Avoid costly mistakes when hiring seasonal workers

Thousands of seasonal workers are hired to meet holiday demand. Seasonal hiring is an ideal staffing solution, providing the business with the ability to quickly staff up and scale down when demand decreases. However, it can come with a false sense of security about employment-related liability and responsibility.

Here are five common mistakes:

1. Don't know the relevant federal and state regulations

   While seasonal employment differs from permanent employment, many of the same regulations apply. The Fair Labor Standards Act (FLSA), which regulates labor laws for minimum wage, overtime, recordkeeping, and child labor, applies to seasonal employees as do the relevant state labor laws. I-9 forms must be completed. Prohibiting employment discrimination, harassment, and retaliation applies with equal force to seasonal workers. Regulations governing classification of independent contractors vs. employees apply. Seasonal employees who are injured are eligible to receive workers compensation. OSHA holds host employers responsible for protecting the safety and health of all workers, including seasonal workers. In fact, OSHA dedicates a web section to holiday safety.

   Several federal and state laws are based on the size of the company. A few extra employees could put you over the threshold. For example, the OSHA recordkeeping law has thresholds of 100, 20 - 249, and 250 per establishment, which is based on peak employment during the previous calendar year. Each worker counts as one employee, including full-time, part-time, seasonal, and temporary workers, with some minor exceptions as specified in the regulations.

   To ensure everyone is on the same page, it's important to include the rights and responsibilities of seasonal workers in the employee handbook and to train managers on the nuances of seasonal employees.

2. Rush through onboarding

   With short employment lengths, many seasonal workers receive minimal training. Yet, there are several reasons this group is prone to injuries. Many are hired to do physically demanding work in distribution centers or transportation and many are under 25 years old and have never been exposed to forklifts or other dangerous machinery or trained on proper lifting techniques. Customer-facing retail workers often aren't trained in managing customer conflict and violence, which occurs too often.

   Others have language barriers and bilingual materials and managers are needed to ensure they understand the safety rules. Full-time managers are working long hours and at warp speed and may not have the time to provide proper supervision. Studies have shown that new workers tend to get hurt in the first few months of employment. Poorly trained workers will translate into increased work injury rates and higher comp costs.

   Regardless of the tenure of the employee, a complete orientation and training program is a best practice. If classification as a joint employer is an issue, OSHA has resources and the National Institute for Occupational Safety and Health (NIOSH) and partners published a document to help host employers protect the safety and health of temporary workers, Protecting temporary workers: best practices for host employers

3. Relax safety practices and accept shortcuts

   During the rush of the season, it takes more effort to eliminate clutter and disorganization. Yet, trips and falls, falling objects, and even fire are common hazards related to clutter. Exits and aisles become blocked. Pressure to work fast, rather than do things right, can lead to ill-advised shortcuts and serious injuries. Encouraging long hours can lead to fatigue and exhaustion, which lead to mistakes and injuries.

   While there are many "pros" for hiring seasonal workers, one of the "cons" that is frequently mentioned is that seasonal workers are less motivated to meet high-performance standards. Under pressure to manage more staff and increase production, supervisors may forego regular safety audits and inspections. Yet, proactively auditing and observing employees to confirm compliance with employer safety programs is critical to help prevent accidents, reinforce good behavior, and remind seasonal workers that safety is a priority and the responsibility of every employee. If a temporary employee violates an employer policy or engages in conduct that puts themselves or others in the workplace at risk, they should be subject to disciplinary action, up to and including termination of employment.

   Further, having documented records can help avoid OSHA citations. With the new National Emphasis Program (NEP) on Warehousing and the recent report by the DOL Inspector General that OSHA has not effectively addressed high injury and illness rates occurring in warehouses, a surge in inspections of distribution, warehousing, and storage facilities as well as high-risk retailers, is expected.

4. Don't establish at-will status

   Although seasonal employees are generally aware they have been hired on a temporary basis, you should require seasonal employees to acknowledge, in writing, that they understand they are hired for a limited duration and as "at-will" employees. The at-will status should be defined and stated in the offer letter, employment contract, and employee handbook. This protects your legal right to terminate the employee, with or without cause, at any time.

5. Fail to train managers on child labor laws

   Some seasonal workers are under age 18, which means employers need to be diligent about complying with the FLSA and state laws regarding employment authorization, hours, scheduling, and job tasks and responsibilities. A spike in child labor violations, in large part due to the tight labor market, has caught the attention of DOL, OSHA, and Congress. Even employers in industries with significant experience hiring minors are being charged with child labor violations.

   If managers aren't trained on the importance of following these rules, they may accidentally schedule a teenager for too late a shift or too many hours. While it may be obvious that minors can't operate forklifts or other heavy machinery, there are some not-so-obvious prohibitions, particularly for those under age 16. For example, loading or unloading goods on or off trucks, railcars, or conveyors except in very limited circumstances, and using ladders are prohibited. Generally, workers 14-and-15 years-old are prohibited from working in most occupations involving transportation, construction, warehousing, communications, and public utilities.

   The penalties for child labor violations can be substantial. Employers caught violating the FLSA's restrictions can be liable to pay fines up to $15,138 per minor and up to $68,801 if the violations result in the injury or death of the minor.