What is seasonal employment?

Seasonal employment is temporary work performed to meet the short-term needs of an organization during certain times of the year, such as:

• Businesses that are only open part of the year, such as ski resorts
• Businesses that need additional workers during busy periods, as many retailers do during the holiday shopping season

Most seasonal employment is part-time, although some full-time positions are also available. Depending on the employer, location, and time of year, a seasonal job may last only a few weeks or continue for several months. Seasonal employment does not necessarily include any year-round jobs.

Seasonal employment: benefits for employers

Seasonal employment helps employers hire employees more efficiently. They don't have to keep seasonal workers on the payroll during slow times of the year when they aren't needed.

In addition, because most seasonal workers are part-time employees, they usually receive fewer benefits,  further reducing labor costs  . During the holiday season, seasonal workers can easily replace absent employees and keep the organization running smoothly.

Why do employees prefer seasonal employment?

Seasonal employment can be a great option for unemployed workers, helping them pay the bills until they find a permanent job. Since seasonal work is often done outside of regular business hours, it is often a good option for people looking for extra income from a second job.

Seasonal employment can also be a stepping stone to a permanent job. It's a great opportunity for workers to find their footing, gain valuable experience, and prove their worth. Many businesses vet their seasonal workers to find good candidates for a permanent job.

Examples of Seasonal Employment

Seasonal employment can occur in any industry, but it is especially common in sectors that see an increase in the number of customers at certain times of the year. Here are some examples of seasonal employment:

• Hotels and resorts  hire temporary workers for the summer, when many families vacation from traditional American schools.
• Theme and amusement parks  hire seasonal employees to work from the days they open in the spring until they temporarily close operations in the late fall.
• Schools and summer camps  hire additional teachers and counselors to facilitate summer sessions with specific start and end dates.
• Tax preparation companies  hire CPAs or trained tax professionals to work from January through the April tax deadline.

Keep in mind that  the employment status of seasonal workers  can vary between employers. Seasonal workers may work full-time or part-time, depending on their agreement with their employer.

How long does seasonal employment last?

Seasonal employment has no set duration and can last anywhere from a few weeks to several months. Some employers have concrete start and end dates in the employment contract. This is often the case with seasonal employment that involves specific programming (such as summer camps where campers arrive and leave on specified dates).
Other times, employers will hire more employees around the time they expect customer traffic to increase and let employees go when it historically begins to decrease. In these cases, employers may have a specific start and end date in mind, but they may not disclose it to employees or the public.

Ultimately, seasonal employment is based on the needs of a particular employer. There are no federal laws governing the duration of seasonal employment, so employers are free to begin and end employment as they wish.

Part-time vs. seasonal employment

Part-time employees are generally considered part of the permanent workforce. They  work fewer than 30 hours per week  or 130 hours per month. However, they usually do not have the general expectation that they will be let go at the end of a certain time frame.

Seasonal employees may work part-time or full-time, depending on the needs of the employer   . In the case of seasonal employment, both the employee and employer understand that regardless of the employment situation, the positions are not permanent and employees will likely not work for the employer all year round.

Laws and Regulations Related to Seasonal Employment

Seasonal employment is covered under the federal government's  Fair Labor Standards Act  , which establishes minimum wages, overtime pay, recordkeeping and youth employment standards in private industry and federal, state and local governments.

Employers must pay seasonal workers either the federal minimum wage — which is currently $7.25 an hour — or their state or local minimum wage, whichever is higher.

People who work more than 40 hours a week during seasonal employment are entitled to overtime pay for the extra hours. The overtime pay rate is one and a half times their regular pay rate.

Federal  child labor regulations  apply to seasonal employment. Children ages 14 and 15 may work only a limited number of hours each week in permitted occupations. Starting at age 16, there is no federal limit on the number of hours that may be worked. However, 16 and 17 year olds are not allowed to work in occupations declared hazardous by the Secretary of Labor.

The same tax withholding rules apply to seasonal employees as to other employees. For information about your tax responsibility as an employer, see the Internal Revenue Service's  Businesses with Employees  page.

State and local employment and tax rules vary considerably, so it is important to check with the appropriate offices in your area.