Floating Holiday (Floater) Definition. The term floating holiday refers to a company policy that gives employees the option to work on a paid holiday, and use this benefit on another day. Employers offer employees the option of taking a floating holiday in recognition of the diversity of their workforce. Explanation Also known as floaters, a floating holiday is a benefit that allows an employee to work on a day that is designated as a paid holiday, and use this benefit on a different day. As is the case with holiday pay, employers are not required to provide employees with floating holidays under laws such as the Fair Labor Standards Act.