Workers Comp for Part-Time or Seasonal Employees
Do Employers Need Workers Comp for Part-Time or Seasonal Employees?
When it comes to workers’ comp, many employers are unsure whether part-time and seasonal employees must be included in their coverage.
We have been seeing audits come back for some of our business clients for ectra premium because the owners didn not include part time or seasonal workers in their payroll estimates for their workers comp policies. This confusion can lead to costly mistakes, especially during workers’ compensation audits.
Let’s break down the requirements and explain why, unless you’re using a staffing or temp agency that covers workers’ comp, you must include part-time and seasonal employees in your policy.
Understanding Workers’ Compensation Coverage
Workers’ compensation insurance is a crucial safeguard for both employers and employees. It provides benefits to workers who suffer job-related injuries or illnesses. These benefits typically cover medical expenses, lost wages, and rehabilitation costs. For employers, having workers’ comp protects them from potentially devastating lawsuits and helps ensure they comply with state regulations.
Are Part-Time Employees Covered?
One common misconception is that part-time employees don’t need to be included in workers’ compensation policies. However, this is not the case. In most states, including Maryland, part-time employees must be covered under the employer’s workers’ comp policy. The reasoning is simple: part-time employees are just as likely to suffer a work-related injury as full-time employees, and they are entitled to the same protections.
Employers must include part-time employees in their workers’ compensation coverage and report their payroll during the workers’ comp audit. Failing to do so can result in penalties, increased insurance premiums, and even legal trouble if a part-time employee is injured and not properly covered.
Seasonal Employees and Workers’ Comp
Seasonal employees present another area of confusion for employers. These are workers hired temporarily to meet increased demand during certain times of the year, such as during holidays or peak seasons in industries like agriculture, retail, and hospitality.
Just like part-time employees, seasonal employees must be included in your workers’ compensation coverage. Even though their employment is temporary, their risk of injury on the job is the same. If you hire seasonal workers, their payroll must also be reported during your workers’ comp audit. Neglecting to include these employees can lead to the same negative consequences as omitting part-time employees.
What About Staffing or Temp Agencies?
The exception to these requirements comes into play if you hire part-time or seasonal workers through a staffing agency or temp agency. In these cases, the agency is typically responsible for providing workers’ comp coverage for their employees. However, it’s crucial to confirm this with the agency before proceeding. You don’t want to be caught off guard in the event of an injury or during an audit.
If you’re directly employing part-time or seasonal workers, you are responsible for their workers’ compensation coverage. It’s always best to clarify with the agency and ensure all parties understand their obligations.
Why It’s Essential to Include All Employees in Your Workers’ Comp
Including all eligible employees in your workers’ compensation coverage isn’t just about following the law; it’s about protecting your business and your workforce. Workers’ comp is designed to provide support when your employees need it most. By ensuring that all part-time and seasonal employees are covered, you’re safeguarding your business from potential liabilities and showing your employees that their well-being matters, regardless of their employment status.
How to Ensure Compliance
To stay compliant with workers’ comp regulations and avoid costly mistakes:
- Review Employment Status Regularly: Regularly review your employees’ status, including part-time and seasonal workers, to ensure they are covered under your workers’ comp policy.
- Keep Accurate Payroll Records: Maintain accurate and up-to-date payroll records for all employees, including part-time and seasonal workers. This will help you during workers’ comp audits.
- Communicate with Staffing Agencies: If you use a staffing or temp agency, confirm that they provide workers’ comp coverage for the employees they assign to your business.
- Consult with an Insurance Professional: If you’re unsure about your obligations, consulting with an insurance professional, like those at Huff Insurance, can provide clarity and peace of mind.
Final Thoughts
Navigating workers’ compensation requirements can be tricky, especially when dealing with part-time and seasonal employees. However, by understanding the regulations and including all eligible employees in your coverage, you can avoid penalties, protect your business, and ensure that your entire workforce is supported.
If you have questions or need assistance with your workers’ comp policy, Huff Insurance in Maryland is here to help. We’re committed to ensuring that all aspects of your coverage are in order, so you can focus on running your business with confidence.