As you may remember, Juneteenth became a federal holiday in the United States in 2021, giving federal employees an additional day off, and costing taxpayers an estimated $818 million for the day. Being the first new federal holiday since 1983, the speed at which this new holiday came to be was unexpected. Is your company prepared for the upcoming Juneteenth federal holiday this year? This new holiday will directly affect your current contracts.
Since the day is always on June 19th, this floating holiday may fall on non-workdays, but do you have to provide an extra day off on the Friday before or the Monday after? Do you know which states consider it a paid holiday and which don’t?
The majority of contracts have their fringe rate based on ten federal holidays. Another day off means fringe rates will rise and billable hours will fall, causing your profitability to take a hit for the life of a contract. You need to take this new holiday into consideration for all future proposals and find ways to offset the cost of this day.
Keeping a close eye on the fine print of your contracts could be the difference between a DOL audit or continuing to run a successful business. Partnering with an experienced company that you can trust is imperative to control your costs.
Please use our LinkedIn page and website as a resource, or give us a call to see how we can help you mAXIMize your profitability.