What is a seasonal employee?

A seasonal employee works during a predictable busy period every year, such as holidays, summer or harvest. The best seasonal programs bring the same people back.

In shortA seasonal employee is hired for a recurring peak that happens around the same time each year. Seasonal employees are employees, with the same wage, overtime and recordkeeping rules as anyone else. One rule is specific to them: under the ACA, an employer is not an applicable large employer if its workforce exceeds 50 full-time employees for 120 days or fewer during the calendar year and the employees above 50 during that period were seasonal workers (26 USC 4980H(c)(2)(B)). Because the peak repeats, the biggest gains come from planning: hiring earlier, onboarding faster and rehiring last year’s best people.

Seasonal vs. temporary

Two short-term arrangements
Seasonal Temporary
Timing Same peak every year Any limited need
Rehire Often the same people return Usually different each time
Planning Can be planned months ahead Often short notice
Typical industries Retail, hospitality, landscaping, tax prep Any

For one-off needs, see temporary employee. For a returning seasonal worker, see boomerang employee.

Full-time employees across the year504065Above 50 for about 100 days
Above 50 for 100 days, all seasonal: the exception can apply if the rest of the count works out.

Worked example: a garden center’s spring

From 40 to 65 full-time employees

A garden center has 40 full-time employees year-round. Every spring it adds 25 full-time seasonal workers for about 100 days. For those 100 days the workforce is 65 full-time employees, above 50.

Because the period above 50 is 120 days or fewer and the employees above 50 are seasonal workers, the seasonal worker exception can keep the center from being an applicable large employer, as long as the rest of the count also works out. The owner confirms the full count, including part-time equivalents, with an adviser before relying on it.

The bigger savings are operational. The center invites last year’s best 15 seasonal workers back in January, before they take other jobs. Returning staff need half a day of onboarding instead of three, and the store is fully staffed a week before the first warm weekend.

Mistakes that are specific to seasonal employees

Planning the season backwards

Start from the first busy day and count back. If the peak starts in late April, onboarding needs to finish the week before, offers need to go out about three weeks before that, and outreach to last year’s returners should start in January or February. Writing those dates on a one-page calendar keeps the season from starting with a scramble.

Plan the end too. Decide in advance how the season will wind down, who will be offered extra weeks or a permanent role, and how final schedules will be shared. A clear end date avoids the season drifting on without anyone checking hours or headcount.

Second example: a tax preparation office

A tax office adds 8 seasonal preparers each year from January to mid-April. In the past it advertised in early January and was still interviewing in February, its busiest month.

This year it contacts last year’s 8 in October: 5 agree to return. It advertises for 3 more in November, finishes hiring by mid-December, and runs a 2-day refresher for returners and a 5-day training for new staff in the first week of January. Every preparer is working clients by the time the first returns arrive.

Write the rehire list on the last dayOn the last day of the season, have each manager mark who they would hire back and why. In January, that list is your first and cheapest hiring source.

Questions people ask

What is the difference between seasonal and temporary employees?

Seasonal employees work a predictable peak each year. Temporary employees fill any limited need.

Do seasonal employees get overtime?

Non-exempt seasonal employees are owed overtime like other employees, with limited exceptions for certain seasonal businesses.

Do seasonal employees count toward the ACA 50-employee threshold?

They count, but an exception applies if the workforce is above 50 full-time employees for 120 days or fewer and the extra employees in that period were seasonal workers.

How do you get seasonal employees to come back?

Ask them before they leave, keep in touch, invite them early, and make returning easy with short onboarding.

When should you start hiring seasonal employees?

Two to three months before the peak for new hires, and earlier for returners, who often decide where to work long before the season starts.

Can a seasonal employee become permanent?

Yes. Many employers use the season as a trial and offer permanent roles to the best seasonal staff at the end of it.

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Disclaimer: This explanation of seasonal employee is general information, not legal, payroll or tax advice; rules differ by state and city and change over time, and the examples are fictional.