Do 1099 Contractors Get Holiday Pay? No, So Build It Into Your Rate
Thanksgiving week arrives. Your client closes for four days. You bill hourly, so those four days pay you nothing, while the W-2 employee next to you collects a full paycheck. If you are asking whether 1099 contractors get holiday pay, the answer is no, and the Department of Labor's own guidance makes the point bluntly: holiday pay is "generally a matter of agreement between an employer and an employee." The Fair Labor Standards Act does not require it for anyone, employees included. For contractors, who fall outside even the employee protections, there is no federal statute that obligates a client to pay for a single day you do not work.
Do 1099 contractors get holiday pay: what the law actually says
The default is simple. If your contract does not address holidays, you get paid for work you produce and nothing else. No state has a law specifically granting independent contractors paid holidays. The path to holiday pay runs through one of two doors. The first is your contract: because holiday pay is a matter of agreement, you can write paid holidays into it before work begins. Almost nobody does this, because clients push back and it complicates the relationship. The second is reclassification: some states use stricter classification tests, and if a client controls your schedule like an employee's, you may have been misclassified, which is a legal question worth pursuing separately.
The math: what 20 unpaid days cost, and the rate that covers it
Take a contractor billing $75 an hour, 8-hour days, who wants 10 federal holidays plus 10 vacation days covered, 20 unpaid days total.
| Step | Number |
|---|---|
| Daily rate | $600 |
| 20 unpaid days x $600 | $12,000 |
| Billable days (260 - 20) | 240 |
| $12,000 / 240 billable days | $50/day |
| Hourly bump ($50 / 8) | $6.25/hr |
So $75 an hour becomes $81.25. That is the price of your own holidays, priced in, collected across the year, and spent whenever you choose. A W-2 employee earning the equivalent salary gets those 20 days "free," but the employer priced them into the compensation package the same way. You are just doing the pricing yourself, which means you also get to decide how many days you actually want.
One question I cannot answer from public data: how many contractors actually do this math before setting their rate. My guess is few. Most set their rate by copying the last contractor they talked to, then feel the holidays as a series of small surprises. Put the self-funding line in your rate sheet now, before the next contract, not next January when you are already resentful.
Price the whole trade, not just the salary
See what a 1099 rate really equals in W-2 terms, benefits included.
Run the 1099 vs W-2 calculatorFrequently asked questions
Do 1099 contractors get holiday pay?
No, not by default. No federal law requires holiday pay for contractors, or even for employees. Unless your contract includes paid holidays, you are paid for work delivered and nothing else.
Can I negotiate holiday pay into a 1099 contract?
Yes, since it is a matter of agreement. In practice most contractors raise their rate to self-fund time off instead, because it is simpler and applies to every client at once.
How much extra should I charge to cover unpaid holidays?
Multiply your unpaid days by your daily rate, divide by your billable days, divide by 8. At $75 an hour with 20 unpaid days, that is about $6.25 an hour extra.
Do any states require holiday pay for contractors?
No. No state law specifically grants independent contractors paid holidays. Stricter state classification tests can reclassify a worker as an employee, which is a separate question worth checking if a client controls your schedule.
Related: 1099 vs W-2 Benefits Compared: What the W-2 Package Is Really Worth · How Much More Should You Charge as a 1099 Contractor? · Switching From W-2 to 1099: The Hidden Costs
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