In today’s dynamic workforce, businesses often rely on seasonal employees to manage fluctuating demands during peak periods. While this practice offers flexibility, it also poses unique challenges, particularly when the temporary nature of these roles leads to questions about unemployment benefits. Understanding the nuances of seasonal employment and its impact on unemployment claims is essential for employers to navigate this complex landscape effectively.
What is Seasonal Employment?
The IRS defines a seasonal employee as someone who is hired for a specific season with a predetermined start and end date that occurs at the same time each year, with employment expected to last 6 months or less.
Implications?
While seasonal employees understand that their position is temporary, it is best practice to specify the duration of employment at the start of the relationship and have the employee acknowledge, in writing, that they understand it is a temporary assignment.
At the conclusion of the seasonal assignment, employees may be entitled to unemployment benefits but often do not seek them due to the temporary nature of the assignment. If the employee is out of work through no fault of their own—meaning that the assignment ended and there was no further work—they may be eligible for benefits if they meet the other qualifications of unemployment. These qualifications include minimum length of employment, minimum base period earnings, and reason for separation.
What’s Next?
As an employer, the overall unemployment claims risk may be low due to the short duration of seasonal employment, but it is still important to take steps to reduce potential exposure. For instance, you may offer continuing work to a seasonal employee if it is available. If they decline, they likely will not be eligible for unemployment benefits should they file a claim. Be sure to mention the job refusal when responding to the claim. As with all employee types, maintaining thorough records helps ensure only qualified claimants receive benefits.
If you cannot offer a seasonal employee a permanent full or part-time position, the employment relationship will end, and the employee has the right to file for unemployment benefits—even though they were aware from the start that this was a short-term arrangement.
Other Layoff Situations
At some point, you may be faced with the difficult decision to reduce your workforce. Similar to seasonal layoffs, these employees may qualify for unemployment benefits if they are out of work through no fault of their own.
Alerting your unemployment claims manager, Thomas & Company, to the type of layoff occurring can help provide key insights to the state when responding to any inquiries. While these types of separations are generally not protestable, details about the layoff or reduction in force can help the state make the correct determination on eligibility for benefits.
For example, if the layoff type is a furlough or temporary lack of work, the state may ask for the return-to-work date. If the individual continues to file for benefits after the given date, they may launch an investigation.
Handling Unemployment Claims
For seasonal workers, or any employees impacted by a layoff, we are ready to help make the claims process as smooth as possible.
Employers experiencing, or anticipating, a layoff should reach out to your representative at Thomas & Company or 501(c) Services as soon as possible. Early communication allows us to work together to minimize the burden of responding to these layoff claims.
Workforce Reduction Guide
Employers often may have questions about the impact of a layoff or reduction in force. Finding all this information in one place can be difficult but having it readily available is a valuable resource when preparing for a layoff.
501’s Workforce Reduction Guide provides information for both employers and employees, including details on state websites, filing procedures, weekly benefit amounts, benefit duration, partial benefits, and more. Get your copy here today!
501 members who are in need of assistance with an upcoming workforce reduction can contact us here.
About Us
For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.
Contact us today to see if your organization could benefit from our services.
Are you already working with us and need assistance with an HR or unemployment issue? Contact us here.
The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources. Some information was provided by our friend, Darby Gibson, Client Marketing & Insights Specialist, at Thomas & Company.
