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 enacted retirement mandates (several still phasing in):
- California — CalSavers: $250/employee at 90 days + additional $500/employee at 180 days, 1+ employees
- New York — NY Secure Choice: all 2026 deadlines passed; no penalty published, registration required
- New Jersey — RetireReady NJ: written warning, then a $100 fine, then $250–$500/employee/yr, 10+ employees
- Colorado — Colorado SecureSavings: $100/employee/yr (capped at $5,000/yr), 5+ employees
- Oregon — OregonSaves: $100/employee/yr (capped at $5,000/yr), 1+ employees
- Illinois — My Illinois Savings (formerly IL Secure Choice): $250–$500/employee/yr, 5+ employees
- Maryland — MarylandSaves: Registration required, 1+ employees
- Vermont — Vermont Saves: up to $20–$75/employee/yr, 2+ employees (pre-enforcement)
- Connecticut — MyCTSavings: $500–$1,500 per company per year (banded by size), 5+ employees
- Maine — MERIT: $20–$100/employee, 5+ employees
- Virginia — RetirePath VA: up to $200/employee/yr, 5+ employees
- Minnesota — MN Secure Choice: $100–$500/employee escalating (enacted; assessable from 2028), 5+ employees (phased rollout through 2028)
- Hawaii — Hawaii Retirement Savings: TBD, 1+ employees
- Nevada — NEST: no statutory penalty, 6+ employees (in business 3+ years)
- Delaware — Delaware EARNS: up to $250/employee/yr (cap $5,000), 5+ employees
- Rhode Island — RISavers: $250/employee (enacted; enforcement phased Oct 2026–2028), 5+ employees
- Washington — Washington Saves: launches 2027, employer deadlines proposed 2028–2029; penalty enacted but not assessable before 2030
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: A SIMPLE IRA only has to cover employees who earned at least $5,000 in any two prior years and expect to earn $5,000 this year, so many short-season hires fall outside it. The plan covers your core staff, while short-term workers who never reach the pay threshold are not required to be included.
SECURE 2.0 Act: Federal Tax Credits That Can Offset Much of the Cost
The SECURE 2.0 Act of 2022 dramatically expanded tax credits for small businesses starting new retirement plans:
- Startup Tax Credit: credits can offset much of the startup cost for eligible employers (100 or fewer employees), 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: up to $16,500 over 3 years for qualifying small businesses
For most small seasonal businesses, these credits can offset a large share of the cost of setting up and running a SIMPLE IRA for the first 3 years. The mandate exemption can come at a very low net cost — 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.
This content is for educational purposes only and does not constitute financial, tax, legal, or investment advice. State requirements and penalties are subject to change. Consult a qualified professional before making compliance decisions.
