Seasonal Employees can Mean Extra Risks—is Your New Jersey Restaurant Insured?

Restaurants are always looking for good people. If you own a restaurant on the New Jersey Shore, you know that the summer season is all-important. And, while the increase in business is great news for your New Jersey restaurant, it does mean you’ll likely need to increase your workforce.

Whether you’re hiring seasonal or full-time restaurant staff in New Jersey there are certain regulations that must be followed: all employees must provide an I-9 Employee Eligibility Verification Certificate and a W-4 Employee Withholding Allowance Certificate. All employers must report new hires to the New Jersey New Hire Reporting Center and set up the payment of Payroll Taxes including Federal Income Tax Withholding, State Income Tax Withholding, Social Security and Medicare, and Unemployment Insurance. Furthermore, employers must carry Workers Compensation Insurance for all employees—even seasonal—and must display both Federal and New Jersey labor law posters where they can be clearly seen by employees.

There is currently a shortage of restaurant workers throughout New Jersey and so, when a potential employee does come through your door it’s tempting to hire them without asking too many questions—perhaps you don’t pay as much attention to references, or look too closely at past experience. After all, you need to capitalize on the summer months; any help is better than none.

Well, perhaps, but if you are hiring workers with whom you are less familiar than you’d like, it’s even more important to pay attention to your insurance.

If a seasonal worker breaks a vital piece of kitchen equipment does your restaurant insurance cover you? If a new hire who seemed great when they first arrived turns out to be less than respectful to the customers are you insured from any potential fall-out? If it’s discovered that an employee showed false papers and is not entitled to work in New Jersey, are you liable and are you insured? If you hired a group of seasonal workers and they all quit without notice, forcing you to close for a time, is your New Jersey restaurant insured for any loss of earnings?

Even if you’ve already hired most or all of your seasonal workers, it’s still a good idea to double-check the paperwork and ensure that your restaurant insurance will cover you if something goes wrong.

It’s never good business practice to just assume your restaurant insurance is adequate and it’s never too late to check the details or changes in circumstances with your broker or agent.

For more information on top rated restaurant insurance in New Jersey contact Vozza Agency.