Benefits for Part-Time Employees
Determining what benefits small business owners should offer part-time employees can be confusing. Employers have some flexibility when it comes to what benefits to offer for part-time employees due to a lack of federal regulations on the matter. The Fair Labor Standards Act (FLSA) does define full-time or part-time employees.
Prior to hiring a part-time employee, employers usually create a policy specifying the number of hours an employee would regularly be scheduled to work as a part-time employee. Small business owners have the ability to craft their own policy regarding part-time employee benefits. These policies and benefits may entice employees away from competitors and help enhance employment engagement.
Health Insurance—Small business owners may not be required to offer health insurance to part-time employees, even if they offer it to full-time employees. It all depends on how the employee is defined, their insurance policy, and the provisions of the Affordable Care Act. Some insurance providers have requirements regarding the weekly number of hours an employee must work in order to qualify. A minimum of 20 hours is usually necessary for eligibility.
Retirement Plans—Under the Employee Retirement Income Security Act (ERISA), small business owners may be required to offer retirement plans for part-time workers. Similarly to health insurance benefits, retirement plans may also depend on the number of hours an employee works.
Unemployment Benefits—Part-time employees are entitled to unemployment benefits based on the state in which the business is operating.
Overtime Laws—The FLSA requires covered employers to pay part-time workers any owed overtime, just as they do with full-time workers. Any hours in addition to 40 hours worked in a week are paid at one and one half times the employee’s regular rate of pay.
Although employers have flexibility in which benefits he or she chooses to offer their part-time employees, it is important for both employers and employees to be aware of the policies and benefits that part-time employees are entitled to.
If you, or someone you know, is facing legal issues in the workplace, United Employees Law Group has answers. Call today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.
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