Seasonal hiring for summer makes sense for a lot of small business owners. You may not need to hire full-time or part-time staff, and hiring seasonal workers may be all you need to keep operations running during your busiest time of year.
But hiring seasonal workers can be tricky. To help, we’ve put together this guide of pay rates, insurance requirements, benefits and the pitfalls of summer hiring.
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Companies hire for seasonal summer jobs for short periods, whether for part-time, full-time or contracted positions. Seasonal hiring is a specific strategy that businesses employ for more hands on deck during peak times.
A summer hiring season could last several months. But if a restaurant anticipates a huge crowd for, say, a special Fourth of July barbecue, the seasonal hiring could be for as little as one day. A season depends on the demand for the product and/or service you offer, and the length of the season.
A business owner may need seasonal hiring to keep up with demand in the spring if they own a lawn care business. A camp could be hiring seasonal staffing only for the summer weeks, plus one or two weeks of preparation and cleanup.
It’s very common for, say, owners of a retail store or a delivery business to seek out holiday hiring for the winter season. But if you sell chocolates and flowers, Valentine’s Day could be an equally busy retail holiday season.
Most employment laws also apply to seasonal workers. But there are some differences when it comes to payment and paid leave.
Every state has different requirements (which may differ from federal laws). Pay rates for most employees must be at least the federal minimum wage, with overtime paid at time and a half. This includes seasonal employees.
The Fair Labor Standards Act (FLSA) sets the hourly rate at $7.25. However, many states have higher minimum wage requirements that you must follow. (Find the minimum wage in your state.)
That said, your business might be exempt. According to the U.S. Department of Labor, some employees may be exempt from minimum wage and overtime pay provisions, including some seasonal workers. Check with a lawyer to verify what your requirements are before hiring for the summer.
Most states require businesses with at least one employee to purchase workers’ compensation insurance. This coverage can help provide coverage for medical expenses, lost wages and other costs related to on-the-job injuries or illness.
Even if you only hire seasonal staff, you’ll probably need workers’ comp coverage. Seasonal employees and temporary staff can file a claim if they get hurt on the job.
And here’s the kicker: Seasonal workers often tend to be at higher risk of injury because they get less training and they’re typically less experienced. Make sure you have the proper training and protection in place before an accident or injury occurs.
Depending on the industry, hiring seasonal employees can help. A few benefits for business owners include:
Some potential downsides of hiring for seasonal summer jobs include:
Seasonal workers can help you fill labor gaps during your busiest time of year. Here are some helpful tips for finding quality seasonal workers:
If you hire staff for seasonal summer jobs, you should protect yourself, your employees and your business with small business insurance.
At NEXT, we’ve got you covered no matter the season. We tailor affordable insurance coverage for more than 1,300 small business professions.
Get a quote, customize your options and buy right-sized insurance online in under 10 minutes.
Amy Beardsley, insurance expert and contributing writer at NEXT Insurance, is a content marketing writer who specializes in small business coverage. Leveraging her background in the legal field, Amy brings a deep understanding of laws, regulations, and compliance requirements to her work. As a content marketing writer since 2016, she has contributed to publications like Legal & General, Berkshire Hathaway Specialty Insurance, Insurify, and NerdWallet. Her work has also appeared in CNBC, Kiplinger, and US News. When she’s not writing, Amy enjoys playing cards with her family and experimenting with new recipes.
