More than just hours. What U.S. employers need to know about worker classification.
Hiring in the U.S.? Whether you're scaling a startup or expanding
a global team, one of the first questions you'll face is:
Should this role be part-time or full-time?
It’s not just a scheduling decision. In the U.S., part-time vs. full-time status has legal, financial, and cultural implications that can affect everything from benefits eligibility to tax compliance.
Here’s what you need to know...
Defining Part-time vs. Full-Time in the U.S.
There’s no universal legal definition of “full-time” under federal law. But generally:
- Full-Time typically means 30–40 hours per week
- Part-Time is less than 30 hours per week
Employers often define these terms in company handbooks or job descriptions, but thresholds can matter for benefit plans, tax rules, and labor law compliance.
Key Differences That Matter for Employers
1. Benefits Eligibility
Under the Affordable Care Act (ACA), companies with 50+ full-time equivalent employees must offer health insurance to full-time staff (30+ hours/week). Part-time employees are typically not eligible for employer-sponsored benefits unless the company chooses to offer them.
2. Payroll & Withholding
Both full-time and part-time employees are subject to federal and state income tax withholding, Social Security, and Medicare. But part-time roles may involve less administrative overhead in terms of benefits, paid time off, or overtime tracking.
3. Cost & Flexibility
- Part-time roles can reduce labor costs and offer flexibility for seasonal, project-based, or transitional needs.
- Full-time hires often bring greater continuity, retention, and availability but with higher total compensation expectations.
4. Classification Caution
It’s crucial to distinguish between part-time employees and independent contractors. Misclassification can trigger IRS penalties, back taxes, and audits.
What’s Right for Your Business?
Ask yourself:
- Does this role require consistent coverage and full availability?
- Is this a core or supporting function?
- Are we prepared to offer benefits and longer-term commitments?
- How will the classification affect our ACA or FLSA obligations?
If you're an international company hiring U.S. talent for the first time, be aware: cultural expectations around benefits and hours differ from country to country. U.S. employees often see full-time work as tied to benefits, stability, and upward mobility.
Best Practices for Employers
- Document your definitions (e.g., what qualifies as full-time) in employee handbooks or offer letters.
- Be consistent in how you apply benefit eligibility and classification.
- Stay compliant with state-specific laws some states have unique rules around breaks, paid leave, and overtime.
- Consider hybrid roles or phased approaches (e.g., start part-time, transition to full-time) when scaling
There’s no one-size-fits-all approach. The choice between part-time and full-time depends on your team structure, budget, legal obligations, and long-term hiring goals.
But getting it wrong - especially in the U.S. - can be costly. That’s why at Orbiss, we help companies navigate these decisions with clarity and compliance in mind.
