Is New Year's Eve Time and a Half?

What the law actually says about New Year's Eve

Under the federal Fair Labor Standards Act (FLSA), working a holiday is not a pay event at all. The FLSA requires overtime only after 40 hours in a workweek; it does not require premium pay for holidays, nights, or weekends. The U.S. Department of Labor is explicit that extra pay for holiday work is a matter of agreement between employer and employee.

New Year's Eve is not a federal holiday, even though New Year's Day is. Federal offices are generally open on December 31 unless an executive order closes them.

So why do so many people get time and a half on New Year's Eve?

Hospitality, restaurants, transportation, and healthcare frequently offer premiums for the late shift because it is hard to staff. That is policy, not federal law.

Three things can turn a holiday shift into a premium-pay shift, and none of them is the FLSA:

Employer policy — a handbook holiday-pay schedule, usually listing which holidays qualify and at what multiplier.
A union contract — collective bargaining agreements routinely name paid holidays and premium rates, and they are enforceable.
State law — a small number of states have holiday/Sunday premium rules for certain retail employers. Rhode Island is the most notable; check your own state, because several states that once had these rules have repealed them. Start with the overtime rules by state page.

Holiday pay and overtime are two different things

This is the trap. If you take New Year's Eve as a paid day off, those 8 holiday hours generally do not count toward the 40-hour overtime threshold — they were paid, but not worked. So a week with a paid holiday plus a couple of extra shifts can total 44 paid hours while producing zero FLSA overtime. If you actually work New Year's Eve, those hours count normally. Run the full picture in the overtime calculator.

If you are paid double time instead

Some employers pay 2x rather than 1.5x on major holidays — again, by policy. The double time calculator handles that multiplier, and the calculator above lets you set a custom one if your contract uses something unusual.

Taxes on your New Year's Eve premium

Holiday premium pay is ordinary income — there is no special holiday tax rate. One nuance for 2025 through 2028: the federal deduction commonly called “no tax on overtime” covers the premium portion of FLSA-required overtime. A holiday premium your employer pays voluntarily is generally not FLSA-required overtime, so it usually would not qualify on its own. Size what does qualify with the no tax on overtime calculator. This is general information, not tax advice.

Check every holiday

The answer is the same federal answer for all of them, but observance and typical practice differ. Compare on the holiday pay by holiday page, or get the quick rate math from the holiday pay calculator.

New Year's Eve pay FAQ

Is New Year's Eve time and a half?

Not automatically. No federal law requires extra pay for working New Year's Eve. Under the Fair Labor Standards Act, holiday work is paid at your normal rate unless your employer's policy, your union contract, or a state law provides a premium. New Year's Eve is not even a federal holiday, so there is no federal closure or pay rule attached to it. Many employers do pay time and a half by policy, so check your handbook.

How much is time and a half for a New Year's Eve shift?

Time and a half is 1.5 times your regular hourly rate. At $20 an hour that is $30 per hour, so an 8-hour New Year's Eve shift pays $240 instead of $160. Enter your own rate in the calculator above to see your exact figure — and confirm your employer actually pays a holiday premium before counting on it.

Do New Year's Eve hours count toward overtime?

Hours you actually work on New Year's Eve count toward the 40-hour workweek like any other hours. Holiday hours that are paid but not worked — a paid day off — generally do not count toward the 40-hour overtime threshold under the FLSA. That distinction is why a week with a paid holiday plus extra shifts sometimes produces less overtime than workers expect.

Can my employer make me work New Year's Eve?

Generally yes. The FLSA does not restrict an employer from scheduling work on New Year's Eve, and it does not require extra pay for it. Limits can come from a union contract, an employment agreement, state law, or religious-accommodation obligations under Title VII.