Part-time vs. full-time: Differences and considerations for employers

Classifying employees correctly can be a challenge. Employers who misstep risk penalties, legal disputes, and damage to team morale. The IRS and federal agencies have clear guidelines, but the nuances of employment classification can still puzzle even seasoned HR managers.

In this article, we’ll explore part-time vs. full-time hours, provide clarity to answer the question, “what are part-time hours,” and share why defining these classifications properly is crucial for employers—especially applicable large employers under the ACA. We’ll also reveal some unexpected implications, like overtime and health insurance eligibility, that can spark major headaches if overlooked.

This guide will help ensure you’re staying on the right side of regulations, including the Affordable Care Act, the Fair Labor Standards Act, and the IRS definition for full-time equivalents.

How many hours is considered part-time?

For many employers, the big question is: What are part-time hours and how do we define part time in a consistent way?

Typically, part-time employees log fewer hours than full-time employees. While there’s no single federal standard that universally defines part time, the IRS often references 30 hours per week as the threshold for health insurance coverage obligations under the Affordable Care Act (ACA). But in practice, many employers consider part-time employees to be those who work fewer than 35 hours per week.

In day-to-day terms, part-time job hours per day might average around four to six hours, though some part-time employees might work longer shifts on fewer days. The ultimate decision often rests on employer policies, the structure of the workweek, and business needs. If your employee handbook is defining part time at 25 or 29 hours per week, you’ll want to ensure it aligns with federal guidelines for overtime and health insurance requirements.

Many employers who are hiring part time find flexibility appealing: They can schedule part-time workers around peak times without providing full-time benefits. However, remember that part-time employees can trigger ACA considerations if your company is an applicable large employer—meaning you have 50 or more full-time equivalents. In those cases, you’ll need to keep track of total hours worked per calendar month for health insurance offerings.

How many hours is considered full-time?

So, how many hours is full-time? Though different industries and organizations have variations, full-time typically falls between 35 and 40 hours per week. The IRS also uses 30 hours per week as a marker for certain provisions, notably in the ACA, which can cause confusion because some organizations treat 30 hours as the threshold for full-time employment, while others use 35 or even 40 hours.

Many employers define full time in their policies based on hours per week to facilitate standardized employee benefits such as health insurance, paid sick leave, and retirement plans. In addition, full-time hours often come with a salary or sometimes an hourly wage that qualifies the employee for overtime pay if they exceed 40 hours per week, unless they’re exempt employees under the Fair Labor Standards Act.

If you’re unsure how your organization defines full-time status, check your employee handbook and make sure it aligns with federal and state guidelines. Keep in mind that misclassifying an employee as part-time when they work full-time can result in liability for back pay, overtime, and health insurance benefits.

What's the difference between part-time and full-time?

While part-time employees and full-time employees both contribute significantly to the workplace, they differ in certain key ways. Understanding these differences helps employers make informed decisions about hiring strategies, payroll management, and compliance with federal regulations.

1. Hours worked

One of the most obvious differences is the number of hours worked (either during the workweek or hours per month). 

Part-time employees typically clock fewer than 30–35 hours per week, while full-time employees average 35–40 hours per week. Monitoring working hours is critical to staying compliant with the Fair Labor Standards Act and the ACA—especially for applicable large employers who must offer health insurance to their eligible full-time employees.

2. Cost of employment

Part-time employees generally represent a lower immediate cost of employment because employers might not have to extend the same benefits package they give to full-time employees. However, costs can increase if a company must pay for training multiple part timers to cover the same workload that could have been handled by fewer full-time employees. On the flip side, full-time employment often includes higher wages or salary and robust benefits, leading to higher overhead for employers.

3. Benefit requirements

Under the Affordable Care Act, employers labeled as applicable large employers must offer health insurance to eligible full-time employees (those working 30 or more hours per week, or 130 hours per month). 

This requirement typically does not extend to part-time employees, although employers may choose to offer them health insurance, or other employee benefits, such as retirement plans, to stay competitive. Additionally, paid leave policies (like paid sick leave) can differ based on hours worked.

4. Legal compliance

From overtime rules to minimum wage laws, the regulatory framework can vary for part-time employees and full-time employees—especially if employers have exempt employees in the mix. The Fair Labor Standards Act sets overtime standards for non-exempt employees, which can apply to both part-time and full-time statuses if they exceed 40 hours in a workweek. And worker misclassification can lead to substantial penalties and overtime pay backlogs.

5. Payroll management

Managing payroll for a mix of part-time employees and full-time employees can be complicated. Employers need to track hours meticulously, handle different wage rates, factor in accrual of paid time off, and manage health insurance contributions where applicable. Hiring part time might save on immediate payroll expenses, but the administrative effort can be higher if turnover among part-time workers is frequent.

Full-time vs. part-time: Pros and cons for employers

Before hiring or reclassifying any employee, it’s a good idea to weigh the advantages and disadvantages that come with full-time and part-time classifications.

Part-time pros

1. Cost savings: Fewer benefits and lower paid time off allocations help employers reduce cost of employment.
2. Increased flexibility: Part-time employees can cover peak business hours without committing to a 40-hour workweek.
3. Broader talent pool: Part-time jobs can attract workers like students, retirees, or those seeking part time work for life-balance reasons.

Part-time cons

1. Limited availability: Part timers may not be around for certain critical work hours or urgent tasks.
2. Lower commitment: Some part-time workers might not feel as invested in the organization as full-time team members.
3. Training costs: Employers may spend more on training multiple part-time employees to fill the equivalent of one or two full-time roles.

Full-time pros

1. Higher commitment and availability: Full-time employees are generally available for more hours and can integrate seamlessly into teams.
2. Easier team integration: With a standard 40-hour workweek, full-time employees often have a deeper understanding of company culture and goals.
3. Better for long-term planning: Full-time employment can reduce turnover and foster loyalty, so employers benefit from stable, long-term employees.

Full-time cons

1. Higher costs: Health insurance, retirement plans, and other benefits can be expensive for employers offering full-time roles.
2. Legal and administrative burden: Employers have to adhere to more stringent ACA regulations, overtime tracking, and payroll obligations.
3. Less flexibility: ​​It’s harder for employers to adjust staffing levels with full-time employees, making quick changes in scheduling more difficult.

Part-time vs. full-time laws and regulations

Regulations around part-time employment and full-time employment primarily hinge on hours and benefits.

Under the Fair Labor Standards Act (FLSA), non-exempt employees earn overtime if they exceed 40 hours in a workweek.

The Affordable Care Act (ACA) mandates that applicable large employers—businesses with 50 or more full-time equivalents—must offer health insurance to any full-time employee who works at least 30 hours per week or 130 hours per month.

Failure to comply with either law can result in steep penalties.

Additionally, federal and state laws vary on wage and paid sick leave requirements. Some jurisdictions mandate certain benefits even for part-time employees, which makes it critical to consult your local statutes and make sure your company policies comply with any regulations that apply where your employees work—especially if you have a remote or distributed workforce.

Why is part-time vs. full-time employee classification important?

Classifying employees accurately helps employers avoid overtime miscalculations, non-compliant health insurance offerings, and mismanaged retirement plans. With the IRS tracking hours per week and the ACA imposing fines on applicable large employers not offering health insurance to eligible full-time staff, the stakes are high.

If you’re an employer who has incorrectly labeled full-time employees as part-time employees, you could face back taxes, payroll audits, and lawsuits over unpaid overtime pay or missed benefits. Similarly, failing to offer health insurance to full-time equivalents can trigger ACA penalties. 

Classify and manage employees with Rippling

Make it easier to see and manage part-time and full-time employees with Rippling.

Rippling helps you staff with confidence with labor planning, customizable scheduling rules, smart alerts, and more. 

It’s never been easier, or faster, to build out work schedules, thanks to intuitive controls, drag-and-drop functionality, and real-time visibility into staff certifications, availability, and more.

And Rippling safeguards your business from compliance risks by automatically enforcing overtime, meal breaks, and other federal, state, and local labor laws based on each employee’s work location.

Part-time vs- full-time FAQs

Is it better to be part-time or full-time?

It depends on the employee’s priorities and the employer’s needs. Part-time jobs can be a better fit for those seeking flexibility or supplemental income, while full-time roles are often appealing for health insurance, retirement plans, and stable salary or wage structures.

How do you schedule part-time vs. full-time employees?

Scheduling involves balancing business needs, hours per week, and the personal availability of your employees. Full-time employees typically work 35-40 hours in a standard workweek, while part-time employees can fill shifts during peak or seasonal times. Using a scheduling tool that tracks hours worked and staff availability helps ensure compliance with Fair Labor Standards Act regulations regarding overtime, breaks, and other legal issues.

How many hours is part-time a day?

There is no single magic number that defines part time for each day, but many employers structure a part-time job around four to six hours per shift, depending on operational demands. Just make sure to keep monthly or hours per week tallies if your organization is subject to ACA regulations as an applicable large employer.

This blog is based on information available to Rippling as of January 8, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.