Updated 4/26/26
Every year as summer approaches, many businesses look to meet heightened demand during their busy season by hiring seasonal employees. Others seek to employ college students who are on break as a way to build their talent pipeline and help augment their workforce. Whatever the reason, bringing on temporary workers comes with challenges and considerations. Here is what companies need to know when hiring seasonal staff.
Interns
Communicate compensation expectations with prospective interns, clarifying whether the position is paid or unpaid, and if there are additional benefits such as stipends or bonuses. If the internship is unpaid, ensure it meets federal and state requirements, including the “primary beneficiary” test used to determine whether the internship is primarily for the benefit of the intern.
Outline compensation details, including hourly rates or fixed amounts, ensuring interns understand their financial arrangements before accepting the position.
Ensure the intern understands the role by providing clear expectations and goals, and by outlining responsibilities. If the internship is part of the intern’s educational program, you may need to coordinate requirements such as coursework or confirmation of academic credit eligibility.
Foster a supportive environment that promotes growth, learning, and professional development, while also protecting their rights. While internships are a great way to scout future talent, be sure to communicate that there is no guarantee of employment following an internship.
Worker Classification
Just like with permanent employees, you need to assess whether your seasonal staff are independent contractors or employees based on labor law guidelines. Proper classification determines pay structure, tax obligations, and eligibility for overtime.
Employees classified as exempt must meet both salary basis and duties tests and are not eligible for overtime pay. Non-exempt employees are generally paid hourly (or may be salaried but non-exempt) and must be paid overtime based on 40 hours in a workweek (in most states), subject to applicable federal and state law.
Minimum Working Age
Be aware of both the Fair Labor Standards Act and state’s laws whenever employing people under 18 years old. As a general rule, federal law sets 14 years old as the minimum age for employment and limits the number of hours worked by minors under the age of 16, with additional restrictions on certain job duties for workers under 18.
Health Benefits
Seasonal workers are not typically offered company health insurance, 401(k), or other benefits commonly extended to full-time employees. However, eligibility may vary based on hours worked and applicable law.
When determining whether you are an applicable large employer (ALE) under the Affordable Care Act (generally 50 or more full-time employees, including full-time equivalents), it is important to properly track seasonal employee hours. A seasonal employee is generally defined as someone hired for a position that is intended to last six months or less and is tied to a recurring annual period of need.
Time Off Policies
Finally, make sure seasonal workers have your employee handbook and time off policy and understand how to request it. Be aware of state-mandated sick leave, which applies to seasonal and part-time workers as well.
Are you hiring seasonal employees? Whether you’re looking to bring on board temporary or permanent, full-time staff members, we can help. Contact us today.
