How Do Holidays Affect FMLA Leave Calculations? A DOL Opinion Letter Explains.

When an employee takes Family and Medical Leave Act (FMLA) leave during a week with a holiday, the entire week counts as FMLA leave if the employee was scheduled for a full week off. However, if leave is taken intermittently, the holiday is not counted against the employee’s 12-week entitlement unless they were scheduled to work that day. This clarification, from a recent U.S. Department of Labor (DOL) opinion letter, ensures employers calculate leave accurately without interfering with employee rights.

What Are the Basic Rules for Tracking FMLA Leave?

The FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year. Employers typically track this leave in full-week increments. However, employees can also take leave on an intermittent basis (taking leave in separate blocks of time) or a reduced leave schedule (reducing their usual weekly hours). When leave is taken for less than a full week, employers must calculate usage on a pro-rata basis, meaning the leave used is a proportion of the employee's actual workweek. This often requires converting weeks into hours for precise tracking, a process essential for compliance.

How Is FMLA Leave Calculated for a Full Week with a Holiday?

The calculation is straightforward when an employee takes a full, continuous week of FMLA leave. If a holiday falls within that week, the entire week is counted as one full week of FMLA leave. The holiday does not change the calculation.

For example, consider an employee who normally works Monday through Friday. If they take FMLA leave for the entire week in which Memorial Day (a Monday holiday) occurs, they use one full week of their FMLA entitlement. It is not calculated as 4/5ths of a week, even though only four days would typically be worked. This is because the FMLA entitlement is based on workweeks, not individual days.

How Do You Calculate Intermittent FMLA Leave During a Holiday Week?

The calculation changes when an employee takes intermittent leave during a week with a holiday. The key principle from the DOL is that a holiday is not counted as FMLA leave unless the employee was scheduled and expected to work on that holiday and used FMLA leave for it.

In this scenario, the fraction of the workweek used for FMLA is calculated as: Amount of FMLA leave taken (excluding the holiday) / Employee's total workweek (including the holiday)

The DOL provides this rationale: subtracting the holiday from the workweek in the calculation would force the employee to use a larger amount of FMLA leave than necessary, which constitutes an interference with their FMLA rights.

Example Calculation:

• An employee's normal schedule is Monday-Friday, 8 hours per day (a 40-hour workweek).
• Thanksgiving Thursday is a paid holiday, and the company is closed on Friday.
• The employee needs to take intermittent FMLA leave on Tuesday and Wednesday of that week.
• Calculation: The employee takes 16 hours of FMLA leave (Tuesday and Wednesday). The holiday and the day the company is closed are not counted as FMLA leave. The total workweek remains 40 hours.
• FMLA Leave Used: 16 hours of leave / 40-hour workweek = 0.4 (or 40%) of one week of FMLA entitlement.

What Practical Steps Should Employers Take?

Accurate FMLA tracking is critical for compliance. Based on our assessment experience, employers should:

• Define the 12-Month Period: Clearly state which FMLA year method is used (e.g., calendar year, rolling backward).
• Document the Workweek: precisely define an employee's normal schedule, especially for variable-hour employees.
• Review Policies: Update FMLA policies and manager training materials to reflect this DOL guidance on holiday calculations.
• Use Reliable Tracking Systems: Implement a system that can handle pro-rata calculations for intermittent leave, including weeks with holidays.

The core takeaway is that holidays are only relevant for FMLA calculations when an employee is taking intermittent leave. For a full week of FMLA, a holiday within that week does not reduce the leave charged. For partial weeks, the holiday is excluded from the calculation to protect the employee's full 12-week entitlement. Adhering to these rules prevents interference with employee rights and ensures consistent, legally compliant leave administration.