Complete Story
11/21/2023
10-Step Compliance Plan to Hiring Seasonal Workers
Source: Fisher Phillips, November 27, 2023
Employers across a wide variety of industries are looking to ramp up their hiring efforts as the holiday season begins. Indeed, many businesses will rely on temporary workers to meet the uptick in demand that holiday shopping brings – which makes it critical for you to understand and avoid the legal pitfalls associated with seasonal employment. Here are 10 practical tips to help you stay compliant as you prepare for the holiday rush.
1. Understand the Definition of “Seasonal Employee”
First, you should determine whether your temporary employees are truly “seasonal.” According to the IRS, an employee is considered seasonal if the employment period is expected to last for six or fewer months and the need for the role usually starts and ends at about the same time each year – such as November to January for the holidays.
2. Ensure Compliance with Wage and Hour Laws
The federal Fair Labor Standards Act (FLSA) and state laws generally require you to pay seasonal employees 1.5 times their regular rate of pay for all hours worked beyond 40 in a given workweek. However, certain individuals are exempt from overtime requirements under both federal and state law. Under the FLSA, for example, employees of certain seasonal amusement or recreational establishments, organized camps, and religious or nonprofit educational institutions are generally exempt from overtime pay. Additionally, the FLSA provides for subminimum wage for minors under certain circumstances. It’s important that you review your seasonal employees’ status under federal and state law to determine whether overtime exemptions apply. You should also be aware of various state and local laws that apply to meal and rest breaks, predictable scheduling, and other requirements.
3. Verify Employment Authorization
Employers must treat seasonal staff in the same way they treat regular employees by verifying that they are legally eligible to work in the United States. Employers should complete the Employment Eligibility Verification form (I-9 Form) even for seasonal employees. If you're hiring remote workers this season, you should review new options for remote I-9 completion and be sure to use the recently updated Form I-9.
4. Avoid Issues with Misclassification
Businesses often misclassify employees as independent contractors and, in the process, open themselves up to significant potential liability. This temptation can be especially compelling with seasonal employees. You should avoid designating a seasonal worker as an independent contractor without first determining that the circumstances legally justify such a classification. You should also note that some states, such as California, Illinois, Massachusetts, and New Jersey, have stricter rules than federal law when it comes to independent contractor classification.
The Power of Print
Last Thursday marked the grand finale of our month-long Print Week celebrations. From packed rooms and award winners to the connections that brought our industry together, here are some of the highlights that made it so memorable.
Read More401(k) Refund Checks: Why They’re Not Always a Good Thing
Receiving money back from a 401(k) plan may seem like a win, but it often signals that the plan failed IRS nondiscrimination testing. When this happens, certain employees may be required to take corrective distributions, which can lead to unexpected tax consequences and reduced long-term retirement savings. The article also explains how better plan design can help prevent this issue.
Read MoreUSPS Announces Fuel Surcharge
The USPS filed notice with the PRC to impose an 8% fuel charge on competitive products, effective April 26, 2026 - January 17, 2027. Recent hikes in fuel prices - over a dollar in the last month alone - have had a significant impact. This is the first fuel surcharge the USPS has ever imposed.
Read MoreCan EPR & Single-Serve Beverage Packaging Coexist?
As extended producer responsibility (EPR) laws spread to more states, Packaging Digest asked beverage industry analysts what the ramifications could be for beverage manufacturers and their prevalent use of single-serve packaging.
Read MoreLocal Up Your Print Sales to Combat Rising Fuel Costs
Fuel prices are rapidly climbing right now, which sends a tsunami of rising costs through the economy. Businesses respond by tightening marketing budgets, which has a direct effect on the print industry. Fuel costs are outside a printer’s control. How you respond to them is not.
Read MoreSell Hard, Sell Nothing
You work hard but have no sales to show for it. Selling owners can relate to that. Being busy but not productive is often the rule, not the exception. This week's Short Attention Span Sales Tip changes that.
Read More
