What is Full-Time Employment?
Determining whether an employee is full-time or part-time depends on the company’s policy and practices in defining full-time employees, aside from the definitions provided in the Affordable Care Act (ACA).
According to the American Time Use Survey, full-time employees work an average of 8.5 hours during a typical workday. So, how many hours can you expect to work if you are a full-time employee?
While many people consider 35 or 40 hours a week to be full-time, the number of hours you are expected to work can vary depending on your employer. In some cases, it may be less; for other employers, it may be more. The same rule applies to part-time work. Company policy determines the number of hours per week that it considers a part-time job.
Full-Time Work Schedules
40 Hours of Work Per Week
The standard for full-time employment has traditionally been 40 hours a week. The U.S. Department of Labor guidelines provide for overtime pay for non-exempt workers after working 40 hours. The week is typically divided into 8 hours of work.
30-40+ Hours of Work Per Week
Many employers now consider employees to be full-time when they work fewer hours (for instance, more than 30 hours, 35 hours, or 37.5 hours). Under the Affordable Care Act (ACA), employees who work 30 hours or more per week are entitled to health insurance; however, companies can set any standard they wish for full-time status and other benefits.
Some employers may define a higher number of hours in a week. For example, a 50-hour workweek could consist of five workdays at 10 hours each or an additional sixth workday.
Definition of Full-Time Work Under the Affordable Care Act (ACA)
With the introduction of the Affordable Care Act (Obamacare), the definition of a full-time employee is set as one who averages 30 hours or more a week in work. Employers with 50 or more employees are required to offer health care to full-time employees under the Affordable Care Act.
Organizations can choose a historical period of three to 12 months to designate full-time status for workers if they average 30 hours or more during that time frame. Once designated as full-time employees, employers must keep workers in that status for at least six months.
Employment Laws Regulating Working Hours
In addition to the requirements of the Affordable Care Act, individual employers are free to set criteria for their workforce. There are no federal guidelines regulating the number of hours that employees aged 16 and over can work.
The Fair Labor Standards Act states that employers must pay non-exempt employees time and a half for any hours worked over 40 in a week. Exempt employees who are salaried are not entitled to overtime pay for hours worked over 40 during the workweek.
Full-Time Jobs vs. Part-Time Jobs
Some employers have adjusted job structures and allocated more positions that require less than 30 hours a week to avoid the burden of paying benefits. The share of part-time jobs in 1968 was only 13.5% and has slightly increased to 14.3% of the workforce currently.
Indicates
Historical data also shows that employers offer fewer full-time jobs and a higher number of part-time positions during recession periods. Since the last recession, the trend towards more intensive hiring of part-time employees instead of full-time workers has continued.
Women are classified at a rate of twice that of men as part-time workers. In 2016, about 25% of women worked part-time, compared to around 12% of men, according to the Bureau of Labor Statistics.
Check Company Policy
The company policy specifies the hours that employees are expected to work. The company may set a specific number of hours and optionally outline what your work schedule is. For example, your employee handbook may specify from 9 AM to 6 PM or set 45 hours per week.
Note: Formal employment designations from employers regarding full-time employment typically range from 35 to 45 hours, with 40 hours being much more commonly considered the standard. Some companies consider 50 hours a week as full-time for exempt employees.
In some cases, particularly in startups, any number of hours may be required to get the work done. The company may not specify a standard schedule or a specific number of hours expected from employees.
Informal expectations for employees may vary significantly from the minimum hours required to classify them as full-time within the organization. If the type of work schedule is not clarified when you are interviewing for a job, inquire carefully about what is expected to consider an employee to be performing well in the company if you have concerns about maintaining a balanced lifestyle.
Ask about the hours you will be expected to work when you receive a job offer. Before accepting the offer, make sure that you can commit to the number of hours per week you will be expected to work. You will also want to know if your pay will change due to working extra hours.
Benefits for Full-Time Employees
Benefits are often provided to full-time employees, including retirement, health insurance, paid time off, and sick leave, which are not offered to part-time employees.
Note: When you are hired, you should be informed of your employment status and eligibility for the benefits offered by the company based on whether you are full-time or part-time. If your status changes, you should also be informed by your manager or human resources.
Key Takeaways
Most often, employers define what constitutes full-time work hours: the Affordable Care Act requires most employers to offer healthcare benefits to employees working at least 30 hours a week. Check the company policy before you start your job: the organization should provide a work schedule and outline expectations, including hours and pay. Some companies offer benefits for part-time jobs: although they are not required to do so, some companies may offer benefits for certain part-time positions. Check the company policy.
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Sources:
– U.S. Department of Labor. “Full-Time Employment.” Accessed June 29, 2021.
– IRS. “Identifying Full-time Employees.” Accessed June 29, 2021
– Bureau of Labor Statistics. “American Time Use Survey.” Accessed June 29, 2021.
– U.S. Department of Labor. “Overtime.” Accessed June 29, 2021.
– Indeed. “Tips for Managing a 50-Hour Workweek.” Accessed June 29, 2021.
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HealthCare.gov. “Full-Time Employee (FTE).” Accessed June 29, 2021.
– U.S. Department of Labor. Fair Labor Standards Act. “Wages and the Fair Labor Standards Act.” Accessed June 29, 2021.
– MarketWatch. “Businesses Eliminated Hundreds of Thousands of Full-Time Jobs To Avoid Obamacare Mandate.” Accessed June 29, 2021.
– Advisor Perspectives. “The Ratio of Part-Time Employed: During April 2020.” Accessed June 29, 2021.
– IZA World of Labor. “Why Does Part-Time Employment Increase in Recessions?” Accessed June 29, 2021.
– EPI. “Still Falling Short on Hours and Pay.” Accessed June 29, 2021.
– Bureau of Labor Statistics. “Percentage of Employed Women Working Full Time Little Changed Over Past 5 Decades.” Accessed June 29, 2021.
Source: https://www.thebalancemoney.com/how-many-hours-a-week-is-full-time-employment-2063404
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