Hiring seasonal employees during the summer months makes sense for many small business owners. Hiring seasonal workers might be all you need to keep operations running during your busiest time of year, negating the need for full-time or part-time staffing.
However, it can be challenging to hire seasonal workers. Time Bulletin created this guide on pay rates, insurance requirements, benefits, and risks of summer hiring in order to assist.
Employers fill temporary seasonal summer positions for part-time, full-time, or contract workers. Companies use a specific tactic called “seasonal hiring” to increase the number of employees during peak periods.
Hiring during the summer may take place over a few months. However, seasonal hiring may be limited to a single day if a restaurant expects a large number of patrons for an event, such as a special Fourth of July barbecue. The length of a season and the level of demand for the good or service you provide determine both.
If a business owner owns a lawn care company, they might require seasonal hiring to meet demand in the spring.
For the summer months only, a camp may employ seasonal workers in addition to one or two weeks of preparation and cleanup.
For example, it’s not uncommon for owners of delivery services or retail stores to look for holiday hiring during the winter months. However, Valentine’s Day could be an equally busy retail holiday season if you sell chocolates and flowers.
Seasonal workers are also subject to most employment laws. However, there are some distinctions in terms of compensation and paid time off.
Requirements vary from state to state and may not align with federal laws. Most workers must be paid at least the federal minimum wage, with overtime accruing at a rate of half. Seasonal workers are included in this.
The hourly rate is set at $7.25 by the Fair Labor Standards Act (FLSA). Nonetheless, you have to abide by the higher minimum wage requirements in many states.
Nevertheless, your company may be exempt. The U.S. Department of Labor states that certain workers, such as seasonal laborers, may be exempt from the minimum wage and overtime pay requirements. Before hiring for the summer, confirm your requirements with a lawyer.
Businesses with one or more employees are required by law to obtain workers’ compensation insurance in the majority of states. The costs of medical care, missed income, and other expenses associated with illnesses or injuries sustained at work may be partially covered by this coverage.
You will most likely require workers’ compensation coverage even if you only hire temporary employees. If they are injured at work, temporary workers and seasonal employees are eligible to file a claim.
The worst part is that, due to their lack of experience and training, seasonal workers frequently have a higher risk of injury. Ensure that you have the appropriate protection and training in place before an incident or injury happens.
Depending on the sector, seasonal hiring may be beneficial. Among the advantages for company owners are:
During your busiest season of the year, seasonal workers can assist you in filling labor gaps. The following advice will help you locate competent seasonal workers:
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