Holiday PTO Requests Are Coming — Is Your Business Ready?

It happens every year. Halloween decorations are barely down, and suddenly three people on the same team want the Wednesday before Thanksgiving off. Then someone asks about the week between Christmas and New Year's. Someone else mentions they've already booked their flights.

And suddenly you're trying to solve a staffing puzzle with the pieces already glued down.

Holiday PTO requests don't have to turn into a scramble. Most of the stress comes from expectations that were never clearly established or were set so long ago that no one remembers them.

That's why now is the time to talk about holiday time off, while employees still have time to make plans and employers have time to prepare for staffing needs.

Remind Employees How Holiday Time Off Works

Don't assume employees remember how holiday requests were handled last year, or that new hires know the process at all.

Before the requests start rolling in, send a clear reminder that covers:

• How requests are approved. Is it first come, first served? Rotating by year? Based on seniority? Whatever your approach, communicate it clearly.

• When requests are due. Set specific deadlines for Thanksgiving week and the end-of-year holidays so you're not sorting through requests in mid-December.

• Coverage requirements. If only a certain number of people per team, shift, or location can be out at once, explain that upfront.

• Blackout dates. If there are days when time off generally won't be approved, employees should know before they make plans.

• When employees will hear back. Nobody wants to wait three weeks to find out whether they can visit family for Christmas.
  

And don't overcomplicate things.

It can be as simple as:

"The holidays are coming up fast! Please submit PTO requests for Thanksgiving week and the end of December by [date]. To maintain coverage, we can approve up to [number] employees off at a time per [team/location]. Requests will be approved based on [method], and you'll receive a decision by [date]."

Clear communication now prevents confusion later.

Put Your Holiday PTO Policy in Writing

If your holiday time-off approach lives entirely in a manager's head, now is the time to fix that.

In North Carolina, the Wage and Hour Act requires employers to communicate their vacation and PTO policies to employees through appropriate written or posted notice and follow the policies they establish.

Beyond the legal requirements, a written policy helps prevent one of the most common holiday PTO complaints:

"Why did they get it and I didn't?"

When the rules are written down and applied consistently, the decision is easier to explain, even when it's not the answer an employee wanted.

Be Consistent When Holiday PTO Requests Overlap

Two employees want the same days, but you can only approve one request.

This is where managers can run into trouble. Not necessarily because they made the wrong decision, but because they handled a similar situation differently last time.

Start with your written policy.

If approval is first come, first served, follow that process. If requests rotate by year, review who received priority last year. And when you have to say no, offer an alternative when possible.

For example:

"I know you were hoping for that week. We received another request first, and we can only have [number] employees out at one time. I can approve [alternative dates], or we can look at a partial week. What would work best for you?"

A "no" with options feels very different from a "no" with nothing else.

Consistency matters, but so does how you communicate the decision.

Don't Forget About Religious Observances

Not every employee's most important holidays fall on Thanksgiving or December 25.

Under Title VII, covered employers generally must reasonably accommodate an employee's sincerely held religious beliefs and practices, including requests for time off for religious observances, unless doing so would create an undue hardship under the applicable legal standard.

That doesn't mean every request must automatically be approved. It does mean those requests deserve individual consideration, and managers shouldn't dismiss them simply because the date isn't on the company holiday calendar.

If a manager isn't sure how to handle a religious accommodation request, that's a good time to involve HR.

Know What Your Policy Says About Holiday Pay

Private employers generally aren't required under federal law to provide paid holidays or premium pay simply because an employee works on a holiday.

However, employers need to follow their applicable policies, agreements, and state wage-payment requirements.

If your employee handbook promises holiday pay, time-and-a-half, or an additional day off for working a holiday, review those commitments before finalizing the schedule.

And remember that overtime rules still apply during holiday weeks.

For most non-exempt employees covered by the Fair Labor Standards Act, overtime is based on hours actually worked over 40 in a workweek. Paid holiday hours that aren't worked generally don't count toward that federal overtime threshold.

Make sure your managers and payroll team understand the difference before holiday schedules are finalized.

Remind Employees About Year-End PTO Balances

The end of the year is also when PTO balances suddenly get everyone's attention.

If your policy includes a use-it-or-lose-it provision, carryover limits, or payout requirements, remind employees now and make sure those provisions comply with applicable law.

An employee who finds out in late December that they're about to lose a week of PTO is probably going to want to use it.

And chances are, they'll want the same week everyone else wants off.

Giving employees a heads-up in October can help spread requests across November and December instead of piling everything into the last two weeks of the year.

Holiday PTO Planning Doesn't Have to Be Complicated

You don't need an elaborate approval system or a spreadsheet that only one person understands.

You need employees to know:

• How do I request time off?

• When is the deadline?

• How many people can be out?

• How will decisions be made?

• When will I find out?
  

Answer those questions now and apply the process consistently. Setting expectations early makes it much easier to manage holiday PTO requests without creating unnecessary frustration for employees or managers.

Need help getting your holiday time-off policies ready?

Employers Advantage LLC helps businesses develop and update PTO and holiday policies, align employee handbooks with actual workplace practices, and prepare managers to handle competing requests fairly and consistently.

Because the holidays should be something your team looks forward to, not a staffing crisis everyone dreads. BELOW ARE SOME FREQUENTLY ASKED AND SEARCHED QUESTIONS FOR YOU AS A RESOURCE: How should employers handle overlapping holiday PTO requests?

Employers should follow a clearly communicated, consistent approval process. Depending on company policy, requests may be evaluated by submission date, seniority, rotation, or staffing requirements. Managers should explain decisions and offer alternative dates when possible.

Can an employer deny a holiday PTO request?

Generally, employers can deny ordinary vacation requests based on legitimate staffing needs and applicable company policies. However, requests involving protected leave or religious accommodations may require additional legal consideration.

Are employers required to pay employees for holidays?

Federal law generally does not require private employers to provide paid holidays. However, employers must comply with applicable state laws, employment agreements, and their established holiday pay policies.

Do paid holidays count toward overtime?

Under federal law, overtime for covered non-exempt employees is generally calculated using hours actually worked over 40 in a workweek. Paid holiday hours that were not worked typically do not count toward that threshold.

Can an employee request time off for a religious holiday?

Yes. Covered employers must consider reasonable accommodations for sincerely held religious practices unless providing an accommodation would impose an undue hardship under the applicable legal standard.

How can Employers Advantage LLC help with holiday PTO planning?

Employers Advantage LLC helps businesses create and update PTO policies, clarify holiday scheduling procedures, align employee handbooks with workplace practices, and guide managers through competing time-off requests.