Employers that offer better employee benefits find candidates significantly more willing to work for them; it’s an easy equation. But do employers have to offer benefits to part-time employees? Matters of benefits and employee support systems grow more hazy when it comes to part-time workers. With the rise of side gigs and moonlighting roles, it has become increasingly common for workers to opt for multiple part-time roles over full-time opportunities.
Whether you’re a new business trying to get your policies in order or an older one that’s only just exploring the benefits of part-time workers, it is important to understand the rules around offering benefits to these part-time employees to ensure you get it right. So, are part-time benefits required?
The rules surrounding benefits for part-time employees can be a little unclear, but understanding the legalities can help ensure compliance. (Image: Pexels)
Do Employers Have to Provide Benefits to Part-Time Employees?
Many organizations do provide some additional support and benefits to workers who do not work for them full-time, but it isn’t necessarily something that is mandatory. Offering benefits to part-time workers could make it easier to retain their services and win their loyalty, but doing so isn’t always a priority for all employers. To begin with, the definition of a part-time worker is up for interpretation.
Typically, full-time workers are those who work at least 30 hours per week at an organization, or around 130 hours per month. That is what the IRS and the Affordable Care Act (ACA) believe, and that is how they are generally classified. There are no strict regulations on how many hours one has to work to qualify as a part-time worker, and as such, businesses are largely free to determine whether they want to offer any additional benefits for this category.
However, certain federal benefits are distributed based on hours worked. Therefore, employees working a specified number of hours, regardless of their part-time or full-time status, may qualify for these benefits, as some federal regulations focus on the extent of work performed rather than the employee’s classification.
Are Part-Time Benefits Required by Federal Laws?
Due to the lack of a clear definition of a part-time worker, some complications arise. Some federal benefits are determined by the scale of the employer’s businesses or the hours worked by employees. Even those employees who are marked as part-time workers may qualify for some benefits if they have clocked in enough time on the job.
Under the Family and Medical Leave (FMLA) Act, businesses with over 50 employees may be expected to provide employees with appropriate leave benefits if any employee has met the required criteria, for example, working over 1,250 hours in the past year. Similarly, the Employee Retirement Income Security Act (ERISA) requires employees who have clocked in over 1,000 hours over 12 months to become eligible for inclusion in the company’s retirement plans.
Do Part-Time Workers Receive Overtime Pay?
Overtime pay is provided to workers who work beyond the standard workweek, defined by 40 hours, according to the Fair Labor Standards Act (FLSA). To qualify for overtime pay, workers are not defined by whether they are classified as part-time or full-time workers, but by their status as exempt or non-exempt employees.
Part-time employees are not always expected to work over 40 hours per week, but if they do exceed the number, they could be eligible for overtime pay. If there are state-specified overtime laws, such as those in California, those will be applicable as well. The standard rate of overtime pay is 1.5 times the hourly rate that is being paid for each hour worked beyond the standard workweek.
Should You Provide Benefits for Part-Time Employees?
While employer benefits regulations for part-time employees are not as defined as those for full-time employees, it is always in a company’s best interest to offer benefits to part-time employees. This increases the competitive standing of any organization in the eyes of prospective job seekers and also increases their chances of securing the top talent in the industry.
Setting up jobs with part-time benefits not only attracts candidates but also helps with retention and productivity, encouraging workers to hold on to their roles rather than find alternate opportunities. Are part-time employee benefits required? Not necessarily in all regards, but it is still highly recommended.
How to Establish Part-Time Employee Benefits?
Many organizations offer part-time employees the same type of benefits and support as full-time employees, but on a smaller scale. Employees who come into work every day, albeit for a few hours only, still benefit from paid time off or reasonable sick leave policies. Travel assistance, medical checkups, insurance assistance, holiday bonuses, and other benefits are just as relevant to part-time employees.
To establish a good part-time employee benefit scheme, study the population of workers that typically work for your organization, and evaluate which of the full-time employee benefits may also feasibly be provided for them. While HR may have to work a little harder to ensure a stable system is set up to provide these benefits to part-time workers, it is worth the effort to ensure that your organization offers benefits to part-time employees as well.
Setting up Jobs with Part-Time Employee Benefits Is a Good Idea
While there are only a few cases where benefits have to be extended to part-time employees, it is an act of respect to ensure that even part-time employees are included in any benefit planning. Playing nice is always worth the effort, as it establishes a firm basis on which to build relationships with employees.
Organizations may also find it easier to eventually bring some of these part-time employees on board as full-time workers when there is an opening, as their familiarity with the business will ensure they require minimal onboarding. From wellness perks to tuition support, there is a whole range of perks that might be of interest to your part-time employees.
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