Key Differences You Need to Know – Forbes Advisor

A few federal laws govern your liability as an employer to your employees based on hours of work.


Under the ACA, so-called Large Applicable Employers (LEAs) are required to offer minimum health insurance coverage to full-time employees, as the IRS explains.

LEAs are employers who average 50 or more full-time employees per year. This includes “full-time equivalent” employees, that is, a group of employees whose hours are added to those of a full-time employee. In other words, large companies cannot completely avoid the responsibility of providing health insurance by employing a group of part-time workers, although they are still not responsible for providing health insurance to these part-time employees. partiel.

Under the ACA, the IRS explains, an employee is considered full-time if they work an average of at least 30 hours per week or 130 hours per month.

The ACA is the only federal law that explicitly defines a full-time employee. This definition of 30 hours per week only applies to employer health insurance liability and does not govern how you rank employees for eligibility for other benefits. However, because of this requirement, it might be easier for your record-keeping to set your full-time hour limit at 30 hours across all areas.

Overtime payment

The FLSA applies to all non-exempt employees, regardless of their full-time or part-time status. It entitles non-exempt employees to federal minimum wage — $7.25 an hour at the time of this writing — and time-and-a-half overtime pay for hours worked in excess of 40 hours. per working week.

Any part-time or full-time employee would be entitled to overtime pay when working more than 40 hours in any given week, unless classified as exempt under the RSA.

The FLSA defines as exempt executive, administrative, professional and outside sales employees and “certain IT employees,” who receive wages of at least $684 per week. The FLSA defines the duties that constitute exempt positions. Defining an employee as full-time or giving them a related job title is not enough.

Family and medical leave

The Family and Medical Leave Act of 1993 (FMLA) entitles employees to unpaid, job-protected leave for circumstances such as the birth or fostering of a child, long-term illness or caring for a family member.

The FMLA applies to all employees, whether full-time or part-time, but it comes with certain work hour requirements.

To be eligible for job-protected leave under the FMLA, an employee must have worked for your company for at least 12 months and worked at least 1,250 hours for your company in the previous 12 months. This equates to around 26 hours per week minimum, which means many part-time employees might not be eligible.

Like the ACA, FMLA only applies to companies with at least 50 employees.

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