Can Seasonal Holiday Employees Get Unemployment?

Tis the season! Or is it? As the calendar inches towards Thanksgiving and the danger of an early exit from Whamageddon looms, businesses look forward to a robust holiday season to finish the year with a bang. Many choose to bolster their staffing with seasonal workers to help with increased demand, volume, or orders to fill.

Who Are Seasonal Workers?

These seasonal employees include college students who are home for a month or so, retirees looking for part-time work, and anyone who wants to make a few extra bucks. Despite working for a limited duration, they're not considered part-time employees, nor is it part-time employment. Seasonal work carries its own classification.

People dressed as one of Santa's elves or helping a delivery driver with their increased holiday package load is a common conception of what a seasonal worker is, but it's also an incomplete one. Seasonal work is usually considered any employment that meets both of the following conditions:

• Employees in the position typically work for a base period of six or fewer months
• The period of employment begins at approximately the same times of the year

Seasonal workers differ from temporary workers due to these distinctions. A temporary job might be working on a construction site or under contract as an independent contractor.

Seasonal work includes employees such as lifeguards in areas with limited swimming seasons, agricultural harvesters, king crab fishermen, and even some income tax preparers. If the employment happens at approximately the same time each year and is of limited duration, it's seasonal work.

What Benefits and Rights Do Seasonal Workers Have?

Given the short duration of most of these jobs, it's natural to wonder if these ex-employees meet the eligibility requirements for unemployment benefits and other perks. Are seasonal workers critical? Absolutely. Many have skills not easily replaced and their labor fills a need. Does this mean that seasonal workers have access to the same benefits as those with full-time work?

To put it simply — no. While unemployment insurance benefit qualifications vary by state, most require workers to have worked steadily for at least a year or have earned a certain amount during their period of employment. Under IRS, Department of Labor, and Treasury department regulations, employers aren't required to extend Affordable Care Act enrollment to seasonal workers.

For the most part, employers are under no obligation to give seasonal workers paid sick days, holidays, or vacation days. Some states have increased protections for seasonal workers, so check your local laws.

Given the six-month cap on employment, it's rare for seasonal employees to have enough work hours (a minimum of 1250) to become eligible for the federal Family and Medical Leave Act (FMLA). So why should workers bother with seasonal employment?

Seasonal jobs can help when there's a lack of work in your regular field, after a layoff, or when your unemployment compensation has run out. It can supply income while you conduct a job search. Some seasonal work carries perks such as employee discounts, holiday pay bonuses, and the chance to perfect your tan.

Also, money is money. While your employer may not have to provide you with the benefits their full-time employees enjoy, they still have to pay you at least the minimum wage of your state.

In addition, the labor laws regarding overtime apply to all non-exempt employees. This includes seasonal workers. Federal overtime standards, as set by the Fair Labor Standards Act (FLSA), state that any employee who works more than eight hours in a single day or 40 hours in a workweek (seven consecutive 24-hour periods) is required to be paid for all overage at one and a half times their regular pay rate.

There's no federal requirement for extra pay on weekends or holidays, but organizations have the option to offer increased pay as an enticement or a bonus. Some state laws have special overtime provisions as well, such as California's mandate of double the employee's pay rate for any hours worked past 12 in a single workday.

Seasonal work is an important part of our country. It connects people looking for extra income with businesses that need a temporary expansion of their staff. Summer jobs are a rite of passage for young adults trying to figure out what they want in a career. While seasonal work doesn't offer unemployment benefits, it might be a stepping stone to a job that does.

Related Resources:

• 2024 Year-End Small Business Owner’s Checklist (FindLaw's Law and Daily Life)
• Employer Guide to Employee Benefits (FindLaw's Learn About the Law)
• Deducting Meal and Entertainment Expenses (FindLaw's Law and Daily Life)