There are two types of holidays, weekday-based ones and date-based ones. Martin Luther King (MLK) Day, observed on the 3rd Monday of January, is an example of weekday-based holidays. Date-based holidays include Independence Day (4th of July) and Christmas Day (Dec. 25). When a date-base holiday falls on weekend, it is usually observed one day earlier on Friday, or later on Monday.
Here is an example Oracle implementation for calculating observed MLK Day and Independence Day.
Here is the equivalent SQL Server implementation.
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