Part-Time vs. Full-Time: What Employers Need to Know

Trying to figure out whether to hire part-time or full-time help? The difference isn’t just about hours—it affects your payroll, benefits, scheduling, and even compliance with labor laws.

In this guide, we’ll break down what counts as part-time vs. full-time, how each impacts your business (from pay structure to overtime rules), and how to choose the setup that makes the most sense for your team and your budget.

Key differences between part-time and full-time employment

Let’s start with a side-by-side look at the main differences between part-time and full-time employment.

1. Hours per week

• Full-time: Usually 35–40 hours per week. Some businesses draw the line at 37.5, depending on how breaks are handled.
• Part-time: Typically anything under 30–35 hours per week.

There’s no universal rule, so it’s up to your business to define both.

2. Pay structure

• Full-time: Can be hourly or salaried. Salaried employees get a set paycheck every pay period—even if one week runs long and the next is light (within reason).
• Part-time: Usually paid hourly, based on actual hours worked.

3. Overtime eligibility

• Full-time: Eligible for overtime if they’re non-exempt. A non-exempt employee is someone who isn’t exempt from overtime pay, according to the Fair Labor Standards Act (FLSA).
• Part-time: Same deal—if they’re non-exempt and go over 40 hours in a week, they earn 1.5x their regular rate.

Overtime depends on classification, not schedule. If someone’s non-exempt, they get OT—whether they’re full-time or not.

4. Benefits

Full-time workers are more likely to get benefits, but it’s not guaranteed. Why? Employment laws vary by business size and location. More on that below.

5. Job stability

• Full-time: Full-time jobs usually mean more job stability for employees. Think steady hours, predictable schedules, and long-term investment through training and promotion.
• Part-time: Part-time work can still be reliable—especially in retail, care, or service roles—but there’s often less consistency and fewer chances to move up the ladder. However, part-time jobs workers can enjoy a better work-life balance as they have more autonomy over when they work, and for how long. 

6. Taxes

Full-time and part-time employees both pay the same types of taxes—federal and state income tax, Social Security, and Medicare. What changes? The amount withheld. That’s based on how much someone earns, not how many hours they work. So if a part-timer brings in less income overall, their tax withholding will be lower too.

How many hours per week is part-time vs. full-time?

So, how many hours is considered part-time? Depends on who you ask:

• According to the IRS, working 30+ hours per week (or 130 hours/month) counts as full-time for health insurance requirements. 
• The Bureau of Labor Statistics (BLS) uses 35 hours—but that’s just for tracking labor data, not compliance.
• The US Department of Labor (DOL) says that employers usually decide what full-time and part-time employment means.

In other words, there’s no single legal definition of what is considered part-time vs. full-time. But how you define it can have a big impact. Why? Because classification affects how you run payroll, track overtime, offer benefits, and stay compliant. It’s not just a title, it’s how your business operates.

What this means for payroll—and how Homebase helps.

If a part-time employee regularly averages more than 30 hours per week, they may need to be reclassified as full-time.

That’s especially important if your team is nearing 50 full-time equivalent (FTE) employees—the point where health insurance requirements under the Affordable Care Act (ACA) start to apply.

Not sure how to stay on top of it all? Homebase Payroll automatically tracks employee hours, flags changes in classification, and keeps your records clean—so you stay compliant without extra admin work.

Do part-time employees get benefits?

Sometimes, but not always. What you offer depends on your business size, location, and internal policies. Full-time employees are more likely to get benefits like health, dental, or vision coverage, paid time off, and 401(k) access. Part-time employees usually aren’t entitled to the same benefits. But many businesses still offer perks like flexible schedules, employee discounts, or limited health benefits to help attract and retain great people.

Legally, you’re not required to offer benefits unless rules like the ACA or Family and Medical Leave Act apply. But some states set their own standards, even for part-time staff. Make sure you check with local regulations to ensure you’re complying with state law.

Here are a few examples:

• In California, employees are eligible for paid sick leave once they’ve worked 30 or more days in a year.
• In Massachusetts, companies with 11 or more employees must offer up to 40 hours of paid sick time annually.
• In New York, any business with 5 or more employees must provide paid sick leave—even to part-time staff.

Bottom line? The difference between full-time and part-time benefits often comes down to local laws and how your company defines eligibility. Just be sure your employee benefit policy is clear and applied consistently across the board.

Pay and overtime rules for part-time vs. full-time employees.

Part-time employees are usually paid hourly. So, if they clock 20 hours a week, they’re paid for 20 hours—simple as that. Hours may vary week to week, and time is typically tracked using a clock-in system or time tracking app.

Full-time employees, on the other hand, can be hourly or salaried. Salaried employees get a fixed paycheck (which means they get a fixed annual salary) each pay period (usually biweekly), based on a standard 35–40 hour workweek. But being a salaried worker doesn’t automatically mean they’re exempt from overtime.

So, who qualifies for overtime? Under the Fair Labor Standards Act (FLSA):

• Non-exempt employees—which includes most hourly workers and many salaried ones—must be paid 1.5x their regular rate for any hours worked over 40 in a week.
• Exempt employees don’t get overtime pay. But to be classified as exempt, they have to meet all three of these conditions:
  
  • They’re paid a salary.
  • They earn at least $1,128 per week.
  • Their job duties fall under a specific exempt category (like executive, administrative, or professional).

This applies to both full-time and part-time employees. If a part-time worker puts in more than 40 hours in a week and isn’t exempt, they’re legally owed overtime—same as a full-timer.

Example: A part-time retail associate who works 45 hours during the holiday rush must be paid overtime for the extra 5 hours. It doesn’t matter if they’re “part-time” on paper. FLSA rules still apply.

Pros and cons of part-time vs. full-time employment.

Every small business is different. What works for one team may not work for another—and that’s okay. Here’s a breakdown of the upsides and downsides of hiring part-time and full-time employees so you can make the call that fits your goals and budget.

Pros of hiring part-time employees.

Built-in flexibility

Need someone for just the lunch rush or a weekend shift? Part-time roles let you schedule only what you need without overcommitting on hours.

Lower labor costs

Since part-time workers usually don’t qualify for full benefits, you can keep payroll lean—especially during slower seasons.

Wider talent pool

From college students and parents to retirees and side hustlers, part-time roles attract folks who aren’t looking for a traditional 9–5 but still want meaningful work.

Affordable specialized help

Need support for a niche task or short-term project? A part-time hire can bring the skill without the long-term commitment.

Fresh energy

Fewer hours can mean sharper focus, especially in customer-facing or high-volume roles.

Cons of hiring part-time employees

Less continuity

Part-time employees can view their role as short-term or supplemental, leading to more turnover and possible retraining.

Scheduling can get messy

Juggling multiple part-timers with limited availability can feel like solving a puzzle every week. But with the right tools—like Homebase’s free scheduling software—you can build, adjust, and share schedules in minutes, not hours.

Lower employee engagement

If someone only works 10–15 hours a week, they may not be as connected to your company culture, team goals, or long-term vision.

Communication gaps

Part-time employees might miss team meetings or key updates if they’re not scheduled that day. That’s why it helps to have a simple way to keep everyone in the loop—like using Homebase’s employee app with built-in messaging.

Split focus

Many part-time workers have other jobs or responsibilities, which can affect availability or consistency.

Confusion around perks

If you offer benefits that only apply to full-time employees, be crystal clear about who qualifies. Misunderstandings can hurt morale.

Pros of hiring full-time employees

Consistent coverage

Full-time staff usually follow steady schedules, which makes shift planning and day-to-day operations easier to manage.

Higher commitment

Full-timers are more likely to see their job as a long-term investment, not just a paycheck. That often means better performance, lower turnover, and stronger loyalty.

Stronger team dynamics

When people work together regularly, they build better relationships. Full-time roles support collaboration, communication, and trust.

More room for growth

Full-timers are more likely to step into leadership roles or take on added responsibility as your business grows. Full-time employees also usually get to enjoy more career development opportunities. 

Better return on training

Training takes time and effort. With full-time employees, you’re more likely to see that investment pay off over time.

Cons of hiring full-time employees.

Higher total cost

Between salaries, benefits, PTO, and payroll taxes, full-time roles are a bigger financial commitment—especially for small businesses.

Less flexibility

Need to scale down quickly? Adjusting full-time hours or reducing roles is more difficult than shifting part-time coverage.

Risk of employee burnout

Longer shifts, more responsibility, and less flexibility can take a toll—especially in fast-paced industries like healthcare, hospitality, or retail. 

Not always necessary

If the role doesn’t need 35+ hours per week, hiring full-time might stretch your budget without adding value.

How to decide: Which is right for your business? 

Part-time or full-time? The answer depends on what your business needs today—and what you’re planning for tomorrow. Here’s a quick way to think through the decision.

Hire full-time if:

• You need consistent coverage—like someone who can open or close, or hold things down during your busiest hours.
• You’re ready to invest in long-term growth by training employees who’ll stick around and take on more responsibility.
• The role requires a steady, predictable schedule—think managing inventory, payroll, or customer service.

Full-time employees often bring more stability, stronger engagement, and a deeper sense of ownership. So, if you're building a team for the long haul, this is usually the way to go.

Hire part-time if:

• Your business has fluctuating needs—like a café that’s slammed in the mornings or a retail shop that’s busier on weekends.
• You’re working with a tight budget or testing out whether a new role is worth expanding.
• You need extra hands during busy hours, for specific tasks, or to cover staff gaps without locking in more hours than you need.

Part-time roles let you stay flexible without locking into more hours than you need. They’re also a low-risk way to test out a new role—or a new hire—before going all in.

Whether your team is full-time, part-time, or a mix of both, Homebase helps you schedule smarter, track hours, run payroll, and stay compliant—without the spreadsheets, late nights, or last-minute scrambles.

Try Homebase for free.

FAQs about part-time vs. full-time jobs.

Is 30 hours a week part-time or full-time?

It depends. Under the ACA, 30 hours counts as full-time for health insurance. But many companies still treat 30 hours as part-time when it comes to other benefits or classifications.

Can a part-time job turn into a full-time job?

Yes. Many employers promote high-performing part-timers to full-time roles when there’s business need and mutual interest.

Do full-time employees get paid more per hour?

Not necessarily. Full-time employees often have lower hourly rates than part-time employees in the same role, but they usually get benefits, which adds up. Some specialized part-time roles even pay more per hour.