<Li> Birthday of Martin Luther King, Jr . </Li> <Li> Washington's Birthday </Li> <P> In the United States, a federal holiday is an authorized holiday which has been recognized by the US government . Every year on a U.S. federal holiday, non-essential federal government offices are closed, and every federal employee is paid for the holiday . Private - sector employees required to work on a legal holiday may receive holiday pay in addition to their ordinary wages . </P> <P> Federal holidays are designated by the United States Congress in Title V of the United States Code (5 U.S.C. § 6103). Congress has authority to create holidays only for federal institutions (including federally owned properties) and employees, and for the District of Columbia . However, as a general rule other institutions, including banks, post offices, and schools, may be closed on those days . In various parts of the country, state and city holidays may be observed in addition to the federal holidays . </P>

When did new year's become a federal holiday