Hiring Seasonal Employees

3 Things You Need to Know About Hiring Seasonal Employees

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Warmer weather isn’t the only thing to look forward to as winter draws to a close. For many small businesses, the spring and summer months represent peak sales seasons. If last year’s seasonal rush left you breathless, hiring seasonal employees can help ease some of the pressure of keeping up with customer demand. If you’ve never hired seasonal employees before, there are some important issues to keep in mind.

1. Federal and state employment laws still apply

Legally, seasonal employees are entitled to the same rights and protections as regular employees. That includes the right to work in a safe environment and to not be subject to discriminatory practices or harassment. Under the Fair Labor Standards Act (FLSA), you’re required to pay seasonal employees at least minimum wage, plus overtime if they work more than 40 hours per week.

Under the FLSA, small businesses have to extend benefits required by law to seasonal employees – including worker’s compensation coverage – unless your state grants an exception for seasonal hires. You are responsible for withholding Social Security and Medicare taxes from their wages and paying in a matching amount on their behalf. In general, seasonal employees are subject to the same tax withholding rules as other employees.

2. Special rules apply to hiring minors

Approximately 23.1 million 16 to 24-year-olds joined the labor force in the summer of 2016, according to the Bureau of Labor Statistics.  Hospitality and retail sectors employ nearly half of them. If you’re thinking of hiring teens to wash dishes at your restaurant or man the cash register at the beach shop, there are certain legal guidelines you have to observe.

For example, federal law doesn’t require teens to have a work permit but some states do. Sixteen is the federal minimum age requirement for most types of non-farm work. Teens who are 16 and 17-year-olds can work unlimited hours. They can’t, however, be employed in certain occupations that are deemed hazardous by the federal Labor Law Guide.

Teens aged 14 and 15 years old can be employed outside school hours with certain conditions. For example, they can’t work more than three hours on a school day or 18 hours in a school week. They can only work between the hours of 7 a.m. to 7 p.m. Evening hours extend to 9 p.m. from June 1st through Labor Day. There are additional restrictions on the types of work that younger teens can do.

3. Rules for hiring temps

A temp agency can be a good resource for hiring seasonal employees; but it adds another dimension to the hiring process. Legally, there’s a distinction between temp workers and employees, including seasonal employees. While they’re still protected under federal equal opportunity and labor laws, you’re not required to extend benefits like health insurance or retirement benefits to temps.

Taxation also works differently with temps, depending on how you hire them. A temp hired through a staffing agency is technically considered their employee. The staffing agency is responsible for issuing their paycheck and withholding the necessary amount of taxes. If you’re hiring temporary workers directly, on the other hand, you would bear the burden of withholding and paying Social Security and Medicare taxes.

One thing you may have to be careful with is when a temporary worker strays into permatemp territory. A permatemp is someone who works for you over an extended period of time. They do the same type of work as regular employees. Depending on the size of your business and how long a permatemp is employed, you may have to grant them limited benefits with regard to things like access to a retirement plan or sick leave. Check your State Department of Labor for details.

Don’t skimp on training seasonal or temporary workers

Just because you’re hiring seasonal employees for only a few months, doesn’t mean you can put less time into their training. As you’re putting together your seasonal budget, you should be leaving room for the added cost of getting new hires up to speed. Properly trained employees, whether they be seasonal or full-time, can yield a solid return on investment if they’re helping drive sales during the seasonal months. Investing in their training can pay even more dividends, particularly if they work for your business year after year. It saves you the time and money of having to bring new seasonal staff on-board.

Building a Socially Responsible, Organic Retail Food Brand

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Rosé, sangria, cider, chai tea, strawberry daiquiri, rum and pina colada …

Do those flavors incite images of a high-end wine bar, a cozy coffee shop or a beach bar in the tropics? Guess again. Those are just some of the unique flavors Oscar William’s Gourmet Cotton Candy spins onto paper cones for weddings, fundraisers, corporate events and other gatherings.

Who they are

Oscar William’s is a family owned and run business, started in 2013 by Tasha Holland-Kornegay. However, the idea to sell cotton candy in unique and unusual flavors came from Holland-Kornegay’s 14-year-old son, Kyree. Her husband designed the small business’s name, logo, and signature outfits. Today, the family still works to develop new flavors. They include chili pepper, root beer float and banana pudding, and they travel to sell their cotton candy for their community.

In the beginning, Holland-Kornegay didn’t have a plan or a budget. She just wanted to raise whatever funds she could for her nonprofit, Partners Against Sexually Transmitted Diseases (PASTD).

“During my graduate studies, I worked at the American Sexual Health Association, answering questions on the national STD/HIV hotline,” says Holland-Kornegay. “I began to realize the seriousness, and alarming rate of the HIV/AIDS epidemic within countless communities throughout North Carolina. I was wracking my brain one day on trying to figure out ways to raise funding for HIV/AIDS awareness after writing grant [proposal] after grant [proposal] with little success.

How they did it

She launched the cotton candy company with less than the $1,000 she had in the couple’s bank account. For the first few years Oscar William’s was just breaking even. But, thanks to guerrilla marketing and social media, their business has now grown to becoming profitable. They still give 10 percent of the profits they make to PASTD.

Learning to market Oscar William’s was enjoyable, says Holland-Kornegay, and community was key. If it weren’t for the community she built around her brand, she says, the company wouldn’t be as successful they are today.

“Hitting the streets, we went out and offered the product to the public. Lots of networking; sending out emails to let others know about us,” she says. “[We] created a buzz in the neighborhood and offered lots of sampling.”

In addition to local area events and promotions, Holland-Kornegay built a group of followers on Facebook. Oscar Willam’s leverages it to recap events, give fan shout-outs and survey new cotton candy flavors.

Facebook took notice and included Oscar Willam’s as part of their Facebook Stories series.

“Our business has a community business feel,” says Holland-Kornegay. “The people invested in our mission and our product. My advice for other entrepreneurs is to make sure your customers feel connected, share your stories with them, and let them in on the process. Let the community grow with you and your business.”

Their cotton candy business is profitable now, but it took the Holland-Kornegay family persistence, patience and diligence to grow into what they are now. “You can be scared, but you can’t let fear hold you back,” says Holland-Kornegay. “Take a deep breath and DO IT!”

5 Ways to Get Your Landscaping or Subcontracting Business Ready for the Spring Home Buying Season

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When the spring home buying season begins heating up, that can be good news if you own a landscaping or subcontracting business. As sellers prepare to put their homes on the market, there’s a good chance they may be looking for help with renovations, repairs or simply sprucing up their property’s curb appeal. Capitalizing on those opportunities begins with doing a little spring cleaning of your own to make sure your business is ready for the potential uptick in demand as the season gets underway.

1. Update your website

If it’s been some time since you’ve made any changes or updates to your site, ask yourself if there’s room for improvement.

For example, does your site clearly identify the services your landscaping or subcontracting business offers? Are your rates up to date? Are your logo and contact information prominently displayed, or is there a contact form that home sellers can use to reach out to you quickly? Does your site include recent testimonials from previous customers?

You may also consider adding a blog component to your site if it doesn’t have one already. If you’re not sure what to post, think about topics a home seller would be searching for. If you run a subcontracting business, for instance, a brief post discussing the home renovations that yield the highest return on investment may catch a local seller’s eye.

2. Evaluate your tools and equipment

When you’re in the landscaping or subcontracting business, making sure your tools and equipment are in good working order is a must. If you have something that can’t be repaired or you don’t think will last through the season, now’s the time to think about replacing or updating it.

If you don’t have substantial cash reserves because business was slow through the winter, small business financing may be a solution. With financing, you can get the working capital you need to purchase equipment, tools or supplies now, rather than having to wait until sales begin to pick up. Just remember to compare financing options carefully to find the one that’s best suited to your business needs.

3. Fill out gaps in your crew

Having enough workers to meet demand is just as important as making sure you have the right equipment. If you’re a solo subcontractor with no employees, it may not matter much but it’s a different story if you run a landscaping or painting company. After all, you don’t want to suddenly see your schedule fill out with appointments and have no one hand to help you fulfill them.

Again, this is where financing could provide the funds you need to hire and train seasonal, part-time or full-time workers. Bear in mind that if you’re hiring seasonal employees, you’ll still need to follow federal and state labor laws for those workers.

4. Formulate your spring operating budget

The spring home buying season may bring higher revenues but it may also result in higher expenses — something you could be planning for ahead of time. Mapping out a budget for what you anticipate coming in and out of your business through the spring can be helpful in maintaining a positive cash flow.

If you’ve been keeping accurate records, your expenditures and sales data from the previous spring can give you a start point for estimating this year’s budget. You can use those numbers to create a sales forecast and make any adjustments for expenses that may have increased or decreased over the last year. If you’re thinking of tapping into financing, remember to factor in those costs as well.

5. Step up your marketing efforts

Building buzz for the spring home buying season means attracting attention to your landscaping or subcontracting business when sellers are looking for ideas and information. The more avenues you’re willing to explore, the more opportunities you may have to connect with homeowners who need the services you have to offer.

For example, you may consider making an appearance at home & garden shows in your area. You can ask for referrals from existing clients, volunteer to teach a class at your local community college or library on a topic home sellers would be interested in, and establish a presence on social media channels or forums where sellers are likely to spend time.

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