The Financial Impact of Juneteenth

• Author: Mary Singleton
• Posted: 2024-05-25

On June 17, President Biden signed legislation that formally recognized Juneteenth as a federal holiday, creating a new day off in recognition of the trials and tribulations of America's African-American population. The new holiday will unquestionably have workforce and economic impacts, as many businesses and units of government struggle to implement the new holiday and determine the best way to balance their workforce needs.

What is Juneteenth?

Juneteenth is a day that notes the end of slavery in the United States. It is typically observed on June 19th, though for work purposes will be on the nearest weekday, which is June 18th. It is on this day because it was on June 19th, 1865, that slaves in Galveston, Texas - the furthest part of the Confederacy from Washington, D.C. - were told that they were no longer slaves.
The effort to make Juneteenth a formal federal holiday had been going on for decades, with then-Senator Barack Obama co-sponsoring such a legislative effort. Many states had made such a move, but it was only this week that the legislation finally passed Congress. The effort to mark Juneteenth a federal holiday passed the United States Senate by a unanimous vote, then passed the United States House of Representatives 415-14. All no votes came from Republicans.
The new holiday is the first signed into law by the United States federal government since Martin Luther King Jr. day in 1983.

How Are Businesses Reacting?

Even before the Congressional vote, companies were giving their employees off. For example, Nike and Twitter, among others, already reportedly gave their employees a paid day off in recognition of the holiday. Many states, such as New York, Virginia, and Pennsylvania, also did the same. As such, the groundwork has already been laid for many businesses to give their employees the day off.
It's important to note that many companies actually started giving this day off last year, with the time off occurring as a result of the George Floyd and Black Lives Matter movement. This includes organizations like Mastercard, Uber corporate employees, and TikTok. However, the new federal holiday will surely make such efforts continue to expand.
Furthermore, many companies have started to take part in what has become an annual event during major cultural events: Making supportive posts and branded graphics on their social media. Twitter and Facebook are replete with such posts from dozens, if not hundreds, of major corporations.

Will This Be A Major Day Off?

The legislation - signed two days before the actual observation of the holiday - means that it will not gain widespread observation in 2021. Future days, however, may be different. For example, Martin Luther King Jr. Day has become a day off for many throughout the country and even sparked protests among businesses and states that did not take the day off. Whether or not Juneteenth will take a similar pathway remains to be seen.
Of course, a paid holiday isn't an easy thing for any company to absorb, and the concern is understandable. While many businesses are giving paid time off, others are looking at removing another paid holiday - such as Columbus Day - in an effort to ensure that their employees are still as productive this year as they were last. Still others aren't acting on the paid day off just yet, citing the lateness of the observation, and are pledging to reevaluate their decision next year.
However, one thing is for certain: This federal holiday, like others, is not just meant to be a day for relaxation and away from the office. In the federal government and corporate America, managers and bosses are urging their employees to not only take the day off but to reflect on slavery's wrongs and the impact that this poisonous institution has had on America. In memos to their employees, many corporate CEOs are urging their employees to examine societal ills like racial inequality. Furthermore, it seems likely in the future that CEOs will use this as more than just a day off, but to potentially relaunch initiatives directed at increasing investments in minority communities.
Indeed, this is likely the start of a conversation around Juneteenth and its formal observations, not the end of it.