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Defining Part-Time vs. Full-Time Workers

Building your company’s workforce requires you to strategize when structuring employee schedules. Depending on your business’s needs, you may choose employees to work part-time or full-time hours, or you may even fill your staff with a combination of the two. However, keep in mind that entitlement to different benefits makes part-time vs. full-time workers something that requires deep consideration before you create a hiring plan. This guide breaks down the distinctions between full-time vs. part-time hours and what each hiring strategy means for your company.

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Part-time vs. full-time employee classification

The Bureau of Labor Statistics has very specific classifications for how many hours is full-time and part-time. For example, BLS classifies anyone who works more than 35 hours a week at a company as a full-time employee and anyone who works fewer than 35 hours per week as a part-time employee. Each company has its own policy as well for what is considered part-time and how many hours is considered full-time. For example, some companies consider 40 hours per week a full-time job, while others may assign that status to employees working as few as 32 hours. Conversely, workers who put in 30 hours or less per week are usually considered part-time employees.

A few key places in the law, however, describe the maximum number of hours part-time employees can work before they’re legally entitled to full-time benefits. As a business owner, be sure to familiarize yourself with the following acts:

  • The Affordable Care Act: According to the ACA, employees who work for a business that employs 50 or more people and average 30 hours a week or 130 hours a month are entitled to an affordable employer-sponsored health care plan.
  • The Fair Labor Standards Act: The FLSA states that any nonexempt employees who work more than 40 hours per week work full-time hours and are entitled to overtime pay for any time they work over 40 hours.

Read more: Full-Time Equivalent (FTE): What does this mean?

How does overtime exemption influence employment classification?

The concept of overtime and exemption status has a direct relationship to whether an employee works full-time vs. part-time hours. Under the FLSA, exempt employees are always salaried and don’t have a legal right to overtime pay for hours they work beyond a standard workweek. For an employee to be exempt from this policy, you must pay them at least $455 weekly or $23,660 yearly, regardless of how many hours is a full-time job.

Exempt employees can technically be considered full-time or part-time workers, but they generally work full-time hours. By contrast, employees who aren’t exempt under the FLSA are eligible for time-and-a-half pay for every hour they work over 40 hours per week. These workers always get overtime pay, regardless of the employer’s definition of part-time vs. full-time.

Related: How to Convert Contractors to full-time Employees

Insurance for part-time vs. full-time employees

Qualifying employers are mandated by law to offer health insurance to employees who meet the hourly average requirements, no matter how many hours is considered full-time by the company itself. Many states also require employers to provide workers’ compensation insurance and unemployment insurance to all employees, whether they work part-time or full-time jobs.

Though there is usually a difference between part-time and full-time benefits packages, some companies may also give part-time employees access to extra benefits that aren’t mandated by law. This improvement in part-time compensation packages may potentially boost worker retention and help your company attract qualified candidates who move on to full-time hours.

In addition to covering required insurance for full-time employees, some employers also offer other types of insurance and contributions, such as:

  • Vision insurance
  • Dental insurance
  • Short-term disability
  • Life insurance
  • Pension plans or retirement contributions

Read more: The Difference Between Exempt vs. Non-Exempt Employee

Benefits for part-time vs. full-time employees

Some benefits, such as FMLA leave, are regulated by law, while others are up to your discretion. Employees who work more than 1,250 hours per year, an average of 24 hours per week, are eligible for FMLA leave, meaning many part-time employees don’t qualify for this benefit. States have their own laws about the minimum number of hours someone must work to qualify for paid sick leave.

Other benefits, such as paid time off, employee leave options and professional development stipends, may also be a part of your unique company policy. You may choose to offer these benefits exclusively to full-time employees or extend them to part-time employees as well. Most workers expect to receive extra benefits as a full-time employee, so a strong benefits package often proves essential to attracting dedicated full-time staff.

Pros and cons of part-time vs. full-time employees

When deciding whether to hire a part-time or full-time employee, consider your company’s unique goals and priorities.

Part-time employees are appropriate for companies that need to use flexible shift-based schedules to respond to changing consumer demand or business owners who need a limited amount of support for specific tasks. Part-time workers, however, may be detrimental to companies that need dedicated employees who produce consistent work. Likewise, part-time workers may also be a major asset when used to fill the gaps in skill sets or as support staff for those working full-time hours at specialized tasks.

Full-time employees typically commit to one workplace and make your company a top priority, making hiring for full-time hours a great choice when you require loyalty. Sometimes, however, full-time workers may be too expensive for a growing company to maintain. Additionally, full-time employees are more apt to follow directions and put their all into their jobs, while many part-time employees use their employment to pay their way through school or support themselves while working at entry-level full-time jobs in their chosen fields.

Part-time vs. full-time worker FAQs

Here are some commonly asked questions about the differences between full-time and part-time workers and their impacts on employers.

Why do part-time vs. full-time designations matter?

The difference between part-time and full-time has the potential to make or break your business due to employee classification standards within the ACA. Proper classification of workers as defined by what is considered part-time and how many hours is a full-time job keeps your company from inadvertently incurring penalties and fines from misclassification. For instance, if your company qualifies as an applicable large employer (ALE) within the context of the ACA, it must offer certain benefits to full-time employees and may incur fines if it fails to do so.

What’s the difference between contractors and part-time and full-time workers?

The difference between part-time and full-time workers isn’t as drastic as their difference from contractors. For example, those who work either part-time or full-time hours are entitled by law to set benefits, depending on their employer’s designation as a small business or ALE. By contrast, contractors have no such legal entitlements to benefits. Instead, contractors agree to terms with client employers to provide contingent or temporary labor or services. While these workers aren’t considered employees, they’re also not typically bound by the company they’re working for in terms of hours worked, so long as the job they’re hired to do gets done as agreed upon by both parties.

Further reading

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