What is the minimum number of hours an employee needs to work to be considered full-time?
California and federal law generally do not categorize the working hours of employees as either full-time or part-time. Such designations typically are made by the employer for benefits that are within the discretion of the employer to provide.
Although the U.S. Bureau of Labor Statistics classifies anyone who works 35 hours or more a week at a company as a full-time employee, this is solely for data gathering purposes. (Bureau of Labor Statistics Data (bls.gov))
It is typically within a company’s discretion to attach the labels “full-time” and “part-time” to its employees. For purposes of employment laws, the key is the number of hours an employee works, not whether the employer calls them full-time or part-time employees.
Voluntary Fringe Benefits
Certain benefits, such as paid holidays and vacations, are not mandated by law. Because employers are not obligated to provide these types of benefits, they have the sole discretion to define eligibility criteria if they provide such benefits. Employers can limit eligibility to “full-time employees” and define “full-time” as they wish.
For example, an employer can define a full-time employee as someone who works at least 35 hours per week. This is a company decision, not a definition required by law.
Laws with Hourly Requirements
Under most employment laws, an employee’s designation as full-time or part-time is irrelevant. Application of a law, however, may depend on the number of hours an employee works.
It is not whether the employer classifies an employee as full-time or part-time, but whether the employee works enough hours to be covered by the law.
Wage and Hour Laws
Wages and hours are regulated in California by the Labor Code and Wage Orders. The federal Fair Labor Standards Act also applies, but California law generally is stricter than federal standards.
In California, nonexempt workers must be paid overtime if they work more than 8 hours per day. It is irrelevant if the employee is classified as a part-time worker.
Family and Medical Leave
The California Family Rights Act (CFRA) and the federal Family and Medical Leave Act (FMLA) require covered employers to provide eligible employees with up to 12 weeks of unpaid, job-protected leave for covered circumstances, including the employee’s own serious medical condition, the birth or placement of a child, or care for a family member.
To be eligible, an employee must have worked for the employer for at least 12 months and at least 1,250 hours during the 12 months immediately before the date the protected leave begins.
This 1,250-hour annual requirement is equivalent to 24 hours per week. Many employers might designate someone who averages 24 hours per week as part-time.
Whether the employee is classified as full-time or part-time, the employee is entitled to leave if they meet the 1,250-hour requirement.
Health Insurance
Under the federal Affordable Care Act (ACA), covered employers are required to offer health insurance to employees who meet the average hourly requirements, no matter how the company defines full-time.
According to the ACA, employees who work for a business that employs 50 or more people and who work an average of 30 hours a week or 130 hours a month are entitled to participate in an employer-sponsored health care plan.
Keeping track of how many hours your employees work is critical. Designating those workers as full-time or part-time may be important for discretionary company policies, but the focus for compliance purposes should be on the hours worked and not the labels applied to them.
Column based on questions asked by callers on the Labor Law Helpline, a service to California Chamber of Commerce preferred members and above. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.