Floating holidays are implemented in different ways by different business. Some businesses require that they coincide with official federal or state holidays. Some determine which days are floating holidays for everyone, which might vary from year to year. Other businesses let employees chose their own floating holidays, which can even be mental health days.

Considerations when creating a floating holiday policy:

  1. Is the policy clear? Make sure employees understand whether usage of floating holidays is flexible or predetermined. Examples may help them. Also, explain whether the time off is paid or unpaid.
  2. Do you have restrictions such as blackout dates (certain months of the year or days of the week)?
  3. If the floating holidays can’t be carried over from one year to the next or cashed out upon termination, remind employees of their remaining time off.
  4. Train managers and supervisors regarding consistent application of the policy, to avoid discrimination claim, especially given that floating holidays can be a way to acknowledge employees’ varied beliefs and backgrounds.