The number of hours that constitutes part-time employment is not governed by a single, universal legal standard. Instead, the definition changes significantly depending on the context, such as whether it relates to a company’s internal payroll policies, eligibility for certain federal benefits, or state-mandated protections. Understanding these varying thresholds is necessary because an employee’s classification can have major consequences for their access to benefits, their hourly pay, and their overall financial stability.
The Common Understanding of Part-Time Work
The widely accepted, non-legal definition of part-time work generally refers to any schedule that is substantially less than the traditional 40-hour workweek. Most employers and workers view a schedule of fewer than 35 hours per week as the benchmark for part-time status. The U.S. Bureau of Labor Statistics (BLS) classifies employees who work between one and 34 hours per week as part-time for its data collection purposes.
Within the workplace, companies often set an internal part-time threshold that falls between 20 and 29 hours per week. This range allows employers flexibility in scheduling while keeping the employee’s hours below the level that would trigger federal health coverage mandates. Part-time roles are commonly found in the retail, food service, and hospitality sectors, where shifts are often structured to meet fluctuating customer demand.
Federal Labor Law and the Lack of a Universal Definition
The primary federal law governing wages and hours, the Fair Labor Standards Act (FLSA), does not define or mandate a threshold for what constitutes part-time or full-time employment. The FLSA focuses on minimum wage requirements and the rule that non-exempt employees must be paid overtime for any hours worked over 40 in a single workweek.
Because the FLSA is silent on status classification, employers are free to set their own definitions for internal purposes like scheduling and eligibility for company-sponsored benefits. Whether an employee is classified as part-time or full-time does not change the application of the FLSA’s core wage and hour protections.
The Critical Threshold: Part-Time Status Under the Affordable Care Act
The most significant federal definition for employment status is established by the Affordable Care Act (ACA), which focuses on the employer mandate for health coverage. For determining an Applicable Large Employer’s (ALE) obligation to offer health insurance, the ACA defines a full-time employee as one who works an average of at least 30 hours of service per week, or 130 hours per calendar month.
Working fewer hours than this 30-hour threshold classifies an employee as part-time under the ACA for health coverage purposes. If an ALE does not offer affordable, minimum value coverage to employees averaging 30 or more hours, the employer can be subject to a tax penalty if the employee secures subsidized coverage through a public Health Insurance Marketplace.
The ACA requires employers to track employee hours over a “measurement period” to determine if variable-hour workers meet the 30-hour average for a subsequent “stability period.” This tracking system is the main driver behind why many companies strategically cap part-time hours below the 30-hour mark.
How Employers Set Internal Part-Time Definitions
While the ACA sets a legal boundary that employers must not cross to avoid penalties related to health insurance, companies maintain discretion to set their own policies for other operational purposes. Many employers establish their own internal full-time threshold at 35 or 40 hours per week, which is higher than the ACA’s 30-hour mandate.
Employers use these internal definitions to manage benefit eligibility, scheduling rules, and job responsibilities. For instance, a company might define a part-time employee as anyone working under 32 hours per week for its paid time off (PTO) policy, even though the ACA only requires tracking the 30-hour mark for health insurance. Clearly defining these internal statuses in an employee handbook is important for consistent management and to prevent employee misunderstandings about benefits eligibility.
State-Specific Rules for Part-Time Workers
Most state labor laws do not provide a separate definition for part-time status that overrides the federal FLSA, but some states have enacted regulations tied to hours worked for specific benefits. State and local laws can mandate that part-time employees accrue benefits like paid sick leave based on hours worked, regardless of their employment status.
In states such as California and Washington, employees earn paid sick leave at a rate of one hour for every 30 or 40 hours worked, respectively, applying to both full-time and part-time staff. These state-level mandates ensure that part-time workers gain access to protections, even if their hours are insufficient to qualify for company-sponsored benefits.
The Impact of Part-Time Status on Benefits and Pay
The classification of an employee as part-time or full-time is important because it dictates access to employee benefits and can affect compensation. Part-time employees are less likely to receive company-sponsored major medical health insurance; while 88% of full-time staff receive medical benefits, only about 23% of part-time employees do. This difference means part-time workers often rely on public exchanges or separate coverage.
Part-time status frequently limits eligibility for paid time off (PTO), paid holidays, and employer matching contributions to retirement plans. The SECURE Act now requires employers to allow long-term part-time workers who log at least 500 hours annually for two consecutive years to participate in a 401(k) plan. Studies indicate that part-time workers, even when controlling for factors like education and industry, face an hourly wage penalty, earning less than their full-time counterparts for similar work.