TimeClick - Labor Day 2021 - Construction Worker and Businesswoman

Labor Day 2021: Observation, Holiday Time, and More

Labor Day 2021 is just around the corner. On September 6, Monday, the United States will observe Labor Day to honor the work and contribution of all workers towards the betterment of our country.

When is Labor Day Observed?

Labor Day is observed each year on the first Monday of September. Thus, the term Labor Day is often accompanied by “Labor Day weekend”. Because Labor Day is always on a Monday, the weekend is extra long.

This year of 2021 Labor Day will be observed on September 6th.

Is Labor Day Federally Observed or State Observed?

In 2021, Labor Day is federally observed. As such, most employers observe Labor Day by offering the day off. Government, public, and private companies alike practice this.

For about 40 years, Labor Day was only observed for federal employees. 1930s unions encouraged workers – no matter their employer – to strike for the day off. Now, nearly all employers observe Labor Day each year.

Am I Required to Give My Employees Labor Day Off?

You don’t have to observe Labor Day, and you don’t have to give your employees the day off. Just make the decision based on your unique business industry and needs. Generally speaking, taking the day off is common for most workers.

Many companies, particularly restaurants, retail shops, and general stores stay open on Labor Day. Of course, you’ll even see government employees working, too, like policemen, firemen, emergency services, and even state park officials (like at marinas).

Am I Required to Pay Holiday Time?

Paying your staff for time not worked (holiday time in this situation) is not required. According to the Fair Labor Standards Act (FLSA), you’re not required to pay “for time not worked, such as vacations or holidays (federal or otherwise).”

Consider offering paid leave to your full-time staff on federal holidays. In the United States, this has become standard practice for most employers. The workforce today highly values the benefit of paid time off, no matter the kind.

When did Labor Day become a Holiday?


The idea of Labor Day as a public holiday grew in popularity in the late 19th century. Oregon was the first state to officially observe Labor Day. By the time it was federally observed, nearly 30 other states were practicing it.

Labor Day also unofficially marks the end of the summer season, as around this same time school and sports begin.

Common Labor Day Activities


Common Labor Day activities often include hiking, boating, football, or watching/playing of other sports.

Similar to Independence Day and fitting with the end of Summer, families and friends also often enjoy grilling burgers, or a nice barbeque with end-of-summer watermelon and drinks.

How to Track Holiday Time With TimeClick

If you are offering paid time off to your employees on Labor Day, make sure to put that holiday time in in advance. Luckily, it’s incredibly quick and easy to track all types of paid time off with TimeClick.

All you need to do is first make sure you have a “holiday” time action in the software. You can check by going to Administration Options > Preferences > Time Actions. If you don’t see Holiday in the list, just create a new custom time action and name it “Holiday.”

Then you can navigate to the Modify Times tab within Admin Options and click on “Add Mass Entry”. From there, choose the date and select “Choose Other Action”. With the dropdown menu, click on Holiday and choose the amount of time you want to give to your employees. Then leave a comment if you want and select “Create.”

Now your employees have holiday time! To double check your work, run a report and check out your employees’ times.

Grant Esser

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