It is confusing when trying to assess part-time employee benefits in the United States. This is because the state does not offer clear guideline on what benefits part time employees can be offered. Employers have great flexibility when it comes to the type of benefits they will give to their employees.

Before you hire a part time employee, it is very necessary for you to specify the number of hours you will expect the employee to work in a given day. Most employers offer 20 hours of work per week. The United States bureau of statistics and economics describes part time workers as employees who work for a maximum of 34 hours in a week. The federal wage, hour law and fair labor standards does not declare the maximum number of hours a part time employee will work per week.

It does not matter the type of benefit you offer your employees. You may be offering benefits such as workers compensation, social security, insurance, disability insurance among other benefits. You should design your package in such a way you will attract more qualified employees to stick to your company and avoid your competitors who may be after stealing them from your company.

Factors to consider when coming up with employees benefits

Health Insurance

Health insurance can be offered to full time employees as well as part time employees. The way you will structure the benefits will make part time employees stick to your company. There are provisions such as affordable care act which define how the package can be offered to your employees.

Retirement Plans

Under the employee retirement income security act, small business owners are required to include part time employees in a retirement plan such as 401(k). This will depend on the number of hours the employee will work per week. This is just like the case of health insurance.

Unemployment Benefits

The part time employees will be required by law to access part time benefits as per the state which they work in. In order to get all details about the type of benefits you will access, just refer to the state agency.

Overtime Laws

Just like full time employees are paid overtime, the part time employees should be paid basing on the same formula. Any hours beyond 40 hours of work time in a week should be paid at a rate one and half times the usual rates the employees are paid.

Special Benefits

Some of the special benefits offered to part time employee include sick days, paid vacation, personal days, telecommuting option, reimbursement, tickets to sporting events among other benefits. The number of hours an employee work in a week defines the way the benefits will be offered.

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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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