Around the holiday season, as an investment in business growth, many businesses hire employees on a seasonal basis. However, without preparation, an employer’s potential for holiday profits may be reduced by the cost of paying Unemployment Compensation benefits.
As most employers are well aware, when an employee’s job ends through no fault of the employee, such as seasonal employment, employers may be liable for claims of Unemployment Compensation. However, a savvy employer may avoid liability by using the Unemployment Compensation Law eligibility criteria to its advantage.
Under this law, an employee generally is not eligible to receive Unemployment Compensation where the employee worked fewer than “18 credit weeks” during a “base year” or earns 50.5 percent or more of their “base year wages” in one quarter. So, to avoid the cost associated with Unemployment Compensation, employers should limit seasonal employees’ eligibility for benefits by limiting the amount of time they work. For example, an employer could hire different individuals during the holidays than during the summer, or other times during the year when businesses may require additional help.
To make sure your seasonal hires are investments in business growth, as opposed to a source of liability, contact a knowledgeable employment attorney to help you prepare.
The Eastern Pennsylvania Employment Log (EPELog) is a publication of the KingSpry Employment Law Practice Group. Jeffrey T. Tucker, Esquire, is our editor-in-chief. EPELog is meant to be informational and does not constitute legal advice.
