What's Open and Closed on Labor Day 2026
Key Takeaways
- •The first U.S. Labor Day celebration took place in New York City on September 5, 1882, with about 10,000 workers marching in a parade organized by the Central Labor Union and the Knights of Labor.
- •President Grover Cleveland signed a congressional act in 1894 making the first Monday of September a legal federal holiday, the same year as the deadly Pullman railway strike.
- •Government offices, post offices, courts, schools, banks, and U.S. stock markets are closed on Labor Day, while most major national retailers and grocery stores stay open and Costco is closed.
- •AAA reports that airfares to top domestic destinations are nearly 20% higher than last year, and the average U.S. gasoline price is just under $4.10 per gallon, up 90 cents year over year.
- •Cruises departing from U.S. ports are about 4% cheaper than last year, according to AAA.

Labor Day traces its origins to the late 19th century, when activists first pushed to create a day honoring workers. The first U.S. Labor Day celebration was held in New York City on Sept. 5, 1882, when roughly 10,000 workers marched in a parade organized by the Central Labor Union and the Knights of Labor.
In the years that followed, a handful of cities and states adopted laws recognizing Labor Day, but more than a decade passed before President Grover Cleveland signed a congressional act in 1894 designating the first Monday of September as a legal holiday. That signing came the same year as the deadly Pullman railway strike, which had put federal labor tensions at the center of national politics, and the holiday's federal recognition is often traced to that climate—though the law itself made no mention of it.
Although many workers have the day off, most large consumer-facing businesses remain open, and many are running promotional sales to attract customers. The federal holiday applies to federal employees and institutions, not private businesses, which is why retail openings vary so widely from the government closures below.
Here is what is open and closed this year on Labor Day:
- Closed: Government offices, post offices, courts, and schools.
- Closed: U.S. stock markets and banks on Monday.
- Limited: Standard FedEx and UPS pickup and delivery services will not operate, though some critical services will be offered at select locations.
- Closed: Warehouse membership club Costco.
- Open: The vast majority of major national retailers and grocery stores, many with promotional sales. Hours may vary by location, so customers should check their local store.
Even though many schools are back in session and travel costs have climbed amid higher fuel prices driven by the conflict in Iran, millions of Americans are expected to take to the roads and the skies for the last big summer travel weekend. Labor Day traditionally marks the unofficial end of the summer travel season, which is one reason demand—and prices—for flights and hotels tend to stay elevated through the weekend.
According to AAA, airfares to top domestic destinations are nearly 20% higher than last year, and hotel prices have also risen. The average U.S. price for a gallon of regular gasoline is just under $4.10, the auto club says—up 90 cents from the same time a year ago. For those traveling by sea, however, AAA notes that cruises departing from U.S. ports are about 4% cheaper than last year.
Unlike Memorial Day and July Fourth, AAA does not issue a full travel forecast for Labor Day, but it does offer practical advice for travelers: monitor the weather and inspect your vehicle's tires, battery, and fluid levels before a road trip. The auto club also recommends packing an emergency kit with water, snacks, a flashlight, and jumper cables.
This story was originally featured on Fortune.com.