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How Many Hours is a Part-Time Job? Understanding Different Employment Types

Written by CoAdvantage | Nov 26, 2024 5:15:07 PM

When an employer is defining job roles, one of the first considerations is whether to designate a position as full-time vs. part-time. The distinction between these two types of jobs can significantly impact recruitment, retention, and staffing success, but the differences between the two types of jobs aren’t necessarily as clear-cut as many assume. For one thing, the number of hours worked isn’t as important to the designation as you might expect.

So, how many hours is a part-time job? The answer can vary depending on a range of factors, including industry norms, company policies, and federal regulations.

Employers Have Wide Latitude in Determining How Many Hours Is a Part-Time Job

Notably, the U.S. Bureau of Labor Statistics defines 35 or more hours per week as full-time employment, but this definition does not carry the force of law. It is for statistical and data gathering purposes only. The most applicable law (The Fair Labor Standards Act, or FLSA) does not differentiate between these types of employees at all. As the U.S. Department of Labor writes on its website, “The [FLSA] does not address part-time employment. Whether an employee is considered full-time or part-time does not change the application of the FLSA.”

That means, for example, if a worker is non-exempt and happens to work 41 hours in a single week, they would still be owed overtime pay, regardless of how their employer classifies them.

Other state and federal laws may also affect employees based on hours worked, like mandates around benefits eligibility, regardless of whether the employer considers them full- or part-time. For example, while the FLSA does not set specific hourly requirements for full-time or part-time work, the Affordable Care Act (ACA) does introduce a more precise standard for affected employers.

The ACA considers employees who work an average of 30 hours per week or 130 hours per month as full-time workers for the purpose of determining eligibility for employer-provided health insurance. This standard has influenced many employers to set their full-time thresholds around the 30-hour mark, though some may still adhere to the traditional 40-hour benchmark.

So, in general, the government does not seem unduly concerned with whether any given worker is part-time, full-time, or some other designation, only that applicable regulatory requirements are followed for all applicable employees.

On the plus side, this means that employers have a lot of discretion in how they structure different job roles for optimal recruitment and hiring, including whether to pay hourly or salaried, whether to offer benefits or not, and when and how many hours to schedule each week. “Part-time” worker is thus more a convenient way of understanding a role that is not likely to pay benefits, is more likely to be paid hourly, and is likely to require fewer than 35 hours of work per week.

Typical Max Hours for Full-Time Jobs

Without a universally accepted definition, part-time employment has generally come to refer to any position where the employee works fewer hours than the company’s full-time requirement. This could mean anything from 5 to 35 hours max per week, depending on the employer. Part-time jobs are often used to cover peak hours, seasonal demand, or specific tasks that do not require a full-time commitment.

By contrast, full-time jobs are traditionally associated with a standard 40-hour work week, typically distributed over five 8-hour days. This definition is deeply rooted in labor practices and was solidified with the passage of the Fair Labor Standards Act (FLSA) in 1938, which established guidelines around minimum wage, overtime pay, and working hours.

Employers seem to favor hiring full-time employees; around three-quarters of the U.S. workforce is defined as full-time by the BLS (again, solely for statistical purposes). Interestingly, this proportion has been slowly but steadily increasing over time (from 65.4% in 1950 to 75.8% in 2022). Part-time workers tend to be used in more limited ways to fill niche needs.

Industry Norms and Practices

Service and Retail Sectors: In industries like retail, hospitality, and food service, part-time positions are quite common. These sectors often require flexible staffing to accommodate fluctuating demand during peak hours or seasons. Part-time employees might work as few as 10 to 15 hours a week, or they may take on shifts that extend up to 30 hours. Companies in these sectors may prefer hiring part-time workers to avoid the cost of providing benefits that are often reserved for full-time staff.

Corporate and Professional Services: In contrast, industries like finance and technology might have different expectations. Part-time roles in these fields are often structured around specific projects or tasks, with employees working around 20 to 30 hours per week. Companies in these sectors may also offer prorated benefits to attract skilled workers who prefer a reduced schedule, such as working parents, retirees, or those pursuing further education.

Pros of Full-Time vs. Part-Time Employment

  1. Flexibility and Appeal to Specific Demographic Groups: Part-time jobs offer greater flexibility, which can appeal to students, caregivers, and those seeking work-life balance. In fact, about 70% of workers over 65 are in part-time jobs, according to USA Today. This flexibility can also benefit employers who need to cover specific times without committing to full-time schedules.
  2. Cost Savings for Employers: By hiring part-time staff, companies can save on costs related to salaries, benefits, and overtime. This is particularly useful for small businesses or those with variable demand.

  3. Trial Period: Part-time roles can be ideal for employers to create an effective hiring pipeline into full-time roles after ensuring workers perform well. In fact, as many as three-quarters (77%) of part-time workers say they would like to stay in the role longer if offered a full-time job.

Cons of Full-Time vs. Part-Time Employment

  1. Limited Benefits: One of the most significant downsides of part-time work is the lack of benefits, including health insurance, retirement plans, and paid time off. This can make part-time positions less attractive for those who need these perks, and thus harder to recruit.

  2. Inconsistent Hours: Part-time jobs may not offer a steady, predictable schedule. This can limit hiring and impact retention rates among employees who want steady work and are only working part-time as an interim measure. This variability can also make both staffing and scheduling logistically more complex.

  3. Higher risk of Turnover: Part-time workers are less likely to show loyalty to their employers. Only 43% of part-time workers expect to be with their current employer in the next five years; one in three (34%) say they’re unlikely to remain even just for the next year, reports the Society for Human Resource Management.

Choosing the Right Mix of Full- and Part-Time Workers for Your Business

Assessing Workforce Needs: For businesses, deciding between full-time vs. part-time staff depends on multiple factors, including the nature of the work, demand patterns, and financial considerations. Employers should assess whether their business requires the stability and commitment of full-time employees or the flexibility and cost savings of part-time staff. In some cases, a blended approach may work best, with part-time employees covering peak hours and full-time employees handling core functions.

Legal and Regulatory Considerations: Businesses must also be aware of the legal implications of how they classify employees. Misclassifying part-time workers can lead to legal penalties, particularly if these employees are entitled to benefits or protections under federal or state laws. It’s important for employers to clearly define what constitutes part-time and full-time work in their policies and ensure compliance with regulations, especially in the context of the ACA.

In short, the line between part-time and full-time work can vary widely, but understanding the factors that influence this distinction can help both job seekers and employers make informed decisions. "How many hours is a part-time job?" does not have a one-size-fits-all answer. Instead of thinking about the question in terms of a number, employers should instead carefully consider their operational needs, budget, and compliance obligations when determining their staffing strategy.

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