During the rush of the holiday season, employers often turn to additional help – seasonal workers. However, as employers are feverishly hiring, they often make a variety of mistakes. According to the U.S. Department of Labor (DOL), employers who are unaccustomed to seasonal hiring may not be aware of the rules and regulations. Are you ready to focus on making your business thrive this holiday season? Continue reading to find out how to accurately add to your employee count.
The Hiring Process
Before you begin the hiring process, establish a well-planned strategy to comply with employment laws. Building a strategy will allow you to protect your business. It’s essential to ensure that new hires are aware that they are hired on a temporary basis. Furthermore, you should require any seasonal employee to acknowledge, in writing, that they will only be guaranteed employment for the specified duration. Another consideration is to utilize “at-will” employees. This type of employee gives employers the legal right to terminate the employee with or without cause.
Employee Classification
When classifying your employees, you want to ensure that the classification is appropriately documented. It might be easy to assume that due to the length of employment, these employees should be classified as independent contractors; however, this is not the case. Employers considering their seasonal workers as independent contractors should ensure that the classification meets the legal requirements.
Wage And Exemption Pitfalls
Common pitfalls employers often see when hiring seasonal workers are due to incorrect pay. Employers make the mistake of paying employees less than minimum wage or failing to comply with overtime requirements. The Fair Labor Standards Act (FSLA) requires seasonal employees to be paid one-and-a-half times the regular pay rate for any additional hour worked over the 40-hour week. However, under FLSA, seasonal workers may be exempt from receiving overtime pay working in establishments such as:
- Recreational establishments
- Organized camps
- Religious groups
- Non-profits
- Educational institutions
Company Size
The size of your organization can create a barrier to the talent you need; however, employee thresholds often vary by state. Additional employees can put small business owners into a new size classification. Employers should determine whether additional workers will convert them into large employers under the Affordable Care Act (ACA). However, if a company is already a large employer, health benefits are required to be provided to seasonal employees. Failure to provide the required benefits can lead to expensive consequences for employers. Consider reviewing your benefits policies and health plans to establish whether these offerings are required.
Simplify Seasonal Hiring With GMS
With the holiday season in full swing, it’s vital for employers to properly hire their seasonal workers. With GMS as a partner, our team of HR professionals can ease the administrative burdens that come along with seasonal hiring. GMS will ensure you remain compliant, so you can focus on growing your bottom line. Contact us today to learn more.