If you operate a seasonal hotel, motel, restaurant, or hospitality business in any of 17 U.S. states, there’s a good chance you’re already subject to a state retirement mandate — and possibly out of compliance without knowing it. This complete guide explains what state retirement mandates are, which states enforce them, how seasonal businesses are affected, and the fastest path to compliance for small employers.
What Are State Retirement Mandates?
State retirement mandates are laws that require employers who don’t offer a qualifying retirement plan to automatically enroll employees in a state-run payroll-deduction IRA. As of 2026, 17 states have active mandates:
- California — CalSavers: $250–$500/employee/yr penalty, 5+ employees
- New York — NY Secure Choice: July 15, 2026 deadline for 10–14 emp
- New Jersey — RetireReady NJ: $100–$500/employee/yr, 25+ employees
- Colorado — Colorado SecureSavings: $100/employee/yr, 5+ employees
- Oregon — OregonSaves: $100/employee/yr, 10+ employees
- Illinois — IL Secure Choice: $250–$500/employee/yr, 5+ employees
- Maryland — MarylandSaves: Registration required, 1+ employees
- Vermont — Vermont Saves: $20–$75/employee, 5+ employees
- Connecticut — MyCTSavings: $500–$1,500/employee, 5+ employees
- Maine — MERIT: $20–$100/employee, 5+ employees
- Virginia — RetirePath VA: $200/employee/yr, 25+ employees
- Minnesota — MN Secure Choice: $100–$500/employee, 5+ employees
- Hawaii — Hawaii Retirement Savings: TBD, 10+ employees
- Nevada — NEST: TBD, 5+ employees
- Delaware — Delaware EARNS: $250/employee/yr max $5k, 5+ employees
- Rhode Island — RISavers: $250/employee, 5+ employees
- Washington — Washington Saves: Voluntary program
Use the penalty calculator at RetirementMandate.com to estimate your state-specific exposure.
Why Seasonal Businesses Are Especially Vulnerable
Most mandate laws don’t care that your hotel only operates May through October. The threshold tests — typically 5, 10, or 25 employees — are measured at peak headcount, not annual average. This means:
- A beach motel with 4 year-round staff and 30 summer employees is covered by most mandates
- A ski lodge that hires 15 workers December–March and keeps 3 year-round crosses most thresholds
- A summer restaurant with 12 seasonal servers is subject to mandates in states with 10+ thresholds
- Even businesses with no year-round employees can be subject to the mandate if they hit the threshold seasonally
The consequences of ignoring this are real. Penalty notices, retroactive fines, and enforcement audits are increasing across all mandate states.
The Exemption: Private Qualifying Retirement Plans
Every state mandate includes an exemption for employers who already offer a qualifying private retirement plan. Qualifying plans include:
- SIMPLE IRA — Best for small seasonal businesses (5–100 employees)
- 401(k) — Better for larger operations with more admin resources
- SEP IRA — Good for sole proprietors and very small teams
- SIMPLE 401(k) — Hybrid option for slightly larger seasonal businesses
Key benefit for seasonal employers: SIMPLE IRAs allow you to exclude employees who work fewer than 1,000 hours per year. This protects you on true seasonal workers — the plan covers your core staff while leaving out the summer temp workforce.
SECURE 2.0 Act: Federal Tax Credits That Make This Essentially Free
The SECURE 2.0 Act of 2022 dramatically expanded tax credits for small businesses starting new retirement plans:
- Startup Tax Credit: 100% of plan startup costs, up to $5,000/year for 3 years
- Employer Contribution Credit: Up to $1,000/employee/year for businesses under 50 employees (phases out 51–100 employees)
- Auto-enrollment credit: Additional $500/year for 3 years for plans with automatic enrollment
- Total potential credits: $16,500+ over 3 years for qualifying small businesses
For most small seasonal businesses, these credits cover 100% or more of the cost of setting up and running a SIMPLE IRA for the first 3 years. The mandate exemption effectively becomes free — while also providing a genuine retirement benefit to your employees.
Getting Started: The Kandelaki Solutions Process
Kandelaki Solutions specializes in helping seasonal and hospitality employers in all 17 mandate states navigate compliance quickly and cost-effectively:
- Free compliance audit — we confirm your mandate exposure in your specific state
- Plan recommendation — SIMPLE IRA, 401(k), or SEP based on your workforce profile
- Complete setup — we handle all paperwork, custodian selection, and employee enrollment
- SECURE 2.0 credit application — we document and file for all available credits
- Ongoing compliance — annual reviews to keep you in exempt status
Browse state-specific guides at RetirementMandate.com/states/ or book a free audit today.
