearly states otherwise, you are not obligated to pay a contractor for holidays, sick leave, parental leave, or vacation time.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">\ud83d\udca1You don\u2019t need a traditional contract to make your collaboration with a freelancer legal. With Useme, it\u2019s the platform \u2013 not you \u2013 that signs the agreement with the freelancer. The intermediary makes things easier for both sides.<\/span><\/p>\n<div class=\"hs-cta-embed hs-cta-simple-placeholder hs-cta-embed-284467431634\" style=\"max-width: 100%; max-height: 100%; width: 2112px; height: 512.5694580078125px;\" data-hubspot-wrapper-cta-id=\"284467431634\"><a href=\"https:\/\/cta-eu1.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLL%2B%2FDTI5dGtiOQ12rIxzrTiRpEbHr5dJdYYeY3xZj%2FJNau7XUuwTOmfbZMnlUTraQS4GsE%2FvKtx8XER4D1M%2B9w7gcqmCT0Mk3YZtllvVys9AHmgSZc7VrGaVIhvqZsBiFvwQII%2FQKAN8nCm9UiWwmXjZAdXIfQ4SfbIENRgNVWyGqS6ilI%3D&amp;webInteractiveContentId=284467431634&amp;portalId=27198211\" target=\"_blank\" rel=\"noopener\"><br \/>\n<img decoding=\"async\" style=\"height: 100%; width: 100%; object-fit: fill;\" src=\"https:\/\/hubspot-no-cache-eu1-prod.s3.amazonaws.com\/cta\/default\/27198211\/interactive-284467431634.png\" alt=\"baner 1 (1)\" \/><br \/>\n<\/a><\/div>\n<p><span style=\"font-weight: 400;\">As we said before, in the U.S., paid time off \u2013 including holidays \u2013 isn\u2019t legally required, even for full-time employees. The applicable federal law is the Fair Labor Standards Act (FLSA), which establishes minimum wages and overtime pay. However, it doesn\u2019t mandate paid vacation or sick pay. These benefits are typically offered by employers to attract and retain talent.<\/span><\/p>\n<h3><b>Overtime pay when hiring independent contractors<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The overtime pay laws that apply to full-time employees do not extend to independent contractors in the gig economy. That means <\/span><b>if a contractor works on a national holiday or outside standard hours, they aren\u2019t automatically entitled to higher pay<\/b><span style=\"font-weight: 400;\"> \u2013 unless you both agreed to that in writing.<\/span><\/p>\n<h3><b>Do state laws require paid time off for contractors?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In most states, <\/span><b>contractors do not receive holiday pay by law<\/b><span style=\"font-weight: 400;\">. Even in states with stronger labor protections like Rhode Island or Massachusetts, holiday pay requirements typically apply only to employees \u2013 not independent contractors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">California, however, has introduced additional scrutiny around contractor status through <\/span><b>Assembly Bill 5 (AB5)<\/b><span style=\"font-weight: 400;\">. This law uses the <\/span><b>ABC Test<\/b><span style=\"font-weight: 400;\"> to determine whether a worker truly qualifies as an independent contractor. To maintain contractor status under AB5, a worker must:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A) Be free from company control in how the work is done.<br \/>\n<\/span><span style=\"font-weight: 400;\">B) Perform services outside the core activities of the business.<br \/>\n<\/span><span style=\"font-weight: 400;\">C) Have an independent business doing the same type of work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a contractor in California fails this test, the business must reclassify them as an employee, which may mean they\u2019re now entitled to benefits such as overtime or paid holidays, depending on company policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Misclassifying contractors as employees can lead to financial penalties and legal consequences, making compliance crucial for businesses.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Do_independent_contractors_get_holiday_pay_when_working_on_federal_projects\"><\/span><b>Do independent contractors get holiday pay when working on federal projects?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Most standard contractor work doesn&#8217;t require holiday pay, but federal projects can be a different story.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Working with government contractors on federally-funded projects comes with extra layers of rules, especially when it comes to wages, holidays, and benefits. <\/span><b>While independent contractors generally don\u2019t receive holiday pay, certain federal regulations may create exceptions <\/b><span style=\"font-weight: 400;\">\u2013 particularly if your project falls under specific laws.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s what U.S. businesses need to know when hiring contractors for government work.<\/span><\/p>\n<h3><b>Special cases: PTO for government contractors<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In most cases, independent contractors are not entitled to holiday pay, even if they work on a federal holiday. They are considered self-employed and negotiate their own rates, schedules, and availability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if a contractor is hired on a federally funded project, things may get more complex. In some situations, <\/span><b>the law may require minimum pay levels that include benefits like holiday premiums<\/b><span style=\"font-weight: 400;\"> \u2013 but only for certain types of workers and contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s break it down.<\/span><\/p>\n<h3><b>Two federal laws that may influence holiday pay<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Davis-Bacon and Related Acts (DBRA)<\/b><span style=\"font-weight: 400;\"> If your business is involved in construction, alteration, or repair work on federally funded public buildings or infrastructure \u2013 and the contract is over $2,000 \u2013 the Davis-Bacon Act could apply.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Under this law, contractors and subcontractors must pay on-site workers no less than the \u201cprevailing wages and fringe benefits\u201d in the local area. These wage standards are published by the U.S. Department of Labor.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Holiday pay implications:<\/b><span style=\"font-weight: 400;\"> If local wage rules include extra compensation for working on holidays, then your business must match those terms. This doesn\u2019t apply directly to independent contractors, but if someone is classified as a <\/span><b>mechanic or laborer<\/b><span style=\"font-weight: 400;\">, and not a contractor by legal standards, you\u2019re responsible for paying accordingly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>McNamara-O\u2019Hara Service Contract Act (SCA<\/b><span style=\"font-weight: 400;\">) This act covers non-construction service contracts over $2,500 performed for the federal government. It applies to a broad range of services, from janitorial work to administrative support.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Under the SCA, service workers must be paid at least the prevailing wage in the project\u2019s location. If there was a prior contractor with a union agreement, the new contract must meet or exceed those same wage and benefit levels.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Holiday pay implications:<\/b><span style=\"font-weight: 400;\"> If the previous contract included holiday premiums or paid time off, your business must uphold those same standards \u2013 again, only for service employees, not truly independent contractors.<\/span><\/li>\n<\/ol>\n<h3><b>What about state or local government projects?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you&#8217;re working on a project funded by state or local governments, similar wage rules may apply. Some states have \u201clittle Davis-Bacon\u201d laws or other labor protections that include holiday premiums or mandatory fringe benefits for workers on public contracts.<\/span><\/p>\n<p><b>Always review the contract and applicable local laws carefully before hiring contractors for public-sector work.<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"For_Contractors_setting_rates_and_planning_time_off\"><\/span><b>For Contractors: setting rates and planning time off<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re a contractor yourself, here&#8217;s what you need to know about holiday work and taking time off.<\/span><\/p>\n<h3><b>Can 1099 contractors charge more for holiday work?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, because unlike regular workers, 1099 contractors aren\u2019t guaranteed overtime or holiday pay. But they <\/span><b>can set their own rates<\/b><span style=\"font-weight: 400;\">, including premium pricing for work done on public holidays like Thanksgiving or Christmas.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contractors typically negotiate their rates based on specialized skills and availability, allowing them to set premium pricing for public holidays.<\/span><\/p>\n<h3><b>Best practices for contractors: how to set holiday rates<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Discuss early:<\/b><span style=\"font-weight: 400;\"> Before you start the project, ask about expected holiday hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Include it in your contract:<\/b><span style=\"font-weight: 400;\"> Make sure the rate for holiday work is clearly outlined and agreed upon.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Be transparent:<\/b><span style=\"font-weight: 400;\"> Let the client know why your rate is higher for holiday work \u2013 you&#8217;re making yourself available during a time most people are off.<\/span><\/li>\n<\/ul>\n<h3><b>Why it matters<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Working on holidays takes away from personal time. Charging more reflects both your availability and the added value of meeting urgent or off-hours needs.<\/span><\/p>\n<p><b>\ud83d\udccc Tip for businesses:<\/b><span style=\"font-weight: 400;\"> If you need freelance help during the holidays, expect to pay more \u2013 and lock in rates in writing upfront.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_independent_contractors_take_time_off_Heres_how_to_plan_for_it\"><\/span><b>Can independent contractors take time off? Here\u2019s how to plan for it<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the best parts of being an independent contractor is flexibility. You choose your projects, set your schedule, and decide how much you want to work. But that freedom comes with a tradeoff: there&#8217;s no paid vacation, sick leave, vacation days, or sick days by default.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re self-employed, stepping away from work means hitting pause on your income \u2013 unless you plan ahead. Whether you\u2019re thinking about a vacation, sick days, or unexpected family needs, <\/span><b>here\u2019s how to take time off without losing control of your business or burning out<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Option 1: Save up and hit pause<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This is the most common approach. If you want true, uninterrupted time off, you\u2019ll need to set aside enough money in advance to cover your expenses while you&#8217;re not working.<\/span><\/p>\n<p><b>How to do it:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Estimate how long you want to take off.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calculate the average income you\u2019d lose during that time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Save up gradually \u2013 some freelancers create a \u201cvacation fund\u201d or build this into their monthly budgeting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inform clients well in advance, especially if you have ongoing projects.<\/span><\/li>\n<\/ul>\n<p><b>\u2705 Pro tip:<\/b><span style=\"font-weight: 400;\"> Add extra buffer days to your return date. This gives you time to ease back in or handle any post-holiday surprises.<\/span><\/p>\n<h3><b>Option 2: Delegate the work<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If your services can\u2019t pause \u2013 or you want to avoid a gap in client support \u2013 you can <\/span><b>hire help<\/b><span style=\"font-weight: 400;\"> to keep things running.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on your field, this could be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A <\/span><b>subcontractor<\/b><span style=\"font-weight: 400;\"> to handle deliverables while you\u2019re gone.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A <\/span><b>virtual assistant<\/b><span style=\"font-weight: 400;\"> to manage emails, invoicing, or client communication.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A <\/span><b>project manager<\/b><span style=\"font-weight: 400;\"> to coordinate deadlines and updates.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This way, your business stays active even when you\u2019re offline. Just be sure to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brief your support team clearly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get client permission (if needed).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up contracts and payment agreements in advance.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While this option involves paying someone else, it may be worth it to protect long-term client relationships.<\/span><\/p>\n<h3><b>Option 3: Scale back, don\u2019t shut down<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">For shorter breaks or personal emergencies, a full stop may not be necessary. If you&#8217;re dealing with a brief illness or a child home from school, you might choose to reduce your workload rather than pause entirely.<\/span><\/p>\n<p><b>Ideas to make it work:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Extend deadlines where possible.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus only on urgent tasks or priority clients.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Let clients know your availability may be limited.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automate what you can (invoices, messages, etc.).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This approach helps you stay present in your business while giving yourself breathing room.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Planning_time_off_What_your_clients_need_to_know\"><\/span><b>Planning time off: What your clients need to know<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Clear communication is key when you&#8217;re stepping away. Here\u2019s how to handle it professionally:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Give plenty of notice (2\u20134 weeks if possible).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set clear expectations: when you\u2019ll be away, how urgent tasks will be handled, and when you&#8217;ll return.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offer alternatives, like early delivery or backup support.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Update your out-of-office message and autoresponders.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Clients will more likely respect your need for time off if you\u2019re proactive and transparent.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Do_contractors_get_holiday_pay_%E2%80%93_final_thoughts\"><\/span><b>Do contractors get holiday pay \u2013 final thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So, do independent contractors get holiday pay? Overall, the short answer is that freelancers don&#8217;t receive certain benefits like health insurance or paid holidays that employees receive. Independent contractors aren&#8217;t independent contractors entitled to vacation pay under U.S. labor laws \u2013 and most states don\u2019t require it either.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, they can charge higher rates for holiday work, as long as it\u2019s negotiated upfront. <\/span><b>Understanding labor laws and contractor agreements is crucial for ensuring compliance and fair treatment.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For contractors, the key is to treat time off like any other part of business: plan ahead, communicate with clients, and include clear terms in your contracts. Whether it\u2019s taking a break or charging extra for holiday hours, you\u2019re in control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses, working with contractors means more flexibility \u2013 but also more responsibility. You don\u2019t have to offer holiday pay, but you should discuss expectations early and respect your contractor\u2019s availability. Fair, transparent agreements help build strong, long-term partnerships.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"General_practices_for_businesses_working_with_independent_contractors\"><\/span><b>General practices for businesses working with independent contractors<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To avoid confusion and legal risk, follow these steps when working with freelancers or independent professionals to ensure fair treatment in contractor relationships while maintaining compliance:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Put everything in writing:<\/b><span style=\"font-weight: 400;\"> Clearly define the contractor\u2019s scope of work, payment terms, and whether any time off (paid or unpaid) is allowed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Don\u2019t assume you\u2019re the only client: <\/b><span style=\"font-weight: 400;\">Contractors work on their own schedule and may serve multiple clients.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Avoid treating contractors like employees:<\/b><span style=\"font-weight: 400;\"> Don\u2019t dictate schedules or assign company equipment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stay informed about local laws:<\/b> If your business operates in states like California, be especially careful with classification rules.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>When the holidays roll around, many full-time employees look forward to paid time off. But if you&#8217;re an independent contractor \u2013 or you regularly hire independent workers \u2013 the rules around &#8220;employee&#8221; benefits are different.<\/p>\n","protected":false},"author":27,"featured_media":5122,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[25,23],"tags":[],"class_list":["post-5121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-employers","category-for-freelancers"],"modified_by":"Marta","_links":{"self":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/5121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/comments?post=5121"}],"version-history":[{"count":7,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/5121\/revisions"}],"predecessor-version":[{"id":5325,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/posts\/5121\/revisions\/5325"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/media\/5122"}],"wp:attachment":[{"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/media?parent=5121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/categories?post=5121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/useme.com\/en\/blog\/wp-json\/wp\/v2\/tags?post=5121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}