The Seasonal Hire
A ski instructor hired November 15 into a position with customary annual employment of six months or less can be treated as seasonal and measured over an initial measurement period of up to 12 months.
The three things to know.
Why Seasonal Applies
Customary annual employment of six months or less, and a season that starts around the same time each year, qualifies a position as seasonal.
What the Average Shows
Working full-time for a few months and little or nothing after averages below 30 hours over a 12-month window, so the employee is not full-time for the stability period.
Offer Timing
If the average had reached 30 hours, the employee would be offered coverage for the stability period that follows, and the administrative period limits would apply.
Sources: 26 CFR § 54.4980H-3. General information, not legal advice.
A worked example.
A Ski Instructor
A resort hires an instructor on November 15 for a season that customarily runs through mid-March. The position has customary annual employment of about four months.
What the Rule Produces
The resort uses a 12-month initial measurement period. Averaged across the year, the instructor’s winter hours come to well under 30 a week, so the instructor is not full-time for the stability period.
Four steps to apply it.
1. Confirm seasonal status
Check the position’s customary annual employment.
2. Pick the window
Choose a length and start date for the initial period.
3. Measure the average
Total hours at the end of the window.
4. Apply the result
Record status and stability period.
Where it goes wrong. Using a short window that ends in the middle of the season and catches the peak.
The questions that come up next.
Would the result change with a shorter window?
Possibly. A window ending at the close of the season could show a full-time average for the months worked, which is why design matters.
Does this example mean seasonal staff are never covered?
No. It means they are judged on their measured average, not their job title.
Where does this example come from?
It illustrates the regulation’s seasonal-employee rules. Run your own facts past counsel.
What if the resort asks the instructor to return next winter?
A break that meets the rehire rule makes the return a new hire.
Do seasonal workers count toward the 50 line?
They count in the monthly figures, subject to the seasonal-worker exception.
Plan-specific questions belong with ERISA counsel, and we will bring them in.
Related pages on the look-back method.
The Temporary Placement
A staffing employer whose workers take short, uneven assignments can treat a new hire as variable hour.
Equivalencies Cannot Understate
For non-hourly employees the days-worked and weeks-worked shortcuts are not allowed if they substantially understate hours.
The Full Look-Back Guide
Every rule, example and source behind this page, in one place.
Talk it through with someone who runs this every year.
We help you choose the design, document it and reconcile the hours before the numbers reach your reporting.
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