Wage and Hour Law

How Many Hours Is Full-Time Employment? How Many Hours Is Part-Time Employment?

Short Answer

    There is no single federal definition for what constitutes full-time employment under the Fair Labor Standards Act (FLSA). The distinction is important because employers often link benefits like health insurance and retirement plans to an employee’s full-time status. The Affordable Care Act (ACA) defines a full-time employee as someone working an average of at least 30 hours per week or 130 hours per month. This definition is used to determine when large employers are required to offer health insurance. Overtime pay is based on hours worked (typically over 40 in a week) and is not dependent on an employee’s full-time or part-time status.

Many people think that full-time employment consists of 40 hours per week. However, full-time and part-time work can depend on who you work for and where you live. The federal Fair Labor Standards Act (FLSA) does not define full-time employment or part-time employment.

Some companies cap worker hours to no more than part-time or full-time hours to limit benefits. Workers should know the state laws for full-time and part-time employees to make sure they get their full benefits. For more information about wage and hour laws, talk to an employment law attorney.

Defining Full-Time vs. Part-Time Employment

Defining full-time and part-time is crucial because it can affect employee benefits. Some benefits are only available for full-time workers. Benefits can depend on how many hours you work every week. Types of benefits for full-time workers include:

  • Health insurance
  • Retirement plans
  • Sick leave
  • Paid family leave
  • Fringe perks

Overtime Pay for More Than Full-Time Work

Overtime pay for workers depends on the number of hours worked per week. Overtime pay does not depend on your status as a full-time or part-time employee. The federal Fair Labor Standards Act (FLSA) does not define full-time employment or part-time employment. Full-time and part-time workers get similar minimum wage and overtime protections under the FLSA and state labor laws.

Under the FLSA, workers get overtime pay (time and a half) for hours worked over 40 hours in a workweek. Some states have additional protections beyond the FLSA wage and hour laws. Some states provide overtime for working Sundays or holidays or more than 8 hours in a day.

Full-Time Equivalents for Health Insurance

Under the Affordable Care Act (ACA), large employers must provide minimum essential healthcare coverage or employer shared responsibility payments to cover most full-time employees. The ACA legal definition of full-time workers is those working an average of at least 30 hours per week or 130 hours per month. Anyone working fewer hours is a part-time worker.

The ACA covers applicable large employers (ALEs). The Internal Revenue Service (IRS) calculates full-time employment (FTE) based on either:

  • Monthly measurement (on a month-by-month basis)
  • Look-back measurement (hours of service in the preceding period)

Some states require employers to offer health insurance and other benefits for full-time positions. To understand what your state and federal laws provide for full-time and part-time employees, talk to a local employment law attorney.

Not all employees get equal protection under state and federal labor laws. Some worker benefits are only for full-time workers, but not for those working part-time hours. Other benefits are available for non-exempt employees but not for exempt salaried workers. Generally, independent contractors don’t get any employment benefits.

Some employers misclassify non-exempt employees as exempt or independent contractors to avoid worker benefits. Employment classification can determine your overtime pay and benefits. The most essential employment classification determinations include:

  • Exempt vs. non-exempt employees
  • Employees vs. independent contractors

Exempt and Non-Exempt Employees

Exempt employees, including administrative, outside sales, and computer workers, generally receive a salary instead of hourly pay. They can’t get overtime pay for more than 40 hours per week. However, they are still covered by the ACA and other benefits for full-time work.

Employees and Independent Contractors

Independent contractors are not employees. Independent contractors are self-employed and work independently. Independent contractor status depends on the work, not what the employer calls the job. Whether a worker is an independent contractor or employee depends on the following factors:

  • Opportunity for profit or loss
  • Investments
  • Degree of permanence of the work relationship
  • Nature and degree of control
  • Work performed that is integral to the potential employer’s business
  • Skill and initiative
  • Additional factors

Job Security for Full-Time Workers

Most states have an at-will status for employment. This means your employer can fire you for no reason (but not for an illegal reason). At the same time, you can quit for any reason. Generally, full-time workers don’t have any additional protections against termination.

The main exceptions are union workers and workers with an employment contract. Your employment contract can determine the grounds for when your employer can fire you. Union workers with a collective bargaining agreement also have additional job security protections.

Compensation for Wage and Benefit Violations

If your employer violates state or federal employment laws, they are liable for damages. You can file a wage and hour lawsuit against your employer to recover lost wages, unpaid overtime, or lost benefits. Many workers don’t take legal action because they are worried they will lose their jobs. Employers cannot retaliate against workers for protecting their legal employment rights.

An employment lawyer can represent you in court to help you get your unpaid wages and benefits. Under the FLSA, you can get double damages for your wage and hour losses. In some cases, your employer has to pay your legal fees. For more information about your full-time and part-time employment rights, talk to a wage and hour lawyer.

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