Most state laws, including those of Texas, do not require employers to observe any holidays or to pay employees if time off for holidays is granted. Texas law does not require employers to pay holiday pay.This guide aims to shed light on the intricacies of holiday pay in Texas, helping employees understand their rights and employers to meet their obligations. Legal Holiday Laws: Federal vs. State. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). The Fair Labor Standards Act doesn't require employers to provide paid holiday leave, award days off, or pay higher rates during the holidays. Day off falls on holiday: paid. Holiday compensation. The Fair Labor Standards Act (FLSA) doesn't legally require employers to offer PTO for federal or other holidays. Per the Fair Labor Standards Act (FLSA), holiday pay is not federally required.