Americans spend a significant portion of their lives working. Per USA Today, the typical full-time worker spends around 71% of his or her year on the job. For those clocking in five days a week, that adds up to about 2,080 hours annually. 

But what does it mean to be a “full-time” worker? Have you ever wondered what really qualifies someone as full-time? And why does it matter so much? Keep reading to uncover the answers to these questions and more. 

Definition of Full-Time Hours

Many people automatically assume that full-time means working 40 hours per week; however, that’s not always the case. The definition of a full-time employee can vary depending on the source. Let’s take a closer look. 

According to the IRS, a full-time employee is someone who works an average of at least 30 hours per week or 130 hours per month. The IRS uses two methods to determine full-time status: 

• The Monthly Measurement Method: Employers check to see if an employee works at least 130 hours each month. 

• Look-Back Measurement Method: Employers look at the hours worked during a previous period (called the measurement period) to determine if an employee should be considered full-time during a future period (known as the stability period). It’s like checking your step count at the end of the week to see if you’ve hit your fitness goals. 

The U.S. Bureau of Labor Statistics, on the other hand, considers anyone working more than 35 hours a week as full-time. The Affordable Care Act (ACA), much like the IRS, utilizes the 30-hour benchmark to define full-time work. 

What’s the Difference Between Part- and Full-Time Employment?

Even though federal guidelines light the path, employers have significant leeway when defining full-time work. Historically, full-time meant an eight-hour workday, five days a week, totaling 40 hours. However, each employer is entitled to establish its own definition, and the wording is vital because it typically sets the eligibility threshold for full-time benefits.

Generally, if you don’t meet your employer’s “full-time” criteria, you’re considered a part-time worker. In some countries, laws protect part-time workers to ensure they’re not treated unfairly compared to their full-time colleagues.

That is not the case currently in the U.S.; however, Sen. Elizabeth Warren has sponsored a bill, S 2641 - The Part-Time Workers Bill of Rights, which aims to modify rules around employment, leave, and pensions for part-time workers. For example, it proposes eliminating the minimum hours requirement before part-time workers can qualify for family and medical leave. 

Common Benefits Associated with Full-Time Employment

A primary differentiator between part- and full-time employees is eligibility for benefits. Full-time employees are typically entitled to all benefits an employer offers, whereas part-time workers may be ineligible or receive a portion of what’s available. For example, if an employer offers full-time employees 20 vacation days, part-time employees who work 50% of the time may be entitled to 10 days. This proration provides an “objective justification” defense and ensures an employer is safe from discrimination lawsuits. 

Here are a few of the more common benefits American employers offer. 

Health Insurance: Medical, dental, and vision insurance plans are generally included in an employer’s benefits plan, and employers will often cover a portion of the premiums. According to data compiled by the U.S. Census Bureau, approximately 86% of private sector employers offer health insurance benefits. 

Retirement Plans: Employers often offer retirement savings plans, such as a 401(k), with possible employer matching contributions. According to Guideline, 58% of companies with 100 or fewer employees offer retirement benefits; however, that rate rises to 87% for companies with 100 or more employees. 

Paid Time Off (PTO): Full-time employees are often entitled to paid vacation days, sick leave, and holidays, often referred to as PTO. Some companies will segment these out into individual categories while others will lump them together comprehensively. Per the Center for American Progress, 79% of all private sector employees have access to paid vacation time, while part-time employees (40%) and the lowest 10% percent of earners (43%) are roughly half as likely to have access. Paid vacation time also varies substantially by industry: Approximately 40% of accommodations and food services workers and 42% of leisure and hospitality workers have paid vacation compared with 98% percent of those working in finance and insurance.

Life and Disability Insurance: Many employers provide life insurance policies and short- or long-term disability insurance to protect employees in case of unexpected events. Per the U.S. Bureau of Labor Statistics, 86% of union workers and 55% of nonunion workers have access to life insurance plans as of September 2023.

Paid Parental Leave: Some employers offer paid maternity, paternity, or adoption leave as part of their benefits package. According to SHRM, 32% of employers offered paid parental leave in 2023. 

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): These accounts allow employees to set aside pre-tax money for medical expenses or dependent care. According to SHRM, in 2022, 63% of U.S. companies offered FSAs and 57%, HSAs. 

Bonuses and Incentives: Full-time employees may be eligible for performance-based bonuses, profit-sharing, or stock options, assuming an employer offers such an incentive. The annual U.S. Chamber of Commerce Employee Benefits Survey indicates that somewhere between 19%-23% percent of U.S. companies have offered some form of profit sharing since 1963.

Educational Assistance: Tuition reimbursement or professional development programs may be offered to help employees further their education or skills. According to SHRM, 48% of employers offer tuition assistance for undergraduate or graduate degrees. 

Employee Assistance Programs (EAPs): EAPs provide support for personal issues, such as counseling services, financial planning, or legal assistance. According to a 2022 Business Group Health survey, 98% of employers offer some type of EAP. 

Wellness Programs: Some employers offer wellness programs, gym memberships, or incentives for healthy living to encourage employee well-being. According to Rand, 69% of employers offer wellness programs, and of those that do, 75% offer incentives to encourage program uptake. 

Commuter Benefits: Assistance with transportation costs, such as public transit passes or parking stipends, may be provided. A 2024 Mercer survey found that 18% of employers with 500 or more employees offered commuter benefits, and that number increased to 21% for employers with 5,000 or more employees. 

Childcare Assistance: Some companies offer on-site childcare or subsidies for daycare costs. According to Boston Consulting Group, 12% of U.S. workers have access to childcare benefits via their employers. 

Overtime Hours and Regulations

Sometimes, employees need to work beyond their contracted hours. When this happens, those extra hours may qualify for overtime pay, depending on state and federal laws. 

Under the Fair Labor Standards Act (FLSA), employees are classified as either exempt or nonexempt from overtime pay. Nonexempt employees are entitled to overtime pay — usually at time-and-a-half — for any hours worked exceeding 40 in a week. Exempt employees, who are typically salaried, do not receive extra pay for overtime.

The table below showcases the four primary differences between exempt and nonexempt employees. 

Legal Obligations and Compliances

Employers must adhere to numerous legal and regulatory requirements when managing part- and full-time employees. These include, but aren’t limited to:

Minimum wage, overtime, and timekeeping laws; employee classification laws that clearly define exempt and nonexempt employees as well as what differentiates a part-time employee from a full-time employee; benefit compliance ensuring plans meet the provisions established by the Affordable Care Act, Employee Retirement Income Security Act (ERISA), FMLA, etc.; anti-discrimination laws, such as the Americans with Disabilities Act and Age Discrimination in Employment Act (ADEA); equal treatment regarding age, race, sex, and diversity; workplace safety as outlines by the Occupational Safety and Health Administration (OSHA); meal and rest break requirements; unemployment insurance; worker’s compensation; and more. 

Additionally, if an employer makes a promise or issues a misleading statement, an employee may bring forth a case for negligent misrepresentation or fraudulent inducement. For example, if an employer regularly promises you overtime pay but then reneges on the promise, or if a company manager promises to move an employee to full-time but fails to do so after a reasonable time period, the employee may bring forth litigation. 

These promises don’t necessarily have to appear in writing – they can be spoken, made in a meeting, etc. While each state's labor laws, employment-at-will laws, fraud claim regulations, and individual legal rights may vary, generally speaking, employees can sue for false representation if they have sufficient evidence.

The Importance of Tracking Employees’ Hours

Accurately tracking employee time is crucial for distinguishing between part- and full-time statuses. Time tracking offers numerous other advantages, including precise payroll procedures, benefits management, and compliance with labor laws. Implementing software that correctly classifies employees, provides 24/7 access to customizable schedules, and allows employees to request, monitor, and adjust PTO may also help streamline operations. Additionally, generating detailed reports and analyzing the results not only tracks hours effectively but also enhances overall productivity.