Federal and State laws
generally do not define the terms of full-time, part-time, or temporary
employees. This leaves the employer with the flexibility to categorize their
employees. Most often, these classifications are based on the number of hours
worked and the duties performed. Typically, the classification determines
eligibility for benefits.
Basis for Classification
Employees
usually fall into three major categories: (1) Full-time; (2) Part-time; and (3)
Temporary.
You may want to
use the eligibility requirements under your insurance benefits plans (many
health care plans exclude part-time employees who work less than a specific number of hours per week). However, the definition chosen will not affect the
employee's eligibility for legally mandated benefits, such as worker'
compensation, unemployment compensation, unpaid family and medical leave, and
military leave.
Also, note that
the Fair Labor Standards Act (FLSA) further classifies employees as eligible or
ineligible for overtime pay and refers to them as being either exempt or
non-exempt from the Act's provisions.
Full-time Employees
A full-time
employee is generally defined as one who works a normal workweek for an
indefinite period. Since the FSLA sets 40 hours as the maximum number of hours
worked before employers must pay overtime to non-exempt employees, you may use
that number as their normal workweek. (You can also use 37 1/2 hours or even
35 hours, depending on business hours and meal schedules.) Full-time employment
could also be defined according to part-time employment hours. For example, if
part-time employment is defined as 30 hours a week, then someone who works more
than 30 hours per week could be classified as full-time.
Part-time Employees
Part-time
employees work fewer hours than the normal full-time schedule but are employed
on an ongoing basis and typically receive some benefits. Part-time employment
may mean irregular hours or workdays. A common definition of part-time
employment is an employee who works less than 30 hours per week.
Employers may
choose to provide their part-time employees with a pro-rata share of benefits
such as sick leave, vacation, and other paid absences based on the number of
hours worked.
Temporary Employees
Temporary
employees may work full or part-time hours. What makes the employee status
"temporary" is that the worker is hired for a particular project or for a
finite period. Because of the short-term nature of employment, temporary
employees generally do not receive any benefits other than those required by
law.
Some practices
use temporary workers to screen potential full-time candidates. Because some
temporary employees may have an increased expectation of advancing to regular
employment and eligibility for benefits, employers should make it clear that
temporary workers are being hired for a limited period and are not eligible for
benefits.
Employers should
explain the temporary nature of the job in a letter or other written document
stating an approximate limit for the period that a worker is expected to be
employed and give the option for the employer to extend as needed.
In
addition, employers should monitor the status of temporary employees so that if the limited duration of their employees changes, the employee can be reclassified
and correctly offered benefits they may entitle to. Failure to do so may
conclude with a misunderstanding and potential legal claim.
