When your American employee mentions “taking the whole week off for Thanksgiving,” do you know whether this is a reasonable request or an excessive demand? For international companies expanding to the United States, understanding Thanksgiving business closure expectations isn’t optional—it’s essential for maintaining team morale, managing productivity, and demonstrating cultural fluency in the American market.
Unlike many international holidays that simply mark a calendar date, Thanksgiving represents a complex cultural ecosystem that dramatically impacts American workplace dynamics. The holiday falls on the fourth Thursday of November each year—November 27 in 2025—but its influence extends far beyond a single day. Understanding how to navigate business closure decisions during this period becomes crucial for international employers seeking to build strong, productive relationships with their US teams.
As experts in facilitating smooth transitions for global companies into the US market, Foothold America has guided hundreds of international businesses through the intricacies of American workplace culture. This comprehensive guide reveals the realities of Thanksgiving business closures, from legal requirements to cultural expectations, providing practical frameworks for international companies establishing their US operations.
The Legal Reality: What Federal Law Actually Requires
Before exploring cultural expectations, international employers need to understand a fundamental legal reality: private employers in the United States face zero federal requirement to provide Thanksgiving as a paid holiday or to close their businesses on this day.
While Thanksgiving stands as one of eleven federal holidays recognized by the United States government, this designation applies only to federal government employees and offices. According to the Bureau of Labor Statistics, approximately 77% of civilian workers receive paid holidays from their employers, with an average of eight paid holidays per year. However, this represents employer choice rather than legal mandate.
The Fair Labor Standards Act (FLSA), which governs workplace practices including minimum wage and overtime requirements, does not require businesses to provide federal holidays as days off to staff. This absence of federal mandate means American workplace culture around Thanksgiving closures has evolved through market forces, industry standards, and competitive talent acquisition strategies rather than legislative requirements.
Key Legal Considerations for International Employers
No Mandatory Closure Requirements: Unlike some European countries where specific holidays require business closures, US private employers maintain complete discretion over Thanksgiving operations. You can legally remain open and require employees to work.
No Premium Pay Mandates: Federal law does not require employers to pay premium rates (time-and-a-half or double-time) for employees who work on Thanksgiving unless that work exceeds 40 hours in the workweek, triggering standard overtime requirements under the FLSA.
State-Level Variations: Some states impose additional requirements for certain industries. Rhode Island, for example, requires premium pay for retail workers on Thanksgiving and other specific holidays. International employers operating across multiple states should review state-specific requirements.
Religious Accommodation: While Thanksgiving itself is secular, Title VII of the Civil Rights Act requires employers to reasonably accommodate employees’ religious practices. This becomes relevant when Thanksgiving conflicts with religious observances or when employees request alternative holidays for religious reasons.
For international companies navigating the complex landscape of US employment law and compliance, understanding these legal baselines provides essential context for developing Thanksgiving closure policies that balance legal obligations with competitive market practices.
The Cultural Reality: What American Employees Actually Expect
While federal law provides minimal guidance, American cultural expectations tell a dramatically different story. According to Indeed’s research on federal holidays, Thanksgiving ranks as the most commonly observed paid holiday in American business, with 97% of private industry employees receiving this day off. This near-universal observance reflects Thanksgiving’s unique cultural significance in American society.
The American work calendar operates according to cultural patterns that may seem contradictory to international observers. While Americans often take less vacation time compared to their European counterparts—frequently leaving paid time off unused—Thanksgiving represents a cultural non-negotiable that transcends typical vacation patterns.
Understanding Thanksgiving’s Cultural Weight
Thanksgiving centers on practices—gratitude, family gathering, and reflection—that Americans prioritize above most other cultural observances. The holiday typically involves:
Family Travel: Thanksgiving generates the highest travel volume of any American holiday, with families often traveling hundreds or thousands of miles to gather. The American Automobile Association (AAA) consistently reports Thanksgiving as the busiest travel period of the year.
Multi-Day Celebrations: While Thanksgiving falls on Thursday, the cultural celebration extends to a multi-day event. Many families begin gathering on Wednesday evening and continue celebrations through Sunday, creating an extended period of reduced availability and engagement.
Cultural Traditions: The Thanksgiving meal, typically featuring turkey, stuffing, and traditional sides, represents more than food—it embodies American cultural identity. Missing Thanksgiving dinner with family carries social and emotional weight that differs from simply missing a day off work.
Generational Expectations: Unlike emerging holidays or newer cultural practices, Thanksgiving observance spans generations. American employees grew up expecting Thanksgiving off, and this expectation reflects deeply ingrained cultural patterns rather than modern workplace trends.
For international employers, this cultural context means that policies around Thanksgiving closures significantly impact employee satisfaction, retention, and your company’s reputation in the American talent market. Understanding American business etiquette around holidays becomes essential for building productive workplace relationships.
Industry-Specific Closure Patterns
Thanksgiving closure patterns vary dramatically across industries, creating different expectations for employers and employees depending on sector:
Nearly Universal Closure Industries
Financial Services: Banks, investment firms, and related financial institutions observe all federal holidays, including Thanksgiving. This reflects both regulatory alignment with federal schedules and industry-wide standards. The New York Stock Exchange closes for Thanksgiving, setting the standard for financial services closure.
Professional Services: Law firms, consulting companies, accounting practices, and similar professional services typically close for Thanksgiving and the following Friday, creating a four-day weekend. This reflects competitive talent practices in high-salary, high-demand professions.
Technology Companies: Tech firms typically observe Thanksgiving as a company-wide closure, with many also providing Black Friday off. This reflects the industry’s emphasis on work-life balance as a competitive differentiator in talent acquisition.
Manufacturing (Non-Essential): Manufacturing facilities producing non-essential goods typically shut down for Thanksgiving, using the period for scheduled maintenance. This reflects both cultural expectations and operational efficiency considerations.
Partial or Modified Operations Industries
Healthcare: Hospitals, emergency services, and essential healthcare facilities maintain operations but typically operate with reduced staff on voluntary or rotating schedules. Staff working holidays often receive premium pay as an internal company policy, even though not federally mandated.
Hospitality and Food Service: Restaurants, hotels, and related services face complex dynamics. Many close for Thanksgiving to allow employees family time, while others remain open to serve customers who dine out for Thanksgiving dinner. Operations that remain open typically pay premium wages and rely on volunteer staffing.
Retail: Retail represents the most controversial sector for Thanksgiving operations. Historically, retail stores closed on Thanksgiving, then began opening for Black Friday sales. Over the past decade, many retailers opened on Thanksgiving Day itself, generating significant employee and public backlash. Recent years have seen a reversal, with major retailers including Walmart, Target, and Best Buy returning to Thanksgiving closures.
Transportation and Logistics: Airlines, public transportation, and shipping companies maintain operations but often on reduced schedules. Staffing typically involves voluntary scheduling or rotating holiday coverage.
Always-On Industries
Emergency Services: Police, fire departments, emergency medical services, and related essential services maintain full operations. These sectors have established cultural expectations around rotating holiday coverage and premium compensation.
Utilities: Electric, water, and other utility companies maintain essential operations with reduced staff on rotating schedules.
Security Services: Security and surveillance operations continue as necessary, typically with rotating holiday coverage and premium compensation.
For international companies entering the American market, understanding these industry-specific patterns helps benchmark your Thanksgiving policy against competitive standards. Companies can reference US employment cost considerations when evaluating the financial impact of closure decisions.
The Black Friday Factor: Understanding the Four-Day Weekend
International employers must understand that Thanksgiving closure decisions rarely involve just Thursday—they require strategic thinking about the entire Thursday-through-Sunday period, with particular focus on Black Friday.
What Is Black Friday?
Black Friday refers to the Friday immediately following Thanksgiving, traditionally marking the beginning of the American Christmas shopping season. The day earned its name from retailers moving from financial “red” (losses) to “black” (profits) due to heavy shopping traffic. While not a federal holiday, Black Friday has evolved into a cultural phenomenon that significantly impacts workplace expectations.
According to the National Retail Federation, Black Friday generates substantial economic activity, with 2024 seeing approximately 200 million Americans shopping over the Thanksgiving weekend, generating billions in retail sales. This economic impact creates complex dynamics for employers across industries.
Black Friday Closure Patterns by Industry
Retail Sector: Retail businesses face the most complex Black Friday decisions. The day represents their highest revenue opportunity of the year, requiring full staffing. However, opening requires asking employees to work the day after Thanksgiving, significantly reducing their holiday time with family.
Many retailers address this by offering premium pay (150-200% of regular wages), flexible scheduling, and generous employee discounts. Some retailers close on Thanksgiving Day but require all-hands-on-deck for Black Friday. Others stagger shifts to balance business needs with employee accommodation.
Non-Retail Sectors: Most non-retail businesses have adopted Black Friday as an unofficial extension of Thanksgiving, creating a four-day weekend. This practice reflects several factors:
- Reduced business activity due to retail focus and consumer distraction
- High employee absence rates as staff take the day as vacation
- Competitive talent practices that view extended Thanksgiving weekends as standard benefits
- Minimal productivity impact since many business operations slow dramatically
Hybrid Approaches: Some companies remain officially “open” on Black Friday but operate with skeleton crews, allowing most employees the day off while maintaining minimal essential functions. This balances operational continuity with cultural accommodation.
The International Coordination Challenge
For international companies with global operations, the four-day American Thanksgiving weekend creates coordination challenges. While American teams disconnect, business continues in other regions. Successful international employers address this through strategic planning:
Advanced Communication: Notify global teams about American Thanksgiving schedules as early as September, allowing time for project planning and coordination adjustments.
Coverage Planning: Identify which business functions require American participation and which can be handled by other global offices during the Thanksgiving period. Document coverage plans and emergency contacts.
Rotating Availability: For truly essential functions, consider rotating minimal on-call coverage among American team members, ensuring no single employee loses their entire holiday while maintaining necessary business continuity.
Companies managing US expansion from international locations often find that transparent communication about Thanksgiving expectations—both with American teams and global colleagues—prevents misunderstandings and maintains productive international collaboration.
Strategic Closure Decision Framework
Developing an effective Thanksgiving closure strategy requires balancing multiple factors: legal requirements, cultural expectations, industry standards, operational necessities, and competitive talent practices. International employers should approach this decision systematically rather than reactively.
Step 1: Industry and Competitive Benchmarking
Begin by researching how competitors and similar companies in your industry handle Thanksgiving closures. Review job postings from competitors—many explicitly mention holiday policies in benefits descriptions. Consult with HR professionals in your industry about standard practices. Consider joining industry associations that share HR benchmarking data.
The US pay transparency movement has made compensation and benefits information more accessible. Use this transparency to understand market standards for Thanksgiving benefits in your industry and region.
Step 2: Operational Assessment
Evaluate your business’s operational requirements during Thanksgiving week:
Customer-Facing Operations: Do your customers expect availability during Thanksgiving? B2B companies often find that customers also close, reducing the need for coverage. B2C companies face different dynamics depending on industry.
Production Deadlines: Can work be front-loaded before Thanksgiving or back-loaded after? Many American businesses experience reduced activity during Thanksgiving week, making this period suitable for operational pauses.
Essential Functions: Identify truly essential functions that cannot be paused for four days. Distinguish between “preferred” availability and “essential” operations. Many functions initially categorized as essential prove manageable with proper planning.
Global Coordination: Assess how American team closures impact global operations. Can other regions provide coverage? Do time zones and skill sets allow for effective handoffs?
Step 3: Cost-Benefit Analysis
Quantify the financial implications of different closure scenarios:
Closure Costs: Calculate lost revenue or productivity from closing during Thanksgiving. Consider whether work can be made up before or after the closure period, potentially minimizing net impact.
Operating Costs: For companies that remain open, calculate premium pay costs if offering enhanced compensation, increased utility and overhead costs for maintaining facilities, and supervision costs if skeleton crews require management presence.
Talent Costs: Research indicates that generous holiday policies significantly impact talent acquisition and retention. Calculate the cost savings from:
- Reduced turnover rates when offering competitive holiday benefits
- Decreased recruitment costs from stronger employer brand
- Higher offer acceptance rates from attractive total compensation packages
The real cost of hiring US employees extends beyond salary to encompass total compensation, including holiday benefits that influence retention and recruitment success.
Step 4: Employee Input and Communication
Before finalizing Thanksgiving policies, gather employee input through anonymous surveys about Thanksgiving closure preferences and holiday priorities, or informal conversations with team members about their expectations and family obligations.
Once you’ve decided your approach, communicate clearly and early. Announce Thanksgiving closure plans no later than September, giving employees time for travel planning. Explain the reasoning behind your decision, whether closing, remaining open, or offering flexible options. Be transparent about how closure decisions align with business realities and competitive practices.
For international companies building US teams, this communication demonstrates cultural intelligence that strengthens employee relationships. Understanding US business jargon and communication norms helps international employers navigate these conversations effectively.
Implementation Models: Four Practical Approaches
Based on extensive experience helping international companies navigate American workplace culture, Foothold America identifies four primary implementation models for Thanksgiving closure policies.
Model 1: Full Four-Day Closure (Thursday-Sunday)
Description: Close business entirely from Thanksgiving Thursday through the weekend, reopening Monday. Provide paid time off for Thursday and Friday, with Saturday-Sunday falling on normal weekend days.
Best For:
- Professional services firms
- Technology companies
- Businesses with minimal customer-facing operations during Thanksgiving week
- Companies prioritizing employee satisfaction and work-life balance
Advantages:
- Maximum employee satisfaction and family accommodation
- Simplified planning with clear expectations
- Competitive advantage in talent acquisition
- Reduced operational costs during low-activity period
Challenges:
- Four-day closure may concern stakeholders worried about productivity
- Requires advance planning for customer communication
- May create coverage gaps for truly essential functions
Implementation Tips: Communicate closure to customers by October 1, providing alternative resources or emergency contacts. Front-load critical work in the weeks before Thanksgiving. Establish emergency protocols for true business emergencies, with rotating on-call coverage if absolutely necessary.
Model 2: Thursday-Only Closure with Optional Friday
Description: Close for Thanksgiving Thursday as paid holiday. Officially remain open Friday but allow employees to use vacation/PTO for Black Friday, accommodating most or all requests.
Best For:
- Companies transitioning toward more generous policies
- Businesses with occasional Friday operational needs
- Organizations balancing cultural accommodation with operational flexibility
Advantages:
- Balances employee accommodation with operational flexibility
- Maintains official availability for rare urgent needs
- Shows progression toward more generous policies over time
Challenges:
- May create resentment if some employees work Friday while others have off
- Can lead to inadequate staffing if most employees take Friday off
- Appears less generous than full closure policies
Implementation Tips: Set clear expectations that Friday PTO requests will be generously approved. Identify and communicate essential functions requiring Friday coverage. Consider rotating Friday coverage year-over-year if needed. Provide advance notice of coverage expectations.
Model 3: Flexible Closure with Core Team Rotation
Description: Close for most employees from Thursday-Friday. Maintain minimal operations with rotating coverage teams who volunteer for premium pay (150-200% of regular wages).
Best For:
- Healthcare and essential services
- Companies with truly necessary Thanksgiving operations
- Businesses serving customers who expect holiday availability
Advantages:
- Accommodates most employees while maintaining essential operations
- Premium pay incentivizes volunteer coverage
- Distributes holiday coverage burden across team
- Maintains customer service continuity
Challenges:
- Requires careful scheduling and volunteer coordination
- Premium pay increases operational costs
- May still disappoint employees who volunteer but prefer time off
Implementation Tips: Recruit volunteer coverage before scheduling assignments. Rotate holiday coverage year-over-year for fairness. Offer premium pay or compensatory time off (for example, work Thanksgiving, take Tuesday-Wednesday before Christmas off). Ensure coverage volunteers receive clear appreciation and recognition.
Model 4: Industry-Specific Closure (Retail/Hospitality)
Description: Tailor closure policies to industry-specific patterns. Retail and hospitality businesses often close Thanksgiving Thursday but operate (with all-hands expectations) on Black Friday.
Best For:
- Retail businesses where Black Friday represents critical revenue
- Restaurants and hospitality venues serving holiday customers
- Industries with established seasonal patterns
Advantages:
- Aligns with industry norms and customer expectations
- Maximizes revenue during critical shopping period
- Provides some holiday accommodation with Thursday closure
Challenges:
- Employees work day after Thanksgiving, reducing holiday enjoyment
- May create recruitment challenges as competitors offer longer holidays
- Requires full staffing during high-stress period
Implementation Tips: Offer premium pay for Black Friday work (even if not legally required). Provide generous employee discounts or other perks specific to your industry. Consider scheduling flexibility (late start Friday after Thursday gathering). Communicate Black Friday expectations during hiring process. Celebrate and appreciate staff working the holiday period.
For international companies navigating these decisions, partnering with experts who understand American workplace culture can provide invaluable guidance in selecting and implementing the model that best serves your business needs and competitive positioning.
Financial Considerations and ROI
International employers understandably question the financial impact of generous Thanksgiving closure policies. However, viewing holiday closures purely as cost overlooks the significant return on investment from competitive holiday benefits.
Direct Costs of Thanksgiving Closure
Paid Holiday Costs: Providing Thursday and Friday as paid holidays means paying for approximately 1.5% of annual work days (2 of approximately 260 annual workdays). For an employee earning $75,000 annually, this represents approximately $575 in direct costs.
Lost Productivity: If work cannot be rescheduled, businesses lose four days of productivity. However, research consistently shows that American business activity slows dramatically during Thanksgiving week, potentially minimizing actual productivity loss.
Operational Overhead: Facilities remaining open incur utility, security, and maintenance costs without corresponding productivity. Closing may reduce these expenses.
Return on Investment from Competitive Holiday Policies
Reduced Turnover: The Society for Human Resource Management estimates that replacing an employee costs 6-9 months of that employee’s salary. For a $75,000 employee, replacement costs range from $37,500 to $56,250. If generous holiday policies reduce turnover by even one employee every few years, the ROI dramatically exceeds holiday costs.
Enhanced Recruitment: Competitive holiday benefits improve offer acceptance rates and reduce time-to-fill for open positions. Faster hiring means reduced productivity gaps and lower recruitment costs. Companies with attractive benefits packages report significantly shorter recruiting cycles.
Productivity Gains: Well-rested employees with adequate time off demonstrate higher productivity, better decision-making, and increased creativity. These benefits extend throughout the year, not just during holiday periods.
Employer Brand Strength: Companies known for respecting work-life balance and cultural accommodation build stronger employer brands. This reputation compounds over time, making future recruiting easier and more cost-effective.
For international companies evaluating US employee benefits costs and trends, holiday policies represent a relatively low-cost benefit with outsized impact on employee satisfaction and retention.
Communication Best Practices
Effective Thanksgiving closure policies require more than good decisions—they demand excellent communication with both American teams and global colleagues.
Communicating with American Employees
Timing: Announce Thanksgiving closure plans no later than September, preferably earlier. Early communication allows employees to book travel and make family plans, demonstrating respect for their personal lives.
Clarity: Specify exact closure dates, coverage expectations, and on-call requirements. Ambiguity creates anxiety and reduces the benefit of time off.
Context: Explain how your Thanksgiving policy compares to industry standards. If offering generous policies, highlight this competitive advantage. If requiring some Thanksgiving work, explain operational necessities and how you’ll minimize impact.
Appreciation: If employees work during Thanksgiving, express genuine appreciation. Recognize the sacrifice of missing family time and demonstrate that their contribution is valued, not taken for granted.
Communicating with Global Teams
International colleagues need different information about American Thanksgiving closures.
Cultural Context: Explain Thanksgiving’s cultural significance to help global colleagues understand why American operations pause. This education prevents resentment and encourages collaborative solutions.
Impact Assessment: Clearly communicate how American closures affect global workflows. Identify which functions continue uninterrupted (handled by other regions) and which may experience delays.
Coverage Plans: Document coverage procedures for urgent matters during American closures. Provide clear escalation paths and emergency contacts.
Advance Planning: Encourage project planning that accounts for American Thanksgiving. Build buffer time into schedules around late November to prevent last-minute crises.
Successful international companies treat cultural education as a two-way street. American teams benefit from understanding global colleagues’ holidays and cultural practices, while global teams gain insight into American cultural patterns. This mutual understanding strengthens international collaboration year-round, not just during Thanksgiving.
Beyond Compliance: Building Cultural Intelligence
Ultimately, Thanksgiving closure decisions transcend mere operational logistics—they represent opportunities for international companies to demonstrate cultural intelligence that strengthens American team relationships and accelerates market success.
American employees recognize when international employers genuinely understand and respect their cultural values versus simply checking compliance boxes. Companies that approach Thanksgiving thoughtfully, communicate clearly, and show genuine appreciation for American traditions build loyalty that extends far beyond holiday periods.
This cultural intelligence development during Thanksgiving season provides valuable insights that inform your broader American market strategy—from understanding US business etiquette to navigating complex employment regulations to building effective cross-cultural communication practices.
For international leaders seeking to deepen their understanding of American workplace dynamics beyond Thanksgiving, Foothold America’s complimentary Cultural Intelligence Advisory session provides personalized guidance on navigating the nuanced cultural expectations that drive success in the US market. This workshop with our cultural intelligence experts helps international executives identify potential cultural blind spots and develop strategies for building stronger, more effective American team relationships.
Strategic Recommendations for International Employers
Based on extensive experience helping international companies navigate American workplace culture, Foothold America offers these strategic recommendations:
Start Competitively: Begin with Thanksgiving policies that meet or slightly exceed industry standards. Starting with generous policies builds goodwill and makes future adjustments less likely to disappoint employees.
Communicate Early and Often: Announce Thanksgiving closure plans by September at the latest. Provide regular updates as the holiday approaches. Over-communication proves far superior to ambiguity.
Consider Progressive Enhancement: If budget or operational concerns prevent immediately generous policies, communicate a plan for progressive improvement. Employees appreciate transparency about business constraints and future enhancement intentions.
Prioritize Black Friday Thoughtfully: Unless your business operates in retail or hospitality with clear Black Friday operational needs, strongly consider closing or making this day optional. The four-day Thanksgiving weekend has become increasingly standard across industries.
Learn from Experience: Treat your first Thanksgiving closure as a learning experience. Gather feedback, assess operational impact, and adjust policies for subsequent years.
Integrate with Overall Benefits Strategy: Thanksgiving policies shouldn’t exist in isolation. Consider how holiday closures integrate with your comprehensive employee benefits package and PTO policies.
Your Path to Thanksgiving Success
Navigating Thanksgiving business closures represents more than an administrative task—it’s an opportunity to demonstrate cultural fluency that accelerates your American market success. International companies that master these cultural dynamics position themselves for sustained success in the world’s largest economy.
At Foothold America, we’ve helped hundreds of international companies navigate the complexities of American workplace culture, from holiday policies to comprehensive employment strategies. Our deep understanding of American cultural expectations, combined with experience across diverse industries and regions, enables us to guide international companies toward sustainable success in the US market.
Whether you’re establishing your first American employees through our Employer of Record Service, managing a growing team via PEO+ Cross-Border Support™, or building comprehensive operations through our People Partnership Service, we provide the cultural intelligence and operational expertise necessary for American market success.
Ready to build Thanksgiving policies that strengthen your American team relationships while supporting business objectives? Contact our expansion experts to discover how Foothold America’s comprehensive services can help you navigate American workplace culture with confidence.
