diff --git a/homeassistant/components/binary_sensor/workday.py b/homeassistant/components/binary_sensor/workday.py
index 57c4533fb5d..81cc8fd8798 100644
--- a/homeassistant/components/binary_sensor/workday.py
+++ b/homeassistant/components/binary_sensor/workday.py
@@ -65,15 +65,20 @@ def setup_platform(hass, config, add_devices, discovery_info=None):
     obj_holidays = getattr(holidays, country)(years=year)
 
     if province:
-        if province not in obj_holidays.PROVINCES and \
-                        province not in obj_holidays.STATES:
+        # 'state' and 'prov' are not interchangeable, so need to make
+        # sure we use the right one
+        if (hasattr(obj_holidays, "PROVINCES") and
+                province in obj_holidays.PROVINCES):
+            obj_holidays = getattr(holidays, country)(prov=province,
+                                                      years=year)
+        elif (hasattr(obj_holidays, "STATES") and
+              province in obj_holidays.STATES):
+            obj_holidays = getattr(holidays, country)(state=province,
+                                                      years=year)
+        else:
             _LOGGER.error("There is no province/state %s in country %s",
                           province, country)
             return False
-        else:
-            year = datetime.datetime.now().year
-            obj_holidays = getattr(holidays, country)(prov=province,
-                                                      years=year)
 
     _LOGGER.debug("Found the following holidays for your configuration:")
     for date, name in sorted(obj_holidays.items()):
diff --git a/tests/components/binary_sensor/test_workday.py b/tests/components/binary_sensor/test_workday.py
index 814606613f5..c828a3b0cd6 100644
--- a/tests/components/binary_sensor/test_workday.py
+++ b/tests/components/binary_sensor/test_workday.py
@@ -38,12 +38,27 @@ class TestWorkdaySetup(object):
             },
         }
 
+        self.config_state = {
+            'binary_sensor': {
+                'platform': 'workday',
+                'country': 'US',
+                'province': 'CA'
+            },
+        }
+
+        self.config_nostate = {
+            'binary_sensor': {
+                'platform': 'workday',
+                'country': 'US',
+            },
+        }
+
         self.config_includeholiday = {
             'binary_sensor': {
                 'platform': 'workday',
                 'country': 'DE',
                 'province': 'BW',
-                'workdays': ['holiday', 'mon', 'tue', 'wed', 'thu', 'fri'],
+                'workdays': ['holiday'],
                 'excludes': ['sat', 'sun']
             },
         }
@@ -122,6 +137,34 @@ class TestWorkdaySetup(object):
         entity = self.hass.states.get('binary_sensor.workday_sensor')
         assert entity.state == 'on'
 
+    # Freeze time to a public holiday in state CA
+    @freeze_time("Mar 31st, 2017")
+    def test_public_holiday_state(self):
+        """Test if public holidays are reported correctly."""
+        with assert_setup_component(1, 'binary_sensor'):
+            setup_component(self.hass, 'binary_sensor', self.config_state)
+
+        assert self.hass.states.get('binary_sensor.workday_sensor') is not None
+
+        self.hass.start()
+
+        entity = self.hass.states.get('binary_sensor.workday_sensor')
+        assert entity.state == 'off'
+
+    # Freeze time to a public holiday in state CA
+    @freeze_time("Mar 31st, 2017")
+    def test_public_holiday_nostate(self):
+        """Test if public holidays are reported correctly."""
+        with assert_setup_component(1, 'binary_sensor'):
+            setup_component(self.hass, 'binary_sensor', self.config_nostate)
+
+        assert self.hass.states.get('binary_sensor.workday_sensor') is not None
+
+        self.hass.start()
+
+        entity = self.hass.states.get('binary_sensor.workday_sensor')
+        assert entity.state == 'on'
+
     def test_setup_component_invalidprovince(self):
         """Setup workday component."""
         with assert_setup_component(1, 'binary_sensor'):