Do I pay overtime if someone works on July 4th?

No. There is no federal law requiring overtime or premium pay simply because an employee works on July 4th or any other holiday. 

The FLSA requires overtime at 1.5x only when a non-exempt employee works more than 40 hours in the workweek. Holiday pay, double-time, and time-and-a-half for holidays are employer policy decisions, with two state exceptions.

When overtime does apply on a holiday

Overtime is triggered by total weekly hours worked, not the day worked. When a non-exempt employee has already worked 40 hours by Thursday and then works July 4 (Friday), those holiday hours are overtime at 1.5x.

Paid holiday hours when the employee is off do not count toward the 40-hour threshold. Example: an employee works Monday to Wednesday (24 hours), gets 8 hours holiday pay for Thursday July 4 (not worked), and works Friday (8 hours). Actual hours worked = 32, so no overtime, even though the paycheck shows 40 hours. Companies that need to handle this scenario usually rely on the DOL Fact Sheet #23.

Two state exceptions

• Rhode Island: Rhode Island law requires time-and-a-half for Independence Day plus nine other holidays (mostly federal holidays) for most retail and some other workers. Exemptions include doctors, lawyers, supervisors, and hotel or restaurant employees. Updated regulations took effect August 2025.
• Massachusetts: eliminated its holiday premium pay requirement on January 1, 2023. There is still no penalty for employees who don't work on holidays, but they are not owed any extra pay.

No other state requires holiday premium pay for private-sector employees.

The voluntary premium pay trap

When the company chooses to pay double-time or time-and-a-half for July 4, the overtime math needs care. Voluntary holiday premiums generally must be included in the FLSA "regular rate" for overtime calculations, unless they qualify for exclusion under Regular Rate requirements (premium at least 1.5x the normal rate, set in a bona fide employment contract or CBA). When the premium doesn't qualify, the weekly blended regular rate goes up, and any overtime is based on the higher rate.

Disclaimer:

This article informs. It does not advise on the law. State overtime laws vary.

TL;DR

• No federal law requires overtime or premium pay for July 4, and overtime is triggered only when total hours worked exceed 40 for the week.
• Paid holiday hours (not worked) do not count toward the 40-hour threshold. RI requires time-and-a-half for holidays, while MA eliminated its premium in 2023.
• When voluntary holiday premium is paid, check whether it must be included in the overtime regular rate.