Is Labor Day a federal holiday? All to know

Labor Day, observed each year on the first Monday of September, serves as a nod to American workers’ enduring legacy and a gateway to the final days of summer. This moment marks a pause across federal institutions, private sector operations, and communities alike. Yet it’s not merely a pause but an acknowledgment of labor’s central role in the nation’s narrative. 

While many people associate the event with barbecues, parades and retail sales, the federal recognition behind it has legal and practical implications.  Understanding the state of Labor Day helps clear what's closed, what remains open and what everyone should keep in mind as the holiday progresses.

A look at the history, meaning, and federal recognition of Labor Day in the United States

Labor Day is a federal holiday during which federal employees are given the day off and many government services are suspended.  Established by a congressional legislation in 1894 and signed into law by President Grover Cleveland, it has been a statutory observance ever since. The US Office of Personnel Management certifies that on Monday, September 1, 2025, all agencies and non-essential government functions will be closed, although federal employees will be compensated as usual.

Beyond civil service, many private institutions align with this observance. The United States Postal Service suspends mail service and federal and state courts are closed.  Major banks, including Chase, Bank of America, Wells Fargo, and others halt in-person operations, although ATMs and online banking continue to operate. Logistics and shipping are similarly affected as USPS halts major operations while FedEx and UPS significantly reduce capacity.

Schools generally follow local district calendars, and many districts remain closed for the long weekend. Although retail outlets mostly stay open with some exceptions like Costco, which often closes.

The holiday has deep roots reaching back to the late 19th century when labor unions advocated for a dedicated day to honor workers. The first parade took place in New York City in 1882 and states swiftly followed with official recognition. By 1894 Congress made it official for the entire country. Even today Labor Day remains one of the 11 federal holidays mandated by law.

In practice, the federal status of Labor Day influences daily life: from bank transactions delayed until the following day, to disrupted mail services, and altered travel plans. Whether you're expecting a package, planning to visit a government office, or just enjoying a day off knowing how Labor Day is designated helps everyone prepare appropriately.