Understanding How Many Hours is Considered Part Time

Before the Affordable Care Act (ACA), “full time employees” were generally defined as those working a 40-hour workweek. Those working fewer hours – whether 10, 25, or another number – were considered part-time employees and often did not receive the same benefits as the full-time employees. The introduction of the ACA brought significant changes to these definitions, aiming to provide more consistent healthcare coverage across different types of employment.

However, under the ACA, full-time workers are those working an average of at least 30 hours per week, or at least 130 hours per month. That discrepancy has prompted many employees to ask questions like:

• What is considered a full-time employee?
• Does my employer have to offer benefits to me if I work 30 or more hours?
• How many hours do I need  to qualify for health insurance?
• How many hours do I need to work to be considered a full time employee?

The answer  to these questions is, “It depends.” Several factors determine employee full time and part time status. We will unpack these questions here and also address the impact for employers and business owners. 

How many Hours Can a Part Time Worker Work?

Employers with 50 or more full-time or full-time equivalent (FTE) employees – are required to offer health care benefits to those working at least 30 hours a week or at least 130 hours a month. If an employer does not offer employee benefits, the business is subject to a tax penalty.

For small employers – those with fewer than 50 full-time employees – offering employee benefits is discretionary. There’s no requirement to offer benefits. The decision is left up to the employer.

Seasonal workers do not have to be included in the employer’s full-time equivalent employee calculation.

If a smaller employee not subject to the ACA employer mandate does choose to offer health coverage to its employees, that coverage must meet certain ACA group health coverage specifications.

If you have a workforce of full-time and part-time employees, and you are unsure about how to calculate your group size, visit HealthCare.gov or CalChoice.com to use the ACA calculators offered on those sites. Here is a helpful chart to also help you understand the requirements for offering health insurance to your employees depending on the nature of your business.

Rules for offering health insurance to part time employees:

Category	Criteria	Requirement
Large Employers	50 or more full-time or FTE employees	Must offer health care benefits
	Employees working at least 30 hours a week or 130 hours a month	Must offer health care benefits
	If benefits are not offered	Subject to a tax penalty
Small Employers	Fewer than 50 full-time employees	Offering benefits is discretionary
	Employees working at least 30 hours a week or 130 hours a month	No requirement to offer benefits

Should You Offer Part Time Workers Health Insurance Benefits?

While many employers with fewer than 50 FTE equivalent workers choose to offer employee benefits, there’s no requirement that they do so. The only requirement is that employers be equitable in their treatment of employees. The same standards apply to all employees when determining benefits eligibility. If the employer sets a 30-, 35-, or 40-hour requirement, it applies to all workers. Offering benefits to one employee who works 36 hours, and requiring others to work 40 hours to be benefit-eligible could trigger a discrimination lawsuit.

In a competitive talent marketplace, many smaller employers choose to offer employee benefits because it helps them attract and retain their top employees. Workers appreciate those benefits, too – especially health insurance. In the 2021 MetLife Annual Benefit Trends Study, 85% of employees put health insurance at the top of their “must have” list – and another 10% say health insurance is “nice to have.”

Talk With a Health Insurance Broker to Learn More

If you want to find out if you’re getting the most value for your benefit dollars – or if you want to add employee benefits for your employees – talking with a broker is a great place to start. Most brokers offer their services at no cost to you. If you don’t have a broker, you can search for one on the MyCalChoice website.