Workers’ Compensation insurance requirements for seasonal hiring
Most states require businesses with at least one employee to carry workers’ compensation insurance. This coverage can help cover medical expenses, lost wages and other costs related to on-the-job injuries or illnesses. Workers’ comp can help protect your business from covering these costs out of pocket. It can also help provide support to injured employees so they can recover and return to work.
During the busy summer season, the risk of workplace injuries can increase, especially for businesses like catering companies, hospitality and event vendors, tour operators, restaurants and recreation businesses that add temporary staff during peak demand. Seasonal employees are often less experienced, receive less training and are placed into fast-paced environments right away. That combination can lead to:
- Physical injuries: Slips, trips and falls, strains from lifting or moving equipment or accidents caused by working quickly under pressure.
- Repetitive motion issues: Tasks that require constant lifting, packing, carrying or operating equipment can lead to sprains and overuse injuries.
- Heat-related illnesses: Employees working outdoors may face heat exhaustion, dehydration or other heat-related risks during warmer months.
- Fatigue and stress-related risks: Long hours, irregular schedules, high customer demand and outdoor work can raise the chance of mistakes that cause accidents or injuries.
Seasonal employees are usually treated the same as full-time employees or part-time staff when it comes to workers’ comp. That means if you’re required to carry coverage for your business, your temporary hires typically need to be covered, too.
Check your state’s requirements before hiring seasonal help to avoid unexpected costs and compliance headaches.
Best practice: Even temporary employees should go through basic safety training. A short orientation on lifting techniques, handling spills or navigating customer interactions can reduce the likelihood of accidents — and may also help lower the number of workers’ comp claims.
Pay rates and overtime pay for seasonal workers
Seasonal employees are generally subject to the same employment laws as regular employees, including rules on minimum wage and overtime pay. Under the Fair Labor Standards Act (FLSA), most seasonal employees must earn:
- At least the federal minimum wage ($7.25 per hour) and;
- Receive overtime pay at one-and-a-half times their hourly wage for hours over 40 in a workweek.
However, state laws differ significantly, often requiring a higher minimum wage or more generous overtime rules. (Check your state’s minimum wage.) Non-compliance can lead to costly fines or legal action, so staying informed about your local regulations is crucial.
During the summer season, overtime can become especially relevant. Businesses in hospitality, food service, tourism, construction and outdoor services often see an increase in customer demand and may extend operating hours or add shifts to keep up. These longer shifts can quickly trigger overtime pay requirements, so it’s important to budget for extra labor costs and schedule staff carefully.
There are exceptions specific to seasonal businesses. For example, employees at seasonal amusement parks or recreational facilities operating less than seven months per year might be exempt from the standard overtime pay requirements set by the FLSA. If your business falls into these categories, carefully verify your eligibility for these exemptions.
Best practices: Document employment terms — including pay rates, overtime policies, and expected work hours — to prevent misunderstandings and potential disputes. Consult a labor attorney or your state labor department before hiring seasonal workers to ensure you’re fully compliant.
7 tips for hiring and retaining seasonal employees
These tips can help you find quality seasonal workers when you need them most:
1. Start recruiting early to stay ahead of seasonal demand
Labor shortages make it increasingly important to recruit early and strategically.
Small businesses can face tough competition for seasonal talent. A 2025 NEXT survey found that labor shortage concerns have doubled – now a concern for 30% of small business owners – since we last took a pulse check in 2023. It saw the biggest increase among all sources of stress for small business owners.
Summer seasonal employment often begins in late spring and can extend through Labor Day, depending on the industry. Summer camps, recreation businesses, landscaping companies and restaurants may begin recruiting weeks or even months before their busiest season.
Employment duration varies. For example, an event vendor may hire temporary staff for a weekend festival, while a landscaping company or restaurant may need seasonal help for several months to handle increased summer demand.
Use local job boards, social media, university bulletin boards, or seasonal hiring platforms to gain a head start over your competition. A few popular job boards include:
2. Clearly define seasonal job expectations
Seasonal workers thrive when their roles are clearly defined. When creating job descriptions, state job responsibilities, work schedules, pay rates, overtime expectations and the exact duration of the position in your job listings and interviews. Transparency helps seasonal hires fully understand their roles, reduces turnover and helps employees stay motivated throughout the busy summer season.
3. Focus on candidates specifically seeking summer seasonal work
Target candidates explicitly interested in summer seasonal roles. College students, students on summer break, recent graduates seeking temporary work, teachers and school staff during summer vacation, seasonal travelers looking for short-term employment and retirees seeking extra income can make ideal candidates.
Mark your job postings with clear language such as “summer seasonal,” “temporary summer positions,” or “perfect for students seeking summer jobs.” This specificity ensures applicants fully understand the short-term nature of the work, minimizing unexpected turnover mid-season.
4. Prioritize enthusiasm and adaptability during peak summer demand
Most temporary work doesn’t require extensive experience. Attitude and adaptability are key to successful seasonal hires. Look for candidates with energy, enthusiasm and strong interpersonal skills.
DIY manufacturing shop owner April Wilkerson looks for these traits when vetting new team members. “Anybody who shows a willingness to want to be on my team and be in my world, I say ‘Sure, let’s give it a try.” But she also advises owners to know when things aren’t going to work out.
During interviews, ask questions that assess adaptability to busy seasonal work environments, such as, “Tell me about a time you had to be flexible or shift gears fast during work,” or “How do you handle high-pressure situations like busy weekends, outdoor events, increased customer traffic or changing schedules?”
5. Give preference to returning seasonal workers whenever possible
Returning workers already know your company’s culture and processes, and require minimal retraining.
Maintain seasonal employee relationships during the off-season. Check in periodically to ensure your former seasonal workers return eager and ready to contribute again. Businesses with recurring busy seasons often benefit from bringing back experienced seasonal employees who already understand company procedures and expectations.
6. Offer seasonal perks and incentives
Make your seasonal jobs more attractive with seasonal perks such as flexible scheduling, employee discounts, end-of-season bonuses or team-appreciation events like team dinners, outings or summer celebrations. These incentives may help attract higher-quality candidates who might otherwise choose other summer opportunities.
7. Streamline onboarding to maximize seasonal productivity
Seasonal demand can ramp up quickly, so you’ll want your new hires to be productive quickly. Develop concise, efficient onboarding and training materials — such as checklists or short training videos — to speed up the process.
Benefits and disadvantages of hiring for summer jobs
A few benefits for business owners hiring for the season include:
- Flexible schedules: Scale up or down quickly to accommodate seasonal increases in demand by controlling how much staff you hire, when you hire them and how long their employment lasts.
- Lower employment costs: Eliminate the costs of hiring full-time staff by hiring seasonal employees to work during busy seasons only.
- “Test-driven” employees: Use the seasonal hiring period to determine if an employee is a good fit for your business year round.
Some potential downsides of hiring for seasonal summer jobs include:
- Workers with less training: Due to the brief period of employment, you’ll have less time to train seasonal employees. It could result in lower-quality work.
- Lack of loyalty: Seasonal staff don’t have as much skin in the game as regular employees, which could make productivity and performance suffer. They could also be more likely to leave mid-season, forcing you to hire again during your busiest season.
- Legal hurdles: Hiring seasonal staff may have different laws and requirements. Make sure you understand the rules around seasonal labor in your area.
