Key Differences Between Full-Time and Part-Time Jobs

In short, full-time hours employment is 35-40 hours per week, while part-time hours employment amounts to 30-35 hours per week. The distinction between full-time and part-time engagement is delineated by the allocation of hours and resources. While certain organizations define full-time involvement as dedicating 40 hours per week to a project, others might confer this status upon team members contributing as little as 32 hours weekly. Conversely, individuals contributing 30 hours or fewer per week are typically categorized as part-time contributors to the project. The number of part-time and full-time employees a company has affects whether the employer is classified as a small employer (SE) or an applicable large employer (ALE). SEs and ALEs have different obligations.It is important to distinguish between full-time and part-time employees because full-time employees receive benefits while, generally, part-time employees do not. For example, part-time employees typically don’t receive paid time off (such as vacation or holiday pay), employee benefits (health insurance), and part-time employees are often excluded from participation in employer retirement plans.If you want to quickly weigh the pros and cons of part-time vs full-time workers, you will find this video helpful:For an in-depth review of the differences between full-time and part-time (and how to set these differences in your company), stay with us, and let’s dive into the finer details!

What is considered full-time?

In short and in general, in the US, full-time work is commonly considered to be 32-40 hours or more working time per week.However, depending on what definition you look at, you may see different numbers for full-time hours. For example, the Bureau of Labor Statistics definition of full-time considers this type of employment to be 35+ hours per week. Meanwhile, the Affordable Care Act defines a full-time worker as someone who is employed more than 30 hours a week. How many hours is full-time is just one part of the part-time vs full-time puzzle. Defining the status of full time or part-time workers means taking into consideration:

1) Is the work permanent, temporary, seasonal?

If the role is permanent and more than 30 hours, your employee is likely to be full-time. For temporary and seasonal workers, it will depend on the type of contact you have with them. In any case, you need to follow Federal and Local employment laws for employment conditions and benefits.

2) Do your employees receive benefits?

Paid time off, health insurance, private retirement plans - all these are benefits companies normally offer to full-time employees. However, part-time employees may still be eligible for certain benefits on a pro-rata basis. Check your local state employment laws. In some instances, you may be discriminating if you do not offer part-time employees benefits. For example, Hawaii’s Prepaid Health Care Law states that employees that work over 20 hours per week should be provided with health insurance.

3) Are you a small employer (SE) or an applicable large employer (ALE)?

If you have more than 50 employees or equivalents that work full time, you will be classified as an ALE (Applicable Large Employer). This obliges you to offer certain healthcare benefits to your employees under the Affordable Care Act (ACA). SEs are not exempt from the ACA but have different requirements.

Full-time hours Q&A

Below we answer some of the most frequently asked questions about employing full-time staff for your company.

❓ Does it make a difference whether I pay my employees a salary or by the hour?

Although salaried vs hourly debate often appears when it comes to the full time vs part-time discussion, how you pay your employee doesn’t mean much in terms of how they are classified. When paying salaried employees, the amount stated in the contract will be defined as a monthly payment and paid on a monthly or 4-weekly basis. Alternatively, this might be seen as a yearly payment, which will be divided and paid based on how many weeks or months an employee has worked.

❓ Is my hourly employee full time?

This depends on how many hours a week they work for you. If on average, your employee has worked more than 30+ hours a week they may be classed as full time or a full-time equivalent, meaning you may be liable for benefits and other contributions under law. In case you need to accurately calculate how many hours your employee has worked in any given week, try our free online timesheet.If you have a zero-hour contract (flexible) with your employees, you will still be bound by employment law (more on that later) but may not have to offer sick pay, a pension, parental leave, or other specific criteria. When debating whether hourly or salaried is the way to go, pay attention to whether your employee will be classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA).

❓ What are exempt and non-exempt employees and why does it matter?

Exempt and non-exempt employees are two categories defined under the Fair Labor Standards Act (FLSA). Here’s a quick table to help you understand how your employees should be classified:Defining your employees as exempt or non-exempt is essential to know whether you should be paying overtime or not.

Advantages and Disadvantages of Full-Time Employment

In short, the benefits of employing your staff full-time are:And the negative aspect of full-time employment could be:Now that we covered what full time means for your business, let’s move on to part-time work.

Part-time employment: the basics

Where is the line between part-time vs full time? How many hours is part-time? And what’re the average part-time hours per week? Let’s take a look at the role of part-time employees in your business and the part-time employment definition.

Exactly How Many Hours Is Considered Part-Time?

Generally speaking, a part-time employee will work fewer than 30 hours per week on average.

Part-time hours Q&A:

Below we’ll explore some of the most frequently asked questions about employing part-time staff for your company and what this means for you.

❓ Do you need to pay your staff benefits if they are part-time?

Many part-time employees are not entitled to workplace benefits. This means cost savings for many employers. But, there is an exception. If your workplace has 50+ employees, then you are obliged to provide 95% of them who work for 30 hours and more with health insurance. This falls under the Affordable Care Act.

❓ What is considered part-time?

Part-time workers often enjoy more flexible schedules than full-time employees. This leaves them lots of time for outside work activities, or even a second job. Types of part-time work schedules include:

❓ Which types of jobs are most suitable for part-time work?

Almost all types of work could be suitable for transfer to part-time roles. However, some of the most popular include health and social care, accounting, computer programming, editing, graphic design, waitressing, and more.Part-time work may be undertaken to supplement the employee’s main wage or as a standalone activity for an employee who is part-time by choice.

Advantages and Disadvantages of Part-Time Work

Some of the advantages of employing part-time staff include:There are definitely some disadvantages to consider, too, when it comes to employing part-time workers:Now that we learned about part-time vs full-time employment, let’s compare them.

Differences Between Part-Time vs Full-Time Employees: Comparison Table

Knowing the difference between part-time vs full-time is essential to your staffing planning. Below we break it down for you in a handy table that compares these two types for you.

Part-Time vs Full-Time: What You Need to Know to Make the Right Choice

We’ve covered what full-time vs part-time means for you and your business… but what are the criteria you should base your decision on? If you’re still torn, here is the list of the factors you need to consider.

The legal

No matter which type of employment style you choose, you will be bound by one thing - the Fair Labor Standards Act (FLSA). Developed in 1938, the FLSA defines workers’ rights and employers’ responsibilities. It covers terms, such as exempt and non-exempt, rules and compliance, and more. When employing a member of staff, this is your go-to guide for doing things right. Here are some of the main points to pay attention to:

Don’t forget the ACA

As an employer, there’s one additional piece of legislation you’ll need to take note of - the Affordable Care Act. If you have more than 50 full-time employees, you are an “applicable large employer” or ALE. This means you should provide health insurance to your employees.Less than 50 full-time employees or equivalents and you’re probably a Small Employer (SE).However, calculating if you have 50 full-time employees is not so straight forward as you initially think. To do this involves adding all your employees’ hours together and dividing them. Need some help? The government has developed a special calculator to do this for you. Just input the hours - you can calculate them with Everhour - and see if you’re eligible to pay ACA.

The practical

With the legal out of the way, now you need to find systems and procedures within your organization to make full-time or part-time work for you. This comes down to three factors - project management, time monitoring, and budgeting.

Project management methodologies

Before you launch your awesome project, you’ll need a system and structure to make it work. Also known as your project management methodology. That applies whether you’re going Agile, Waterfall, or more traditional. This defines the methodology by which you will work and then allows you to plan your staffing needs more accurately. By deciding this key point, you’ll be able to define which staff you need - full-time or part-time and approximately when in the project you need them. You can even hire freelancers or external experts as and when required.

Make time management a priority

Next up is time management. If you’re already a time tracking pro and experienced leader, you’ll have some idea of how long it takes to get work done. But if you’re newish or taking on a brand new project, there will be some trial and error as you evaluate working hours. In either case, using a time tracker helps you get to grips with:

Budget like a pro

Now, what about that budget? Budgeting is a vital part of any company, without accurate finance-keeping, you will find your business is ineffective and essentially more a hobby than a business. You need to make sure your company is profitable. Your budget not only dictates how many employees you need to get work done but also how valuable their time is for you. For example, you may be underpaying someone who makes your company a fortune. Or overpaying another who brings little profit. Our project budgeting feature can help you to account for all calculations in your project and get reliable, usable data. Note, that knowing your budget and costs is helpful when tracking time for invoices and other financial transactions.

The efficient

You’ve covered the basics of getting your full or part-time employees to work. But, no matter how great your workers are or how many hours they work, you need to keep them motivated and productive.Adding productivity tools to your business, such as project management software (for example, Asana project tracking) and time trackers, helps to keep your team in sync on tasks and motivated to work as they see the company’s overall progress. In addition, communication tools such as Slack, Skype, Zoom, etc. boost your team’s ability to cooperate and work together, no matter whether they are in the office or working remotely. Helping them to stay connected and on the same page with the project.

Benefits and bonuses

But that’s just the basics. Aside from your essential internal methodologies, you will need to consider other tools and benefits to boost motivation and productivity. For example, team-building activities and games may seem like a waste of precious time. However, getting your employees together builds a stronger team that reaches goals more effectively and has an increased ability to solve tough issues. You might additionally consider financial or benefit bonuses based on hours worked or performance indicators. These pluses show your business cares about its staff. So, make your team’s well-being a priority beyond their time-worked!

Part-Time vs Full-Time Checklist

Even when armed with all the facts, it can be hard to put them into action. That’s why we created this handy and free part-time vs full-time checklist to help you evaluate the better fit.How do you use it?Simple. Whichever side has the most boxes ticked might be a better fit for your company. However, you should compare this with your overall company plans and project roadmap to get a fuller picture.

Full-Time vs Part-Time Wrap-Up

Thanks for reading our guide to full-time vs part-time. We hope you learned the key factors of what this means for you and your business. Remember, keeping track of all those full and part time hours is no easy task, nor will the needs for full time vs part time workers be the same for every business. But no matter the industry you’re working in, from digital to traditional, Everhour is a simple solution to help manage your employees’ time. With our time tracker, you can:We wish you the best of luck with your business. Get in touch with us to learn more about how Everhour can help you keep time and get results!If you are managing a team of 5 or more and looking to boost efficiency, Everhour is the perfect tool to keep your team on track. With seamless time tracking, you can easily estimate task durations, set clear budgets, and generate detailed reports inside Asana, Trello, Jira, or any other pm tool.