As retailers, restaurants, and other businesses prepare for the holiday season, many employees will be working longer hours or starting seasonal jobs. While the extra work can mean extra income, it can also lead to payroll mistakes, missed overtime, and confusion about employee rights.
Whether employees work in retail, food service, hospitality, or another hourly job, they should know what their employers must pay them.
What is the FLSA?
The Fair Labor Standards Act (FLSA) is the federal law that sets many of the basic wage-and-hour rules for employees. Among other things, it establishes the federal minimum wage and requires overtime pay for many employees who work more than 40 hours in a workweek.
Generally, employees who work more than 40 hours in a workweek must be paid overtime at one-and-one-half times their regular rate of pay. Some employees, however, may be exempt from overtime requirements based on their job duties and salary.
In simple terms, an exemption removes an employee from a particular FLSA requirement, while an exception changes how that requirement applies in a specific situation. Employees who remain protected by the FLSA are often referred to as nonexempt employees.
Seasonal Work and Employee Classification
Certain employees and employers may qualify for exemptions under the FLSA. For example, special rules may apply to some agricultural workers and employees of seasonal amusement or recreational establishments, such as summer camps or amusement parks.
Whether an employee is truly considered a seasonal worker depends on the specific facts of the job and business. Simply working during a busy holiday season or holding a temporary position does not automatically mean an employee is exempt from wage-and-hour laws.
In many cases, seasonal employees are entitled to the same minimum wage and overtime protections as other workers. The key question is often whether a specific exemption or exception under the FLSA applies to the employee’s job or employer.
Employees v. Independent Contractors
The FLSA and state wage laws protect employees, not independent contractors. This means that if you are classified as an independent contractor instead of an employee, these laws may not apply to you. We often see employers improperly misclassify workers as independent contractors.
If you have questions about whether you have been misclassified, please reach out to an experienced wage and hour attorney.
Minimum Wage and Overtime
Iowa and Nebraska have different minimum wage requirements. In 2026:
- Iowa minimum wage: $7.25 per hour
- Nebraska minimum wage: $15.00 per hour
- Overtime generally applies after 40 hours in a workweek for nonexempt employees
In most cases, these minimum wage requirements apply to both seasonal and year-round employees. Certain industries and job classifications may be treated differently under the law.
Working on a holiday does not automatically qualify an employee for extra pay. Instead, overtime depends on hours worked and any applicable employment agreement.
Common Holiday Season Wage Issues
Employees should pay close attention if:
- You are not paid for all hours worked;
- Overtime is missing from your paycheck;
- You are asked to work “off the clock;”
- Your hourly rate changes without explanation; or
- You are classified as an independent contractor even though you work as an employee.
Iowa and Nebraska employees should also pay attention to their paid leave and holiday premiums.
Iowa generally does not require employers to provide paid sick leave, vacation time, or holiday pay. However, employers must follow the policies and agreements they have established for their employees.
Nebraska has additional protection. Under its paid sick time law, eligible employees, including temporary workers, can earn paid sick leave after meeting the law’s work requirements. Covered employers with 11 to 19 employees must allow up to 40 hours of annual accrual. Those with 20 or more employees must allow up to 56 hours.
Nebraska does not generally require private employers to provide paid vacations or holiday premiums.
Protecting Your Pay
As holiday schedules become busier, employees should keep their own records of shifts, hours, and paychecks. They should also check for missing overtime, incorrect hourly rates, and improper deductions.
In Iowa, employers generally must pay departing workers by their next regular payday. Nebraska workers also have legal rights to receive their final wages.
Seasonal and temporary employees have important workplace rights. If a paycheck seems incorrect, workers can request an explanation from their employer or payroll department or seek assistance from their state’s labor agency. Understanding how wage-and-hour laws apply can help workers identify payroll errors and ensure they receive all wages they have earned. When an employer refuses to correct a payroll issue or disputes the hours worked, an employment attorney may be able to review the records and evaluate potential wage claims.