No matter what part of the country you live in, summertime is when service industry businesses are in full swing. The nice weather brings people out, it's when many try to tackle home improvement projects, kids are out of school, and families tend to travel more it's an action-packed time of year.
Whether it's a restaurant or a landscaping business, many hire seasonal workers to keep up with demand. In doing so, it's important that business owners understand how to protect themselves.
Seasonal Definition:
The Affordable Care Act defines seasonal workers as those who are employed for six months or less, and perform a job around the same approximate time each year.
Labor Laws:
Labor laws differ from state to state, and it's important to understand them before looking for short-term workers, and especially teenagers. Important factors to consider include:
- The minimum wage in your state (this often differs for tipped and non-tipped employees
- Child labor laws, including minimum hiring ages and acceptable work hours (these often differ depending on the industry)
- Payday requirements, such as how often paychecks go out
- Overtime laws
- Paid "rest day" laws
To read up on the labor laws in your area, check out the U.S. Department of Labor's state-by-state directory.
Health Insurance:
Under the Affordable Care Act, if you employ a workforce of 50 or more, you may be required to offer health insurance to seasonal employees who work more than 30 hours per week. If your workforce only exceeds 50 because you hire seasonal workers, however, the mandate may not apply.
Other Coverage:
If you're hiring certified independent contractors, there's no need to cover additional benefits. However, according to the U.S. Small Business Administration, employers are still required to pay into Social Security, Worker's Compensation, and, in some cases, unemployment for seasonal workers. For more information, see this ACA compliance guide.
For any business insurance questions, call or contact Robins Insurance today.