Does Costco Pay Time and a Half? Employee Holiday Premium Pay
Costco pays time and a half to hourly employees on designated holidays. Learn about Costco's premium pay culture and estimate your holiday earnings.
M. Imtinan Farooq
Data Engineer & Financial Analyst
Yes — Costco pays time and a half (1.5x) to hourly employees who work on seven designated holidays. Costco is widely recognized for strong employee benefits, and its holiday premium pay policy is among the most generous in retail.
Costco is closed on several major holidays (including Easter, Thanksgiving, and Christmas) — meaning most employees do not work those days. For the holidays when Costco is open, hourly employees receive 1.5x pay. This guide covers every Costco time and a half holiday, worked examples, and the distinction between holiday pay and weekly overtime.
Which holidays does Costco pay time and a half?
Costco pays time and a half on these seven holidays. Note that Costco is closed on Easter, Thanksgiving, and Christmas, so holiday premium pay on those days typically applies only to select warehouse or distribution center staff:
| Holiday | Pay Rate | Notes |
|---|---|---|
| New Year's Day | 1.5x | Costco closed; select staff may work at 1.5x |
| Easter Sunday | 1.5x | Costco closed; select staff may work at 1.5x |
| Memorial Day | 1.5x | Costco open; employees receive 1.5x |
| Independence Day (4th of July) | 1.5x | Costco closed; select staff at 1.5x |
| Labor Day | 1.5x | Costco open; employees receive 1.5x |
| Thanksgiving Day | 1.5x | Costco closed; select staff at 1.5x |
| Christmas Day | 1.5x | Costco closed; select staff at 1.5x |
⚠️ Sunday premium pay at Costco
Costco does not pay time and a half for Sunday shifts as a blanket policy. Sunday hours are paid at the standard base rate unless the Sunday falls on a designated holiday (e.g., Easter). Some employees searching for "Costco time and a half Sunday" may be confusing Sunday premium pay from other retailers with Costco policy.
Costco's premium pay culture
Costco is known for its industry-leading wages (starting well above federal minimum wage), frequent wage step increases, and consistent premium pay for holidays. The company's philosophy of treating employees well has resulted in the lowest turnover in the retail industry. Holiday premium pay at 1.5x is part of this approach, along with:
- Health insurance for both full-time and part-time employees
- 401(k) matching
- Paid time off and sick leave
- Annual wage increases based on hours worked
Costco's holiday premium pay is a company benefit, not a legal requirement. Federal law does not require any employer to pay extra for holiday work.
Worked example: Costco employee at $20.00/hr on Memorial Day
Estimate your Costco holiday pay
Use the time and a half calculator to estimate your pay for any upcoming Costco holiday shift.
See also: Target · Starbucks · H-E-B · Amazon · Walmart · Memorial Day · Labor Day · 4th of July · Thanksgiving · Christmas
Frequently asked questions
Does Costco pay time and a half on holidays?
Yes — Costco pays hourly employees time and a half (1.5x) on seven holidays. Costco is closed on several of these, so premium pay typically applies to select warehouse or distribution staff.
Does Costco pay time and a half on Sundays?
No — Costco does not pay a blanket Sunday premium. Sunday shifts are paid at the standard base rate unless the Sunday is a designated holiday.
How much is Costco time and a half?
Costco time and a half is 1.5x your base hourly rate. For example, if you earn $25.00/hr, your holiday rate is $37.50/hr.
Disclaimer: Costco policies may change. Verify with your warehouse manager or HR.
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Official Labor & Wage Sources
- •U.S. Department of Labor — Overtime Salary Levels
- •U.S. Department of Labor — Fact Sheet #17A
- •U.S. Department of Labor — Overtime Pay
- •U.S. Department of Labor — Fact Sheet #56A: Regular Rate of Pay
- •U.S. Department of Labor — Fact Sheet #56C: Bonuses and Regular Rate
- •29 CFR Part 778 — Overtime Compensation
Educational Disclaimer
This calculator is for estimation only and is not legal, tax, or payroll advice. Actual wage calculations can vary based on local municipal ordinances, specific collective bargaining agreements, salary docking policies, or custom shift arrangements. Always consult official labor departments or qualified professionals for situation-specific guidance.