Seasonal Employment: Laws and Best Practices Every Business Should Know

Seasonal employment can give businesses a real advantage during peak periods. Whether you hire extra staff for the holiday season, manage a summer tourism surge, or bring in support for tax season, seasonal workers help you meet demand and keep operations running smoothly.

Many businesses continue to compete for talent while pursuing growth, with 63% naming growth as a top priority and 39% saying it is extremely difficult.¹ Seasonal hiring can help bridge that gap during high-demand periods.

So, what is a seasonal job? A seasonal job typically refers to short-term employment tied to predictable business cycles, such as holidays, weather changes, or recurring spikes in demand. In simple terms, seasonal employment means hiring workers for a limited period when your business needs extra support.

Still, hiring temporary staff goes beyond filling open roles. Seasonal employment brings specific legal obligations and compliance risks that business owners and HR professionals need to understand upfront. Missteps in classification, wages, or scheduling can create issues quickly.

This guide explains what seasonal employment means, outlines the laws that may apply, and shares practical tips to help you hire and manage seasonal employees the right way.

What Is Seasonal Employment?

Seasonal employment is short-term work that businesses offer during predictable periods of increased demand, such as holidays, peak tourism seasons, or tax season. A seasonal job typically lasts a few weeks to several months and ends when business demand returns to normal levels.

Seasonal employment refers to temporary work positions created and filled to meet heightened business needs during specific times of the year. These positions typically last for less than six months and may involve roles in industries like retail, hospitality, agriculture, and accounting. Depending on your business and industry, building and maintaining a seasonal workforce that expands and contracts throughout the year can help save time, control costs, and allocate resources more efficiently.

Seasonal Employees vs. Seasonal Workers

It’s helpful to understand the distinction between a seasonal employee and a seasonal worker, using standards from two distinct federal bodies:

Seasonal Employee (IRS standard): An individual who works for six months or fewer, typically during the same part of the year, such as the holiday or summer season.

Seasonal Worker (U.S. Department of Labor standard): An individual who performs labor on a seasonal basis, such as employees hired during retail holiday surges or agricultural harvest periods.

Seasonal employees may still trigger employer obligations under the Affordable Care Act (ACA), depending on workforce size and hours worked. For many employers, these distinctions matter most when determining whether a business qualifies as an Applicable Large Employer (ALE) under the ACA and must offer health coverage.

Under the ACA, employers should pay close attention to how seasonal employees and seasonal workers factor into their workforce calculations:

• An employer qualifies as an Applicable Large Employer (ALE) if it averages 50 or more full‑time employees, including full-time equivalents (FTEs), on business days during the prior calendar year.
• A full-time employee generally works at least 30 hours per week or 130 hours per month.
• Under the ACA’s 120‑day seasonal worker exception, an employer may disregard certain seasonal workers when determining ALE status if the workforce exceeds 50 full‑time employees for 120 days or fewer during the calendar year — and those employees in excess of 50 are seasonal workers.
• If the workforce exceeds the 50‑employee threshold for more than 120 days in the calendar year, the employer is an ALE for that year and must comply with ACA employer shared‑responsibility (pay‑or‑play) and reporting requirements.
• Even when using the seasonal worker exception, employers must track hours carefully to avoid misclassification and potential penalties.

Understanding how seasonal employment affects ACA status helps businesses plan hiring strategies while managing compliance risk.

Laws and Regulations for Seasonal Employment

Businesses must follow federal, state, and local employment laws when hiring seasonal employees or filling seasonal positions. Even short-term roles carry the same compliance obligations as permanent positions, and requirements can vary based on location, workforce size, and industry.

Compliance expectations continue to grow, with data privacy now emerging as the #1 compliance challenge for many businesses.¹

Below are some of the key regulatory requirements:

Minimum Wage for Seasonal Employees

Employers must pay nonexempt seasonal employees or workers at least the federal minimum wage, which remains $7.25 per hour as of 2026, or a higher state or local minimum wage if one applies.

Many states and cities now require minimum wages well above the federal rate, so employers should confirm the applicable rate before hiring. For a current breakdown by state, see U.S. minimum wage by state.

Overtime for Seasonal Employees

Under the Fair Labor Standards Act (FLSA), nonexempt seasonal employees must receive overtime pay at one and one-half times their regular rate for all hours worked over 40 in a workweek. Some states impose stricter overtime rules, so employers should confirm state-specific requirements.

Rare and limited exceptions apply to qualifying amusement or recreational establishments. Because this exemption applies narrowly, employers must carefully review eligibility before relying on it.

Child Labor Laws

Some seasonal employees may be under age 18. Federal law limits the number of hours minors can work and prohibits them from performing hazardous duties. Federal law applies different restrictions based on a minor’s age and job duties. Employers should review federal guidance and confirm any additional state-specific requirements before scheduling or assigning work.

Federal Family and Medical Leave Act and Other Paid Leave

Seasonal employees generally do not qualify for leave under the Family and Medical Leave Act (FMLA). To qualify, an employee must:

• Work for a covered employer
• Have worked for the employer for at least 12 months (not necessarily consecutive)
• Have worked at least 1,250 hours during the 12 months immediately before the leave starts
• Work at a location where the employer has at least 50 employees within a 75-mile radius

Most seasonal roles do not meet these thresholds, so FMLA coverage usually does not apply. However, some state and local leave laws may cover seasonal employees, depending on how those laws define eligibility.

Employee Benefits for Seasonal Employees

Seasonal employees do not automatically receive benefits. Many employers ask whether seasonal employees get benefits, and the answer depends on the employer’s plan design and the employee’s hours worked or length of service.

For example, seasonal employees may become eligible for certain benefits if they meet plan requirements. Employers should also consider how seasonal employees affect Affordable Care Act (ACA) compliance, particularly when determining Applicable Large Employer (ALE) status.

For a deeper look at benefit eligibility and workforce classification, see:

• 5 things to know about offering benefits to part-time employees
• Hiring part-time vs. full-time employees

Tax Withholding

Seasonal employees remain subject to the same tax withholding and reporting requirements as full-time employees. Employers must withhold Social Security and Medicare taxes, along with federal and applicable state income taxes.

Jurisdictional Variations

State and local laws may impose additional requirements for seasonal employment. These may include predictive scheduling rules, paid leave mandates, or higher wage standards. Employers need to review the laws that apply in each location where they operate to stay compliant.

Misclassification Risks and Legal Consequences

Misclassifying seasonal staff — such as classifying these workers as independent contractors instead of as employees — can lead to significant legal penalties for businesses. Employers must provide accurate classifications to ensure:

• Adequate tax withholdings
• Compliance with wage and hour laws
• Compliance with state workers’ compensation requirements
• Appropriate benefit entitlements

Remember: Proper worker classification is what could make or break your business. Failure to classify workers correctly could result in fines, back pay, and reputational damage.

Is Hiring Seasonal Employees Right for Your Business?

Hiring seasonal employees can help businesses respond to changing demand without committing to long-term staffing. A seasonal employment strategy gives you flexibility, but it also requires planning, training, and oversight to work effectively. Before you move forward, weigh the benefits and trade-offs.

Benefits of Seasonal Employment

Seasonal employment can support business growth during peak periods while helping you manage costs and staffing levels more efficiently. When used strategically, seasonal jobs can strengthen operations without adding permanent overhead.

• Cost Savings: Seasonal employees often reduce long-term payroll obligations and limit benefit-related costs tied to full-time staff. With turnover costs now ranging from approximately $10,200 to $23,000 per employee, seasonal staffing can help control labor costs during peak periods.¹
• Operational Efficiency: Seasonal workers help you meet peak demand without overextending your core team or increasing fixed overhead.
• Access to Wider Talent Pools: Seasonal positions attract a diverse group of candidates, including students, retirees, and individuals seeking flexible work.
• Workforce Flexibility: Seasonal employment allows you to scale your workforce up or down based on predictable business cycles.
• Potential Pipeline for Future Hires: Strong seasonal employees can transition into permanent roles, reducing future recruiting time and costs.

Drawbacks of Seasonal Employment

Seasonal hiring can create challenges if you do not plan carefully. Businesses need to manage onboarding, scheduling, and performance expectations to avoid disruptions during critical periods.

• Staffing Gaps: Unexpected demand or turnover can leave you short-staffed during peak times.
• Training Demands: Seasonal workers often need onboarding and supervision, which can strain internal resources.
• Performance Variability: Short-term employees may not develop the same level of consistency or engagement as permanent staff.
• Higher Turnover Risk: Seasonal employees may leave early if they find other opportunities or if schedules change.
• Compliance Risks: Missteps in classification, scheduling, or wage and hour rules can create legal exposure, even for short-term roles.

How To Hire Seasonal Employees

To ensure a smooth hiring process and find qualified candidates, follow these best practices:

• Start Early: The #1 HR challenge that business leaders face is attracting and recruiting talent.¹ Begin recruiting well before your busiest season and consider partnering with a hiring platform that can help you get the job done. This gives you time to attract skilled and qualified candidates.
• Create Clear Job Descriptions: Specify roles, responsibilities, and schedules upfront to manage expectations. Clearly state that the role is a seasonal position, including expected start and end dates. This helps candidates understand the temporary nature of the job and reduces early turnover or misaligned expectations.
• Use Multiple Hiring Channels: Post on job boards, attend local job fairs, and use social media.
• Reconnect with Past Seasonal Workers: Employees you’ve hired before are already trained and familiar with your business. Rehiring past seasonal employees can shorten onboarding time and improve productivity during peak periods. Keeping a list of prior seasonal workers also creates a reliable recruiting pipeline.
• Encourage Employee Referrals: Ask your current team to recommend candidates. Internal referrals often produce higher-quality hires because your employees understand the role and your expectations. They can also help you fill seasonal positions faster, which matters when hiring timelines are tight.
• Screen Candidates Effectively: Conduct background checks, where appropriate, and interviews to assess qualifications.
• Set Expectations Clearly: Explain the temporary nature of the role and performance goals.
• Provide Proper Onboarding: Train seasonal workers just as thoroughly as other staff to help ensure strong productivity.
• Recognize Performance: Acknowledge contributions through incentives or verbal praise to boost motivation and gain a positive reputation. Just because your team is seasonal doesn’t mean employee engagement should fall by the wayside. A highly engaged workforce increases profitability by 21%.²

What To Know About Seasonal Employee Onboarding

Seasonal employee onboarding should move quickly while still covering the essentials. A streamlined process helps new hires get productive faster without creating compliance gaps.

HR teams already spend significant time on administrative work, averaging between 7.3 and 12.1 hours per week on these tasks. Payroll alone accounts for about 17% of that time, which leaves less room for strategy, retention, and growth initiatives.¹ Efficient onboarding helps limit that additional strain during seasonal hiring periods.

At a minimum, employers need to complete required documentation for seasonal employees, including:

• Form I-9 (Employment Eligibility Verification)
• Form W-4 (Employee’s Withholding Certificate)
• State new hire reporting (as required)

Even for short-term roles, these requirements apply from day one.

Training should focus on what seasonal employees need to perform their roles safely and effectively. Instead of full-scale onboarding programs, many employers use abbreviated training that prioritizes job-specific tasks, key policies, and customer-facing expectations.

Employers should also set clear expectations upfront. Communicate the seasonal nature of the role, including expected start and end dates, schedules, and performance standards. This reduces confusion and helps avoid early turnover.

Finally, provide access to key workplace policies, whether through an employee handbook or standalone documents. Seasonal employees still need to understand rules related to conduct, safety, timekeeping, and reporting concerns.

Maximize Your Seasonal Workforce While Staying Compliant

Seasonal employment offers businesses an efficient way to meet fluctuating demands. By understanding the applicable employment laws when hiring seasonal workers and following the best recruitment practices, employers can enjoy enhanced operational flexibility and cost savings.