Consider these questions before hiring workers for holiday rush
Are you on the hunt for extra employees to help get you through the busy season?
While retailers may be hiring seasonal staff, other businesses may be as well — call centers, snow removal operators, furnace companies, delivery services, caterers, banquet halls, restaurants, etc.
If you are looking to add short-term staff and are unaccustomed to hiring seasonal employees, here are a few answers to frequently asked questions to help provide federal regulatory guidance. (Note: Check your state laws to further maintain compliance.)
Q
uestion: How many hours may an employee work in a given week? A nswer: The Fair Labor Standards Act (FLSA) does not limit the number of hours per day or per week that employees age 16 years and older can work. However, be aware that employers are required to pay covered non-exempt employees at least the federal minimum wage for all hours worked, and overtime pay for all hours worked over 40 in a work week. Also, keep in mind any jobs deemed hazardous, such as driving a snow plow truck, may not be performed by employees under age 18.
Q
If business slows down, can an employee’s hours be changed?
A
The FLSA imposes no restrictions, other than child labor laws, on the scheduling of employees age 18 and over. Therefore, an employer may change an employee’s work hours without giving prior notice or obtaining the employee’s consent (of course, changes may be limited by prior agreements made).
Q
How much notice is required when we’re getting ready to lay off employees at the end of our busy season?
A
The FLSA has no requirement for notice to an employee prior to termination or layoff. Some states, however, may have requirements for employee notifications, usually for mass layoffs of at least 25 or more employees from a single location at the same time.
Q
Are prizes, rewards and incentives taxable income?
AUnder the Internal Revenue Service (IRS) guidelines, cash, gift certificates, gift cards and gifts with large dollar amounts (such as a television) must always be considered as taxable income to employees. Those gifts are also wages that likely must be counted when calculating
overtime due. If you’re looking to reward seasonal staff, perhaps host a pizza lunch or coordinate a potluck meal.
The bottom line is this: Employers may increase staffing to accommodate a seasonal uptick in business. When doing so, keep all labor laws — federal and state — in mind. Michelle Higgins is an associate editor with J. J. Keller & Associates, a nationally recognized compliance resource firm. Higgins specializes in business topics such as benefits and compensation, and the Family and Medical Leave Act. She is the editor of J. J. Keller’s BottomLine Benefits & Compensation newsletter and its Wage & Hour Compliance manual. For more information, visit www.jjkeller.com/hr and www.jjkellerlibrary. com.