An FLSA overtime exemption covering amusement parks, ski resorts, summer camps, and other recreational establishments that do not operate for more than seven months in any calendar year.
Why Seasonal Amusement Exemption matters for employers
Businesses that qualify for the seasonal amusement exemption are not required to pay overtime under the FLSA to any of their employees, regardless of hours worked. To qualify, the establishment must either operate for no more than seven months in any calendar year, or it must demonstrate that average receipts during its peak six months are at least three times the receipts of its six lowest months.
Theme parks, ski resorts, summer camps, water parks, and seasonal tour operators frequently rely on this exemption. The exemption covers all employees at qualifying establishments, including salaried managers and hourly ride operators alike. State overtime laws may not follow the federal exemption, so employers must check applicable state requirements.
How BEG handles Seasonal Amusement Exemption for clients
BEG Managed Payroll handles Seasonal Amusement Exemption as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to Seasonal Amusement Exemption on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage Seasonal Amusement Exemption themselves?
No. A managed payroll provider handles Seasonal Amusement Exemption as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if Seasonal Amusement Exemption is handled incorrectly?
Errors related to Seasonal Amusement Exemption can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle Seasonal Amusement Exemption for managed payroll clients?
BEG tracks, calculates, and remits everything related to Seasonal Amusement Exemption as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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