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Labor Day 2025: What’s Closed, What’s Open, and How Holiday Pay Works

OPM confirms public closures, with extra pay in the private sector governed by overtime rules rather than the holiday.

Overview

  • Labor Day falls on Monday, September 1, 2025, as a federally recognized holiday observed nationwide.
  • Federal, state and many local government offices are closed, including libraries, DMVs and most schools, and USPS delivery units suspend service.
  • Banks do not offer in-branch service, and private carriers such as FedEx and, in many cases, UPS reduce or halt normal deliveries.
  • Costco closes all stores, while most major retailers and restaurant chains remain open, often with limited hours and traditional Labor Day sales focused on home goods and appliances.
  • Under the FLSA, private employers are not required to provide paid holiday leave or premium holiday pay; overtime at 1.5 times pay applies only after 40 hours in a week, and most federal employees receive a paid day off with possible additional compensation if required to work.