Does Costco Pay Time and a Half? Holiday Pay & OT
Costco is known for strong benefits, but workers should verify current holiday premium rules. Learn which dates matter and estimate holiday earnings.
M. Imtinan Farooq
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Does Costco Pay Time and a Half? Holiday Pay & OT — quick answer
Costco is known for strong benefits, but workers should verify current holiday premium rules. Learn which dates matter and estimate holiday earnings.
Costco is widely recognized for strong employee benefits, and workers commonly search for Costco holiday premium pay. The exact current holiday rate, eligibility rule, and role treatment should still be verified in Costco employee resources before assuming 1.5x.
Costco is closed on several major holidays (including Easter, Thanksgiving, and Christmas) — meaning most employees do not work those days. This guide covers the Costco time and a half holidays workers ask about, worked examples, and the distinction between holiday pay and weekly overtime.
Which holidays does Costco pay time and a half?
Costco holiday premium pay should be verified in current employee resources. Note that Costco is closed on some major holidays, so holiday pay treatment can differ for warehouse, distribution, and other roles:
| Holiday | Likely answer | Notes |
|---|---|---|
| New Year's Day | Verify | Costco may be closed; select-role treatment can differ |
| Easter Sunday | Verify | Costco may be closed; select-role treatment can differ |
| Memorial Day | Verify | Common premium-pay search; current policy controls |
| Independence Day (4th of July) | Verify | Costco may be closed; select-role treatment can differ |
| Labor Day | Verify | Common premium-pay search; current policy controls |
| Thanksgiving Day | Verify | Costco may be closed; select-role treatment can differ |
| Christmas Day | Verify | Costco may be closed; select-role treatment can differ |
⚠️ 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?
Costco employees should verify the current holiday premium-pay rule in employee resources. Some holidays involve store closures, so role and schedule can affect the final pay treatment.
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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Rule last reviewed: July 7, 2026Page last updated: July 8, 2026Official sources
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Estimates only; not legal, tax, or payroll advice. Confirm final pay obligations with the official agency guidance or a qualified advisor.
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