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In a week where a holiday falls on a Thursday, and that Friday is not available for work, should overtime be paid for hours worked over 32, since that was all that was available to work that week?

Or would overtime still not kick in until after the standard 40 hours?
In responding to your question, I am assuming that your company is not unionized and that you have no contract in effect with your workforce that requires you to do more than follow prevailing labor laws.

The Fair Labor Standards Act (FLSA) specifies that hours worked over 40 in any one workweek must be paid at time and one-half. While some states have more stringent pay laws in effect (e.g., time and one-half paid for hours worked over eight in a day), neither federal or state laws require that an employer pay overtime for hours worked over 32 in a workweek regardless of the amount of time otherwise available in that workweek.

Paying overtime kicks in after 40 hours in one workweek have been worked.