Decoding the Divide: Part-Time vs. Full-Time Employment

One of the biggest distinctions to make in employment types comes down to part-time vs. full-time employment. Businesses may want to have a mixed workforce or focus on one type of employment or the other, depending on their needs. Understanding what differentiates the two and what those differences mean for everyone involved can help you make the best possible decision. Let’s look at both options more closely.

Defining Part-Time and Full-Time Employment

The federal government does not provide clear definitions of part-time or full-time employment, which means defining the work hours and responsibilities of employees under each designation typically falls to the business itself. The core differences between part-time and full-time work come down to the average number of hours worked per week and the benefits and rights available to employees based on their work status.

As a point of reference, the Bureau of Labor Statistics defines part-time work as positions where people work fewer than 35 hours per week, while full-time employees work 35 or more hours per week. While this definition is not legally binding, it does align with most people’s experiences, as most part-time workers work between 15 and 29 hours per week.

Legal Rights and Benefits

Although the government does not mandate what constitutes part-time or full-time work, some legal requirements kick in at particular thresholds. For example, if someone works at least 30 hours per week or 130 hours per month, the Affordable Care Act classifies them as full-time. Businesses with at least 50 full-time employees under this rule must offer them healthcare under the ACA.

The Fair Labor Standards Act also says that hourly, non-exempt employees working more than 40 hours in a workweek have to receive overtime pay.

Generally speaking, benefits regarding days off, leave, and healthcare are more common for full-time employees, but some states might require benefits such as paid sick leave for part-time employees, too.

Employer Responsibilities

As businesses begin to consider whether to hire a part-time or full-time employee, they will want to consider the implications of their decision carefully. The deductions and withholdings they need to make from paychecks and what benefits they need to administer will be impacted by their decision. Employers need to investigate state and federal laws, so they know when they hit thresholds, such as the ACA described above. They also need to verify if their state requires benefits such as sick leave for part-time employees.

Employers also need to familiarize themselves with all the applicable labor laws, such as minimum wage and overtime, so they know what the law mandates for all employees, regardless of hours worked, and what thresholds might require changes in pay and benefits administration.

Operational Considerations

Choosing full-time and part-time employees can also impact your business internally. If you hire excessive part-time employees, for example, operational efficiency might not be as strong and may make managing part-time employees more of a struggle. Part-time employees often do not have the same loyalty to the business as full-time employees, which can result in more turnover and more disruption throughout the day as shifts end and new employees come in.

However, many employers enjoy benefits of part-time employment. For example, they may find that hiring more part-time employees offers them greater flexibility, as they can scale up their business operations as needed.

For example, if a business typically hits a busy period at a certain time of year, hiring some part-time help for temporary assistance is generally easier and more cost-effective than hiring full time. Businesses can also bring in part-time employees to help with increased workload as the business grows, increasing their hours and building towards a full-time position over time with continued growth.

Strategic Implications

When deciding whether to hire a full-time or part-time employee, you need to think carefully about your organizational needs and goals. Ask yourself the following questions and weigh these choices:

• Does your business need temporary assistance or long-term help?
• Do you expect the business to keep growing?
• How disruptive would turnover and the transitions between work shifts be for your business?
• How well can your business weather the increased benefits and pay costs of a full-time employee? Do you expect your budget to increase in the future?

Understanding how your business would use your part-time or full-time employees and how they would fit with your overall business strategy can help you make the optimal decision for your organization.

Exact Payroll’s Role

As your business brings in new employees, you have to navigate the complexities of part-time and full-time employment regulations carefully. From payroll processing to labor compliance, you have to consider many different regulations and how they will impact your business.

Fortunately, Exact Payroll is here to provide your business with personalized support to make this entire process easier. We can help you manage your responsibilities so that you can focus your attention on growing your business.

Building your Workforce

Part-time and full-time employees each offer businesses a variety of benefits that need to be considered as you build your workforce. Each form of employment, however, is subject to different types of regulations that dictate benefits and payments. Businesses interested in making new hires need to carefully consider the benefits and drawbacks of each type of employment so they can make informed decisions about how they want to structure the time of their new hire.

Get Started With Exact Payroll

If you are ready to build your workforce, contact the support team that will provide you with guidance every step of the way. Exact Payroll is here to provide expert support in managing part-time and full-time employees. Payroll management has never been so straightforward.