The Hidden Cost of Celebration

Millions of Americans are still working on Labor Day—while the nation celebrates them with barbecues, sales, and social media posts. This irony lies at the heart of a national paradox: Labor Day was created to honor workers, but often excludes them from the celebration.

At Solve HR, we’ve spent years helping companies strike a balance between operational demands and ethical people management. Labor Day brings that conversation into sharp focus, offering an opportunity to question not only how we manage holidays, but how we value labor itself. The questions people search—Do people work on Labor Day? Does everyone get Labor Day off? Is it against the law to work on Labor Day?—reflects more than curiosity. They reflect a deeper uncertainty about fairness, culture, and what it really means to respect employees in today’s workforce.

According to the U.S. Bureau of Labor Statistics (2024), 79% of private‑sector employees receive paid holidays, while 77% have access to paid vacation. However, paid-leave benefits are significantly skewed—higher‑wage workers are much more likely to receive leave than lower-wage employees.

Let’s get something clear up front: there is no law against working on Labor Day. In the United States, Labor Day is a federal holiday, which means government offices and many public institutions shut down. However, private employers are not required to offer the day off, nor are they obligated to pay time-and-a-half unless state law or an employment contract says otherwise. So yes, people work on Labor Day. A lot of people. From healthcare professionals and delivery drivers to grocery clerks and restaurant servers, the American economy doesn’t exactly pause for reflection.

This leads us to an uncomfortable question: If Labor Day was created to celebrate the dignity of work and honor workers’ contributions to society, how did it become just another workday for so many? The first Labor Day parade, held in 1882 by the Central Labor Union of New York, wasn’t just a festive gathering—it was a demonstration. Tens of thousands of workers took to the streets demanding better hours, safer conditions, and fair pay. That demonstration eventually gave rise to a national holiday, one that was supposed to remind us of the hard-fought victories of labor unions and the importance of valuing the worker. Yet today, many of the people who would have marched in that parade are still working on the holiday meant to honor their efforts.

Some argue that Labor Day is inherently patriotic because it celebrates the people who make the country function. And that’s true—Labor Day is patriotic, but not in the flag-waving, anthem-singing kind of way. It’s patriotic in the sense that it reflects American ideals of fairness, progress, and community. But patriotism without equity is hollow. If we continue to expect retail employees, delivery workers, janitorial staff, and emergency responders to sacrifice their holidays without meaningful compensation or acknowledgment, then we aren’t honoring labor—we’re exploiting it.

At Solve HR, we work with companies to bridge that gap between business necessity and employee respect. We often help leadership teams audit their holiday policies and ask tough questions: Are our employees fairly compensated for working on holidays? Are we transparent about expectations? Are we offering alternative time off? Are we taking their needs seriously, or just operating on autopilot? These aren’t just questions of compliance—they’re questions of culture.

The reality is that not everyone gets Labor Day off, and the reasons why often come down to systemic gaps in policy. According to the Bureau of Labor Statistics, only about 77% of private-sector workers receive paid holidays. Among lower-wage workers, that number drops dramatically. Meanwhile, workers protected by union contracts typically receive better holiday benefits, which underscores the continued relevance of organized labor today. Yet unions are often viewed as relics of the past—despite the fact that it was the labor movement that gave us weekends, workplace safety regulations, and Labor Day itself.

This isn't just a matter of ethics. Businesses that ignore employee sentiment around holidays like Labor Day risk more than bad optics—they risk disengagement, turnover, and reputational harm. Imagine being a part-time worker at a retail chain that runs a Labor Day sale, working a 10-hour shift without holiday pay, while your corporate office is closed for the day. The message that sends is clear: Some labor matters more than others. And that’s a message no employer should want to send.

Working on Labor Day: irony or opportunity?

The irony here is that working on Labor Day could be an opportunity to do better. Companies can and should use this holiday as a moment to reflect on how they treat their workforce, particularly those at the bottom of the pay scale or in less visible roles. Do you have clear policies that recognize the sacrifice of working during a national holiday? Are you offering flexibility, like time off in lieu? Do your payroll and benefits systems ensure accuracy in how holiday work is tracked and paid?

That’s where Solve HR becomes not just a partner, but a strategic ally. We help organizations evaluate everything from payroll , holiday compensation practices and cultural alignment. We ensure that your HR policies are not only legally compliant but ethically sound and values-driven. We believe that your holiday policy says a lot about who you are as an employer—and we make sure that message is one you can be proud of.

So as you prepare for this year’s Labor Day—whether you’re planning a marketing campaign, approving schedules, or simply hoping for a day off—take a moment to ask yourself: Are we truly honoring our workforce? Or are we simply going through the motions of a holiday that has lost its meaning? The answers won’t be the same for every company, and that’s okay. But the conversation is one worth having. And it starts with recognizing that Labor Day should mean more than a sale—it should mean respect.

Whether you're wondering “Do people work on Labor Day?” or reviewing your own policies—Solve HR helps you build ethical, compliant, and retention-friendly HR strategies.

👉 Ready to ensure your team feels valued—even on federal holidays? Let’s talk.

Are you working on Labor Day and wondering if your company’s policies reflect real appreciation—or just tradition?