What is a Full Time Employee?

Do you work full time or part time?

It’s a common question among colleagues and neighbors, but what does it mean exactly?

A full-time employee typically works between 35 to 40 hours a week. But this definition can vary depending on company policy and local laws.

In this edition of HR Vocabulary, we’ll break down what is a full time employee, what constitutes full-time employment, and explore its key aspects and benefits.

Defining Full-Time Employment

Full-time employment is typically defined by the total hours worked each week, generally ranging from 35 to 40 hours. Key points to keep in mind:

• Full-time employees usually work at least 35 hours weekly.
• Many organizations align to a 40-hour standard.
• The Affordable Care Act (ACA) considers employees working over 30 hours per week as full-time, a standard many employers have adopted.

Furthermore, every organization is different, so the definition of full time employment can change based on:

• the role’s demands
• the time needed for job responsibilities
• regional employment laws

Once full time work is clearly defined, employers and employees can understand what is expected of them and what their work schedules look like.

Number of Hours Per Week for Full-Time Employees

The weekly hours full-time employees work can vary significantly across countries. In the United States, the average workweek is about 34.5 hours per week. This flexibility mean employers can adapt to varying labor demands while maintaining a full-time workforce.

On the other hand, international standards for full-time work can vary widely. For example:

• France has a legal 35-hour workweek to combat unemployment.
• South Korea mandates 40 hours with up to 12 hours of overtime allowed.
• Full-time workers in Hong Kong average eight hour days weekly, often without overtime pay.
• The European Union generally limits the workweek to 48 hours to protect workers’ rights.
• Colombia is in the process of reducing its workweek from 48 to 42 hours
• Despite regulations, many workers in Mexico often exceed the mandated 48-hour workweek.
• Bhutan permits full-time employees to work up to 60 hours a week

Full-Time vs. Part-Time

Full-time hours are typically 35 to 40 hours weekly. Part time hours are usually half that of full time but at the very least fewer than 30 to 35 hours. Having a mix of full time and part time roles allows employers to be flexible with their labor needs.

In addition to hours, work type and associated responsibilities can influence full-time status. Some organizations may factor in mandatory rest periods, including vacation time, when defining full-time hours.

As an employee, understanding these nuances can help you manage your work schedule and expectations effectively.

Benefits Comparison

Full-time employees generally enjoy more benefits than their part-time counterparts. Benefits can include:

• Comprehensive health, dental, and vision insurance
• Paid time off
• Retirement plans

The stronger benefits reflect a long-term investment from the company to their full time members. Even if a company wanted to, its possible part-time employees may face benefit eligibility limitations based on various regulations.

Despite the limitations, part-time employees can receive prorated benefits aligned with their hours. Also, employers may offer flexible part time schedules and performance bonuses to recruit and retain part-time workers in these positions. This means better job satisfaction and less turn over.

Legal Considerations for Full-Time Employees

There are a few legal considerations when it comes to defining and managing full-time employment:

• Under the IRS and ACA, a full-time employee averages at least 30 hours per week.
• Applicable Large Employers (ALEs) with 50 or more full-time equivalent employees must provide health insurance meeting ACA standards.
• Smaller businesses with fewer than 50 full-time equivalent employees are not required to offer health insurance.

Employers are required to accurately track employee work hours to determine their full-time or part-time status. For example, using a time tracking tool would automatically provide the documentation needed to be in compliance with labor laws. This means the employer can avoid legal issues and ensure fair treatment.

In general, companies should be adhering to the Fair Labor Standards Act (FLSA) and the ACA, which govern employment standards and health insurance obligations.

Overtime Pay Requirements

Under the Fair Labor Standards Act (FLSA), overtime pay is a big part of full time employment.

Non-exempt employees (meaning hourly workers who clock in) are entitled to time and a half for hours worked beyond 40 in a week. While salaried employees (exempt) may work over 40 hours without extra pay, non-exempt employees must be compensated for overtime.

There are two primary methods for determining full-time status:

• the monthly measurement method – requires at least 130 hours worked in a calendar month
• the look-back measurement method – assesses hours over a previous period.

Health Insurance Obligations

The ACA is responsible for clarifying health insurance obligations for full-time employment. According to the ACA, a full-time employee is a worker who averages 30 or more hours per week.

If an employer is classified as Applicable Large Employers (ALEs), they are required to provide health insurance that meets minimum standards to at least 95% of their full-time employees. This allows for the employer to share in the payment responsibility.

However, smaller employers are not required to offer health insurance under the ACA.

Financial Impacts of Hiring Full-Time Employees

Many people don’t realize that hiring full-time employees involves costs beyond just salaries. Employers must account for:

• Payroll taxes – includes matching employee contributions to Social Security and Medicare
• Training expenses – including time, resources, and external services for training and onboarding
• Benefits costs – medical, dental, retirement are usually major investments by the organization
• Recruitment costs – including advertising, background checks

Managing a Full-Time Workforce

Ask any manager or leader, and they will tell you managing a full-time workforce effectively requires clear communication and the necessary human resources.

For example, leaders should:

• Communicate expectations clearly via emails, regular one-on-one meetings or group meetings – this means less confusion, less errors, and more productivity from the team.
• Provide resources like an employee handbook, training docs, etc which can help employees fulfill their responsibilities, gain confidence, gain accountability and boost role clarity.
• Share a vision and understand each member via surveys or one on ones – this taps into the emotional inner drive of each team member and builds loyalty.

Final Thoughts

In summary, full-time employment typically involves working 35 to 40 hours per week, which offers comprehensive benefits and a stable work environment. However, it also comes with significant financial and legal costs and considerations for employers.

Managing a full staff of full time workers means providing clear goals, tasks, training and tracking hours, benefits, and costs to get the most out of your team and therefore your business.

Frequently Asked Questions