Seasonal employment can be a lifeline for many businesses during peak times, providing the extra hands needed to handle increased demand. However, seasonal hiring raises questions about employment durations, legal obligations and best practices. Employers need to understand relevant regulations to help prevent legal issues and optimize their seasonal workforce.
What is a seasonal worker?
A seasonal employee is a temporary worker whose employment is tied to specific seasons or peak business periods. Unlike permanent employees, seasonal workers are not on the payroll year-round. Their employment length can vary, but generally lasts less than half a year, aligning with the busiest times for the business.
Seasonal roles can be either part-time or full-time, and, during peak times, such as the holiday shopping season, businesses might even require seasonal employees to work more than 40 hours per week.
The U.S. Department of Labor oversees regulations that protect the rights of seasonal employees and ensures that businesses comply with labor laws. Understanding the basics of these guidelines is the first step to effectively managing seasonal roles.
When do seasonal jobs start and end?
Most seasonal jobs have clear start and end dates that align with peak demand periods, and companies typically begin the hiring process months in advance to ensure that they will have adequate staffing during the busy season. The work schedule for seasonal employees can vary significantly depending on the industry and the needs of the business.
Seasonal employment spans various industries, each with unique peak periods. For example, retail businesses ramp up hiring during the holiday season to manage the influx of shoppers. In the agriculture sector, seasonal employment is tied to the growing and harvesting seasons. Similarly, ski resorts and summer camps often rely on seasonal employees as their workforce during their operational periods.
How long can you keep a seasonal employee?
The duration of seasonal employment can vary widely based on an organization’s staffing levels. Common durations range from a few weeks to several months, depending on the employer’s needs and the industry’s peak periods.
In general, there are no restrictions on the number of hours a seasonal employee can work each week, which can give both workers and employees scheduling flexibility. However, overtime compensation rules do apply to seasonal employees who work more than 40 hours in a given week.
Additionally, job-related stress and limited training can pose challenges, potentially affecting retention and employment length. Effective management strategies are essential to help mitigate these issues.
Legal Considerations for Seasonal Employees
Regulatory compliance is crucial when hiring and managing seasonal employees. Federal labor standards, including minimum wage and overtime rules, apply to seasonal workers, helping to ensure fair treatment of these employees. Adhering to statutes like the Fair Labor Standards Act (FLSA) and complying with both federal and state regulations is key for employers.
Federal and State Regulations
Seasonal employees are entitled to at least the highest applicable minimum wage, whether this is set by federal, state or local law.
In most cases, nonexempt seasonal workers are entitled to overtime pay, calculated at one and a half times their regular pay rate, for hours worked over 40 in a week. State wage laws can vary and may impact how overtime pay is calculated, so verifying your local employment and tax regulations is essential before hiring seasonal workers.
Minors aged 14 and 15 may work as seasonal employees in permitted occupations outside of school hours, provided they adhere to federal guidelines. It’s also important to note that seasonal employees are subject to the same tax withholding rules as permanent staff.
Permitted Occupations and Hazardous Work
Federal and state regulations restrict minors under 18 from working in hazardous conditions in order to protect their safety, and these regulations apply regardless of the minor worker’s employment duration (i.e., whether they are a permanent or seasonal employee).
In general, children under 14 cannot be employed in any capacity. Fourteen- and fifteen-year-olds may be employed outside of school hours in a permitted occupation. This could include working in a seasonal capacity, so long as federal, state and local child labor laws are followed.
Sixteen- and seventeen-year-olds can work in any non-hazardous occupation, whether in a permanent or seasonal role. Employees in a non-agricultural hazardous occupation must be at least 18 years of age, regardless of their employment duration.
Benefits and Challenges of Hiring Seasonal Workers
Hiring seasonal workers can offer several benefits, such as financial advantages from reduced payroll costs during off-peak times. Seasonal employment also provides businesses with the flexibility to quickly adjust their workforce in response to fluctuating demand.
However, there are challenges as well. High turnover rates and the time-intensive nature of training new seasonal workers can affect productivity and employee satisfaction. Offering competitive pay and recognizing the contributions of seasonal workers can help to improve retention rates within this temporary workforce. Additionally, identifying high-performing seasonal employees and providing pathways to permanent positions can cultivate greater workforce stability.
Best Practices for Managing Seasonal Employees
Clear communication about job responsibilities and expectations is essential for managing seasonal workers effectively. Efficient and well-established onboarding processes can help seasonal employees acclimate faster, potentially reducing training time during peak seasons.
Providing a mentor during the onboarding phase may help seasonal employees integrate into the team and foster a sense of belonging. Creating a positive work environment and offering competitive wages are also crucial for retaining skilled seasonal workers throughout the duration of the peak business period.
Have more questions about seasonal workers?
Seasonal employment can offer a flexible and cost-effective way to meet peak demand, but it requires careful planning, management and compliance strategies.
If you need help hiring seasonal employees or complying with relevant regulations, Higginbotham can help. Speak with one of our HR consultants today and learn how our team of experienced HR professionals can help set your team up for success.
