Part-time vs full-time: Benefits, hours, and what you should know

Understanding the difference between part-time employment and full-time employment is essential for both employers and employees. For businesses, these classifications affect compliance, payroll, scheduling, benefits, and employee management. And for workers, the distinction influences everything from income and health insurance eligibility to paid time off and work-life balance.

In this article, we'll provide a detailed look at how part-time and full-time work are defined in the US, how student enrollment status relates to work hours, and what HR managers need to consider when structuring roles. So let's jump straight in.

What is full-time employment?

Full-time employment usually means working 35-40 hours per week, though US law defines it as at least 30 hours weekly (or 130 hours monthly) for health insurance purposes.

Note that this is not defined under the Fair Labor Standards Act (FLSA), but rather the Internal Revenue Service (IRS) and the Affordable Care Act (ACA), with the typical features of full-time employment including:

• A time commitment of at least 35–40 hours per week
• Compensation that meets the minimum salary requirement (where applicable)
• Eligibility for benefits, such as health insurance, retirement plans, and other benefits
• Paid time off (PTO), including vacation days, sick leave, and public holidays
• Regulated meal periods, breaks, and rest requirements
  
  

What is part-time employment?

Part-time employment typically refers to working fewer than 30-35 hours per week. Part-time roles are often used to cover peak business periods or provide flexibility for workers balancing education, caregiving, or other commitments.

While 30 hours is often the widely used figure, the exact threshold depends on the employer and jurisdiction. Benefits (such as health insurance and PTO) are also less common for part-time roles, though some employers extend them to attract and retain talent.

Typical features of part-time employment include:

• A time commitment of less than 30 hours per week
• Hourly pay (although salaried part-time roles exist)
• Limited benefits eligibility, with health insurance and retirement plans potentially unavailable
• Less PTO
• More flexibility, with employees able to balance work with education and/or personal responsibilities

Full time vs part time: What are the key differences?

Note that the Bureau of Labor Statistics (BLS) classes full-time employment as 35 hours or more per week, and part-time employment as 34 hours or less. However, this definition is used strictly for statistical purposes (e.g., to track labor force participation, unemployment, or job growth in US economic reports).

What about full-time-equivalent employees?

Headcount alone doesn’t always give an accurate picture of your workforce, which is where the concept of full-time-equivalent employees (FTE) comes in.

FTE is a standardized way to calculate staffing by converting part-time hours into the full-time equivalent.

For example, the following scenarios would all count as one FTE employee:

• One employee working 40 hours per week
• Two employees working 20 hours each per week
• Four employees working 10 hours each per week

This is an important concept to understand, because the ACA deems employers with 50 or more FTEs to be applicable large employers (ALEs), and to provide health insurance to its eligible employees. HR managers also use FTE to forecast payroll costs, allocate resources, and plan staffing needs more effectively.

By understanding FTE calculations, your business can make better decisions about when to hire part-time vs. full-time staff, while staying compliant with employment laws.

What are the legal and HR considerations of full time vs part time employment?

For human resources managers and business owners, distinguishing between part-time and full-time employment isn’t just about scheduling. It carries important legal and compliance implications, such as:

Overtime

One of the biggest considerations is overtime eligibility. Under the FLSA, non-exempt employees receive overtime pay at 1.5 times their regular hourly rate (beyond 40 hours in a workweek).

While most full-time roles are more likely to bump into overtime thresholds, part-time workers may also qualify if they exceed standard hours during peak periods. As a result, you must track hours carefully to remain compliant.

Meal periods and breaks

Some jurisdictions require rest breaks and meal periods, depending on shift length. For example, US federal law does not mandate breaks, but many states do.

This means that if you're managing a mixed workforce of part-time and full-time employees, you must ensure your schedules comply with the most restrictive local rules.

FTE calculations

Instead of simply counting headcount, governments and regulators often require companies to measure staffing levels based on total hours worked. And, as mentioned, the ACA uses FTE calculations to determine whether an employer meets the 50-employee threshold for mandatory health insurance coverage.

This means your part-time staff count toward FTE, even if they don’t individually qualify for benefits.

Minimum salary requirement

Finally, HR managers must account for minimum salary requirements when classifying employees as exempt or non-exempt under labor laws. Misclassifying your employees can lead to penalties, back pay, and reputational damage.

As a result, you should document employee status, hours, benefits eligibility, and pay classification clearly in contracts to reduce risk.

Taken together, these legal and HR considerations highlight why your company can’t treat “full time vs part time” as a casual label. Getting it wrong can lead to compliance headaches, fines, or employee dissatisfaction, meaning clear definitions, accurate time tracking, and consistent company policies are essential.

How to decide between hiring someone full time or part time

Choosing whether to hire someone as a full-time or part-time employee is a strategic decision that affects your business’s flexibility, costs, compliance obligations, and long-term growth.

To make the right choice, you should weigh the pros and cons of each option against your immediate needs and long-term workforce goals.

When full-time hiring makes sense:

Hiring a full-time employee is often the right choice when you need stability and want someone deeply invested in the role. The benefits of full-time hiring include:

• Consistency and reliability: Full-time staff are available on a predictable schedule, making it easier to plan projects, meet deadlines, and maintain continuity.
• Stronger employee loyalty: Employees who receive benefits such as health insurance, retirement contributions, and PTO are more likely to stay with your company long term.
• Deeper engagement: With more time in the role, full-time employees develop stronger expertise in company processes, culture, and customer relationships.
• Workforce development: Training investments pay off more with full-time staff who plan to stay and grow within the business.

However, hiring someone full time also results in:

• Higher costs: Salaries, benefits, and payroll taxes increase your overall expenses. For small businesses, this can be a major budget consideration.
• Less flexibility: Once hired, reducing hours or making adjustments can be more difficult compared to part-time arrangements.
• Compliance requirements: Full-time staff count toward your FTE calculations, which may push your business into new compliance thresholds (such as health insurance).

When part-time hiring makes sense:

Part-time employees are a good fit for roles where flexibility, seasonal needs, or cost management are more important than having full-time coverage. The pros of part-time hiring include:

• Cost savings: You can reduce your payroll costs by offering fewer hours and, in many cases, limiting access to benefits.
• Flexibility in scheduling: Part-time roles make it easier to staff peak hours, handle seasonal spikes, or cover specific shifts.
• Access to wider talent pools: Part-time roles can attract students, caregivers, or professionals who want supplemental income but cannot commit to a full-time schedule.
• Reduced risk in uncertain times: Hiring part-time staff can help your business scale up or down more easily as demand changes.

Conversely, part-time hiring also results in:

• Limited availability: Part-time employees may have other commitments, making scheduling more complex and less predictable.
• Lower retention: Without benefits and long-term job security, part-time staff may leave more quickly, leading to higher turnover.
• Less integration: With fewer hours, part-time employees may feel less connected to your company culture or miss out on training and development opportunities.
• Compliance issues: While part-time workers may not qualify for all benefits, their hours still count toward FTE totals, which affects your reporting and regulatory obligations.

Ultimately, the right choice often comes down to the specific needs of the business. For instance:

• Growing companies may lean toward full-time hires to build stability and culture.
• Small businesses or startups may prefer part-time roles to stay agile and manage costs.
• Seasonal industries such as retail, hospitality, or agriculture often rely heavily on part-time or temporary staff to handle peaks.

Ultimately, the decision is not always either-or. Many businesses use a blended workforce model, combining full-time employees for core functions with part-time staff to provide flexibility and scalability.

By weighing the pros and cons, HR managers and business owners can design a workforce structure that balances stability, cost control, and long-term growth.

How can Remote help?

Managing a workforce that includes both part-time and full-time employees can quickly get complicated. With Remote, you can handle payroll, benefits, compliance, and HR services for every type of worker, all in one platform.

We provide:

• Centralized HRIS: Store contracts, policies, and people data while giving your employees self-service access to time off, payslips, and expenses.
• Time and attendance tracking: Record hours, overtime, and approvals seamlessly for payroll compliance.
• Payroll made simple: Run payroll with automated tax calculations, filings, and multi-state support for both hourly and salaried staff.
• Benefits for all: Offer competitive US benefits and manage eligibility for full-time and part-time employees in the same system.
• Flexible service models: Whether you need a PEO, standalone payroll, or an employer of record (EOR), Remote scales with your needs.
• Built-in compliance and reporting: Approvals, audit trails, and cross-team reporting keep your HR and finance teams aligned.

With Remote, you get a single solution to support every kind of employee, saving you time, ensuring compliance, and creating a better experience for your team.

To learn more, speak to one of our friendly experts today.