Can floating holidays carry over to the next year?

The beauty of having fewer federal requirements involving paid time off is that it gives you room for employer preference. How you choose to design your floating holiday package and accrual system is completely up to you and what you believe will benefit your organization. With this being said, take into consideration your state's laws before implementing anything permanent.

For instance, some states ban "use it or lose it" vacation policies, so you might opt to pay employees for unused floating holidays each year if you want to prevent accrual while still fairly compensating everyone for their time.