What to Know About Hiring Seasonal Employees
Think seasonal hires are simple? Think again.
Whether you’re gearing up for the holiday rush, a busy summer season, or a major event, seasonal employees can give your business the extra muscle it needs, but only if you’re properly prepared. Hiring temporary staff isn’t just a matter of posting a job ad and handing over a uniform. There are real legal, financial, and insurance implications that could affect your business long after the season ends. Before you bring in that part-time cashier or festival crew member, make sure you understand the risks and responsibilities. Here’s what every business owner should know before hiring seasonal employees.
1. Seasonal Employees Are Still Employees—And That Means Legal Obligations
Even though seasonal staff may only be on your payroll for a few weeks or months, they are still legally considered employees. That means you are responsible for meeting all relevant labor laws,federal, state, and local, including those related to wages, overtime, and workplace safety.
For example, the Fair Labor Standards Act (FLSA) requires that non-exempt seasonal workers be paid at least minimum wage. They also receive overtime pay for hours worked over 40 in a week. Some employers mistakenly believe that seasonal workers can be classified as independent contractors. But, unless they meet specific criteria, this classification can lead to serious penalties.
Real-world example: A retail business hires ten seasonal workers for the holiday season. They pay them a flat weekly rate regardless of hours. If those employees work 50+ hours a week without overtime pay, the employer could face wage violation fines.
Bottom line: Treat seasonal hires with the same care and compliance as year-round staff.
2. Workers’ Compensation Coverage Is a Must
It’s a common misconception that short-term or part-time employees don’t need to be covered under your workers’ compensation policy. In reality, nearly all employees must be covered, regardless of how many hours they work or how long they’re employed.
Accidents can happen anytime. If a seasonal worker is injured on the job, your business could be on the hook for medical bills, lost wages, and more, unless you have proper coverage.
Example: A pop-up Halloween store hires seasonal staff to help set up displays and manage weekend crowds. One employee trips over extension cords while assembling a haunted house prop and fractures their wrist. Without workers’ comp coverage, the business may be responsible for the employee’s medical expenses and lost wages, plus potential legal costs.
Or consider a retail store bringing in temporary cashiers for Black Friday. With packed aisles and fast-moving lines, slips, trips, or repetitive motion injuries can easily occur.
Best practice: Review your workers’ compensation policy with your insurance agent before bringing on seasonal help. This ensures coverage limits are adequate and no classifications are missed.
3. Your Liability Exposure May Increase
Bringing new people into your operation, especially those unfamiliar with your procedures, can increase the risk of errors, accidents, and customer service issues. Whether it’s a delivery driver in a company vehicle, a temporary server handling food and alcohol, or a cashier managing transactions, every seasonal worker introduces new exposure points.
This is where your general liability, commercial auto, and employment practices liability insurance (EPLI) come into play.
Example: A seasonal warehouse worker accidentally damages a customer’s property during a delivery. If your commercial auto or general liability coverage isn’t structured to include temporary staff, the claim might not be covered.
Additionally, seasonal workers may be more likely to file claims related to harassment or wrongful termination if onboarding and HR processes are rushed or unclear.
Pro tip: Take time to properly train seasonal staff and document all policies and procedures. And double-check with your insurance advisor that your liability policies account for temporary hires.
Final Thoughts: Don’t Let a Short-Term Hire Create Long-Term Risk
Hiring seasonal employees is a smart move for many businesses, but it must be done thoughtfully. From legal classifications and workers’ comp to liability and training, your temporary team members deserve the same attention as your permanent staff. The key is preparation—and that starts with a conversation about your insurance coverage.
Have questions about how hiring seasonal employees could impact your business insurance?
Contact your local Hertvik Insurance Group agent today. We’ll help you review your policies, fill in any gaps, and protect your business all year long—season after season.