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What Counts as a Part-Time Employee?

The IRS defines full-time employees as those working at least 30 hours per week or 130 hours per month, mainly for determining Applicable Large Employer (ALE) status under the Affordable Care Act (ACA). However, there’s no standardized federal definition of a part-time employee.

Under the Fair Labor Standards Act (FLSA), employers are not required to classify part-time vs. full-time workers. That means you get to define what “part-time” means—typically, anyone working fewer than 30 or 40 hours per week, depending on your company’s policies.

Because of this flexibility, you also have discretion over what benefits, if any, are extended to part-time employees—outside of a few legally required benefits.

 

 

Are Employers Legally Required to Offer Benefits to Part-Time Employees?

In most cases, no—employers are not required to offer the same benefits to part-time employees that they offer to full-time workers. However, there are some important exceptions:

Health Insurance (ACA Requirement)
If you're an Applicable Large Employer (ALE) with 50 or more full-time equivalent employees, you must offer health insurance to anyone averaging 30+ hours per week—even if you classify them as part-time.

Retirement Plans (ERISA Requirement)
Under the Employee Retirement Income Security Act (ERISA), any employee—including part-time—who works 1,000 hours in a 12-month period is eligible to participate in the employer’s retirement plan.

Family and Medical Leave (FMLA)
FMLA applies to employers with 50+ employees. Workers—including part-timers—are eligible if they’ve worked 1,250 hours in the past year and meet other criteria.

For everything else—like paid time off, vision or dental insurance, tuition reimbursement, or commuter benefits—employers generally have the freedom to decide who gets what. Just keep in mind: your decisions must be applied fairly and consistently to avoid discrimination claims.

 

Should You Offer Benefits to Part-Time Employees?

Even though it isn't required, offering certain benefits to employees can help you stay competitive. Providing flexible perks like PTO accrual, wellness stipends, or access to voluntary benefits can improve retention and show part-time workers they're valued.

Many small employers work with a trusted benefits broker to craft offerings that make sense for their budget and workforce needs. 

 

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Additional Resources

You can stay informed, educated, and up to date with important HR topics using BerniePortal’s comprehensive resources:

BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
BerniePortal Blog—a one-stop shop for HR industry news
HR Glossary—featuring the most common HR terms, acronyms, and compliance
Resource Library—essential guides covering a comprehensive list of HR topics
HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics