Understanding Seasonal Employment: Types, Benefits, & Tips

Seasonal employment is a type of employment wherein an individual fulfills a job or a task only during specific times of the year. In other words, it is a temporary work opportunity that can last for a few weeks to several months, depending on the job demand.

Despite its short-term arrangement, seasonal work has its fair share of benefits, and it also comes with specific regulations.

That said, if you’re looking to take on seasonal jobs, this article will serve as your guide to uncovering what to expect when it comes to seasonal work and understanding how it compares to part-time jobs. Let’s jump right into it!

Key Takeaways

• Seasonal employment is a short-term job or work opportunity wherein businesses hire workers to supplement their existing workforce during busy months or peak seasons.
• Since seasonal workers are often paid hourly wages, they are considered non-exempt employees and are also eligible for overtime payments and federal minimum wage rates.
• By offering seasonal work, businesses can regulate operational costs, meet high customer demands, and scout for skilled workers to fill more advanced positions in the company.

What is Seasonal Employment, and How Does it Work?

Seasonal employment, also called a seasonal job or seasonal work, is a temporary work arrangement that is only made available during certain times of the year, particularly during the holidays, summer, or winter.

Despite being available on a short-term basis, the duration at which seasonal employment can last varies depending on the complexity and nature of the job. Other factors that affect seasonal work include location, industry, and the time of the year when the job is available.

People who take on this particular type of temporary employment are called seasonal workers. Seasonal workers can be students, freelancers, independent contractors, or even full-time employees looking for a way to earn extra income.

When it comes to seasonal employment salary or payment, federal regulations require employers or businesses to establish a fixed or regular pay frequency for seasonal workers.

However, there may also be certain variations in how seasonal workers receive their compensation in different states. Meanwhile, when it comes to identifying whether seasonal workers are non-exempt or exempt, they are usually categorized as non-exempt.

As such, the Fair Labor Standards Act (FLSA) requires that seasonal employees get paid at least the federal minimum wage.

The FLSA also obliges employers to pay seasonal workers overtime compensation if they work for more than 40 hours a week.

Examples of Seasonal Employment

A good number of seasonal jobs overlap with independent contractor jobs because both of these work opportunities are fast-paced, short-term, and on-demand. Here are some of the most common examples of seasonal employment:

• Tour guide. Tour guides show guests or visitors around a specific venue or tourist attraction while providing them with interesting bits of information about the location.

• Camp staff. Camp staff are people hired at summer camps. Their job can include maintenance tasks, providing basic health care services, facilitating summer activities, or preparing meals.

• Construction. Construction workers are considered seasonal workers because once a project is completed, they must look for a new one so they can continue working and earning money.

• Holiday season retail worker. A retail worker hired during the holiday season assists in handling the surge in sales, managing inventory and stocks, and ensuring the business successfully meets customer demands.

• Tax preparer. The demand for tax preparer services usually arises during the tax season, from January to April. Businesses and individuals seek the expertise of an experienced tax preparer or professional to help them account for their tax refunds and liabilities.

3 Key Benefits of Seasonal Employment for Employers

Seasonal employment benefits employers in such a way that it provides them with an extra workforce during peak business seasons. There are also other notable advantages of seasonal employment for businesses, such as:

#1. Cost-Effective Resource

Meeting customer demands can be quite challenging, especially during the holidays when competitors are also focused on offering promotions, boosting their sales, and acquiring new customers.

By hiring seasonal workers to address the extra work during peak times of the year, employers effectively manage their workload without the long-term costs of onboarding long-term employees or updating their payroll processing practices for new hires.

#2. Potential Long-Term Hires

The flexibility of employing workers only during certain times of the year allows employers to screen potential talent and assess a temporary worker’s capacity to adjust to the company’s qualifications and requirements.

For instance, an employer hires a seasonal sales worker during the holidays and observes that the worker exhibits other useful skills that would make them an excellent addition to the team.

The employer can then contact the said worker for future seasonal employment opportunities. Optionally, business owners can also offer a long-term or permanent position to help the worker maximize their skills and capabilities.

#3. Filled Employment Gaps

Aside from addressing the sudden boost in client demand and sales, seasonal employment also allows businesses to adjust to the possibility of experiencing high turnover rates. Not to mention, onboarding new staff can take time.

That is why employers benefit from seasonal employment—it gives them additional time to source recruits who can fill vacant positions while they ensure continuous and smooth-sailing business operations.

4 Compelling Benefits of Seasonal Employment for Employees

One of the main benefits of seasonal employment for employees is that it offers a flexible way to earn money. Since seasonal work does not entail a long-term commitment to the job, many employees use this type of work arrangement to boost their income quickly.

Aside from offering an instant source of income, seasonal employment also offers the following key benefits:

#1. Flexible Work Hours

Seasonal employee hours do not require workers to dedicate a full eight hours just to fulfill their tasks. They usually only need to dedicate less than 30 hours a week, depending on the task assigned to them.

Some workers juggle a full-time job with seasonal work to maximize their time and earning potential. Also, students are welcome to take on seasonal work during their summer or winter break.

#2. Filled Employment Gaps

Not all potential employers and hiring specialists have a favorable reaction when they see any gaps in an applicant’s employment history.

One good way to address gaps in employment is to take on seasonal work that will help build an employee’s skills and professional work while they navigate their way to a new permanent job.

Individuals who are in the middle of job hunting can also try seasonal work in industries that capture their interest to get a preview of whether the job demands suit their current knowledge and level of expertise.

#3. Relevant Work Experience

Speaking of building skills, seasonal employment also provides an excellent avenue for fresh graduates to gain relevant work experience and build their resume or work portfolio.

Whether the job has to do with working in a restaurant, retail shop, or firm, individuals who are new to the world of employment can use seasonal employment as a stepping stone for their careers.

#4. Inclusive Work Opportunity

The beauty of seasonal employment is that it is available for people of all ages and backgrounds. Students, fresh graduates, and even professionals with extensive work experience can take on seasonal work depending on their needs and goals.

How Long Does Seasonal Employment Last?

Seasonal employment usually lasts from a few weeks to a maximum of three to four months. The said time frame is the typical duration of busy months and periods for most businesses in a given year.

However, employers may continue to employ the services of a seasonal worker, depending on the amount of work that still needs to be done. For instance, seasonal employment during the holidays can start around October and last until January or early February.

In most cases, employers also provide seasonal workers with an employment contract that specifies the start and end dates of their work arrangement with the company or business.

Part-Time Employment vs. Seasonal Employment

The main factor that differentiates part-time employment vs. seasonal employment is that the former requires regular work hours and more steady work opportunities compared to the latter.

In fact, part-time work can last longer than a couple of months and provide freelancers and contractors with a more stable source of income.

A good example of this is how photographers, content writers, and graphic designers can pursue their passions as freelancers continuously as long as they have clients who trust their skills and offer them short- and long-term projects to work on.

It is also worth noting that a part-time job can be available regardless of the season or time of the year. On the other hand, when you compare a seasonal employee vs. a part-time worker or freelancer, the former is only hired during certain times of the year.

Once the season or period when businesses need extra manpower subsides, the working agreement between the employer and the seasonal worker ends as well. On the bright side, seasonal work offers a higher pay rate compared to a part-time gig.

Since businesses only require the services of a seasonal worker for a set period, a good way to attract skilled individuals to take on temporary work demands is by offering higher wages.

In this manner, the pay balances the limited time that a worker dedicates to earning, learning more skills, and expanding their professional network.

3 Crucial Seasonal Employment Laws and Regulations

The laws and regulations for seasonal employment are primarily governed by three essential factors: the Fair Labor and Standards Act, the specific conditions of hiring youth to do seasonal jobs, and the specific tax forms that employers must furnish for seasonal workers.

#1. Fair Labor and Standards Act (FLSA)

The FLSA obliges employers to compensate workers with at least the federal minimum wage or the standard minimum wage rate in their state.

Meanwhile, seasonal employment laws do not necessarily dictate or restrict how businesses arrange a seasonal employee’s work schedule. As such, employers still have the freedom to change or adjust a seasonal worker’s schedule as they see fit.

#2. Hiring the Youth for Seasonal Work

That being said, employing the youth for seasonal employment has specific conditions that must be met in terms of their work hours and the kinds of occupations they are allowed to take on.

Understandably, seasonal staff aged 14 and 15 are not allowed to work for over eight hours a day or more than 40 hours a week when school is not in session. On a school day, they can only work for a maximum of three hours a day or 18 hours per week.

They are also only allowed to work between the hours of 7a.m. and 7p.m. each day, except from June 1 to the first Monday in September.

Meanwhile, 16- and 17-year-old seasonal workers can work for unlimited hours as long as the nature of the job is non-hazardous. The Department of Labor’s Wage and Hour Division has a Fact Sheet on the Provisions for Youth Employment Under the FLSA.

#3. Tax Forms

Seasonal employers who hire seasonal workers must tick the box labeled seasonal employer on IRS Form 941. Doing so informs the Internal Revenue Service that they are not filing returns for at least one quarter of the year since they do not hire and pay workers for the entire year.

However, employers who hired and paid wages to seasonal farm workers must file Form 943.

3 Best Practices for Seasonal Employment

Before we conclude this article, we’ve listed three best practices to keep in mind to maximize the advantages of seasonal employment. Let’s see what they are:

1. Be mindful of federal and state labor laws. Take some time to research and expand your knowledge of other labor regulations that apply to your industry. Doing so ensures you don’t violate any rules or workers’ rights while employing seasonal workers.

2. Use cost-effective online tools. Practical and user-friendly online tools such as Paystub.org’s paystub generator let you use templates and create pay stubs in minutes. You can also try our built-in calculator to ensure your seasonal workers’ pay stubs reflect accurate information about their hours, wages, and deductions.

3. Update your payroll administration process. Ideally, you must include seasonal workers in your payroll process to avoid miscalculating their wages or failing to include them in your pay schedule.

Final Thoughts

Seasonal employment provides an excellent array of opportunities for both employers and employees. Businesses can manage their operational costs and consistently meet customer demands, while employees can earn extra income and gain relevant work experience.

Conversely, as beneficial as seasonal work may seem, it also comes with certain limitations and regulations that both businesses must abide by to protect their workers’ rights and enable a safe and seamless work environment for all.