Full-Time Hours: What Every Employer Should Know

The number of hours an employer defines as a standard, full-time workweek, typically between 30 and 40 hours. This definition is important for benefit eligibility under laws like the ACA.
Jimmy Law

What Are Full-Time Hours?

Full-time hours refer to the standard workweek an employer expects employees to work to be considered employed on a full-time basis. Here's where it gets interesting: there's no single federal definition of what "full-time" hours actually means. The number can vary depending on which law you're looking at, what industry you're in, and ultimately what your company decides.

Most businesses recognize full-time employment as working 35 to 40 hours per week, with 40 hours being the traditional standard. But that's more of a convention than a hard rule.

The lack of a universal definition means employers have flexibility to set their own thresholds, but they also need to navigate multiple legal frameworks that use different hour requirements for different purposes.

The 40-Hour Standard: How We Got Here

The 40-hour workweek didn't fall from the sky. It has its roots in the Fair Labor Standards Act of 1938, which initially set the overtime threshold at 44 hours before Congress amended it to 40 hours in 1940. This was a huge victory for labor rights at the time, establishing a balance between worker protections and business needs.

Before the FLSA, employees in factories and other industries routinely worked 60, 70, or even 80 hours a week. The 40-hour standard was designed to protect worker health and wellbeing while still allowing businesses to operate effectively.

Nearly 85 years later, that 40-hour benchmark remains deeply embedded in American work culture, even though the nature of work has changed dramatically.

Legal Definitions That Matter

When it comes to full-time hours, two major federal laws use different definitions, and understanding both is critical:

FLSA: The 40-Hour Overtime Threshold

As stated earlier, the Fair Labor Standards Act doesn't actually define "full-time" employment at all. Instead, it establishes 40 hours as the point where overtime pay kicks in for non-exempt employees. Work more than 40 hours in a seven-day workweek, and non-exempt employees must receive time-and-a-half pay for those extra hours.

This 40-hour mark became the de facto standard for full-time work, but technically, the FLSA doesn't care whether you call someone full-time or part-time. It only cares about paying them correctly.

ACA: The 30-Hour Health Insurance Rule

For purposes of the Affordable Care Act, a full-time employee is someone who works an average of at least 30 hours per week (or 130 hours per month). This matters enormously for employers with 50 or more full-time equivalent employees, who must offer health insurance to their full-time staff or face penalties.

Yes, you read that right: the ACA considers someone working 30 hours to be full-time, while most companies (and the FLSA's overtime rules) use 40 hours. This disconnect creates real challenges for employers trying to stay compliant while managing benefits costs.

Why Two Different Standards?

The FLSA's 40-hour threshold is about protecting workers from excessive hours without additional compensation. The ACA's 30-hour threshold is about ensuring access to health insurance. Different goals, different numbers.

Smart employers track both thresholds carefully. An employee working 32 hours per week might not trigger overtime, but they're full-time under the ACA and entitled to health insurance if you're a large employer.

Defining Your Full-Time Threshold

Since there's no federal mandate, you get to decide what full-time means at your company. Common approaches include:

Whatever you choose, document it clearly in your employee handbook and apply it consistently. Inconsistent definitions between departments create confusion, potential discrimination claims, and compliance headaches.

Your threshold affects more than just terminology. It determines benefits eligibility, sets employee expectations, influences labor costs, and plays into workforce planning.

Federal Law Requirements

Minimum Wage and Overtime

All employees, regardless of whether they're classified as full-time or part-time, must be paid at least the federal minimum wage for all hours worked, and non-exempt employees must receive overtime pay at one and a half times their regular rate for hours worked beyond 40 in a workweek. Remember: being full-time doesn't automatically mean you're exempt from overtime.

Affordable Care Act Obligations

Employers with 50 or more full-time equivalent employees must offer affordable, minimum value health insurance to at least 95% of their full-time employees (those working 30+ hours per week) and their dependents.

The penalties for non-compliance aren't trivial. For 2025, the penalty was $2,900 per full-time employee (excluding the first 30) if the employer fails to offer coverage to at least 95% of full-time staff. That number adjusts annually for inflation.

Family and Medical Leave Act

Full-time employees are more likely to qualify for FMLA protections simply because they accumulate hours faster, but FMLA eligibility is based on total hours worked, not full-time status. An employee needs to have worked 1,250 hours in the previous 12 months for an employer with 50+ employees within 75 miles.

State and Local Considerations

Some states and cities have their own rules that affect full-time workers:

Paid Sick Leave: Many states mandate paid sick leave, and some require it to be pro-rated for full-time versus part-time employees based on hours worked.

Predictive Scheduling Laws: Cities like San Francisco, Seattle, and New York have laws requiring advance notice of schedules and penalties for last-minute changes. These often apply to full-time employees in specific industries like retail, hospitality, and food service.

Benefits Requirements: A handful of states require certain benefits for full-time workers or mandate equal treatment between full-time and part-time employees on an hourly basis.

Always check your state and local requirements. What's legal in Texas might not fly in California.

Full-Time Benefits: What's Standard?

While the law doesn't require most benefits for full-time employees, offering a competitive package is standard practice for attracting and retaining talent.

Legally Required

Commonly Offered

Full-time employees typically receive comprehensive benefits packages that part-time employees don't. This benefits differential is one of the biggest practical distinctions between full-time and part-time status.

Exempt vs. Non-Exempt Full-Time Employees

Here's a critical distinction that trips up many employers: being full-time and being exempt from overtime are two entirely separate classifications. Be sure to read about the definitions, differences, and test for these categories.

Managing Full-Time Schedules

The traditional 9-to-5, Monday-through-Friday schedule is far from the only way to structure full-time work.

Traditional Schedule

Eight hours a day, five days a week. It's familiar, predictable, and easy to manage, but it's becoming less common as flexibility becomes a competitive advantage.

Compressed Workweeks

Four 10-hour days instead of five 8-hour days. Employees get a three-day weekend every week while still working 40 hours. Popular in manufacturing, healthcare, and government sectors.

Another variation: the 9/80 schedule, where employees work 80 hours over nine days in a two-week period, giving them every other Friday off.

Flexible Start and End Times

Employees work their full 40 hours but can choose when to start and finish within certain parameters (like arriving between 7-9am and leaving 8 hours later). This accommodates different chronotypes, family responsibilities, and commuting patterns.

Hybrid and Remote Full-Time

In Q2 2025, 24% of new job postings were for hybrid roles and 12% were fully remote. Full-time employees increasingly work from home part or all of the time, with their hours tracked by deliverables rather than physical presence.

Technologies with scheduling and communication capabilities like Breakroom help coordinate these distributed full-time teams effectively.

Shift Work

For 24/7 operations, full-time employees work rotating or fixed shifts: days, evenings, nights, weekends. Each employee still hits their 40 hours, just not on a traditional Monday-Friday schedule.

Full-Time vs. Part-Time: Key Differences

Factor Full-Time Part-Time
Hours Worked Typically 35-40+ hours weekly Usually under 30-35 hours weekly
Benefits Comprehensive package standard Limited or no benefits common
ACA Requirements Must offer health insurance (if ALE) Not required to offer
Overtime Eligible if non-exempt Eligible if non-exempt
Schedule Consistency Generally more consistent Often more variable
Career Development More advancement opportunities May have fewer opportunities

Challenges of Full-Time Work

While full-time employment offers stability and benefits, it comes with real challenges for both employers and employees.

Overwork and Burnout

For exempt employees, there are no FLSA limits on working hours, which means organizations have no financial or legal reason to discourage employees from working long hours. Many salaried employees work far more than 40 hours each workweek.

This can be disastrous for businesses. Burned-out workers are less productive, more likely to quit, and have higher rates of absenteeism and health issues.

Work-Life Balance Struggles

A standard 40-hour schedule (plus commuting time) leaves limited hours for family, personal responsibilities, exercise, and rest. For employees with caregiving responsibilities or side commitments, full-time work can feel overwhelming.

Rigid Expectations

Traditional full-time schedules don't accommodate everyone's needs. Parents, students pursuing degrees, people with health conditions, and those with variable energy levels may struggle with the inflexibility of full-time work.

The Always-On Culture

Remote full-time work can blur boundaries even further. Without clear start and end times, some employees find themselves "always available" rather than working a defined full-time schedule.

Flexible Full-Time Arrangements: A Modern Approach

Recent data shows that 96% of US employees need flexibility, though only 47% currently have it, and 80% of employees consider flexible work arrangements a deciding factor when evaluating job offers.

Smart employers are reimagining what full-time work can look like:

Results-Oriented Work: Focus on deliverables rather than hours worked. If someone completes their full-time workload in 32 hours instead of 40, maybe that's fine.

Core Hours Plus Flexibility: Require everyone to be available during certain core hours (say, 10am-3pm) but let them flex the remaining hours.

Unlimited PTO: Some companies are eliminating PTO accruals entirely for full-time employees, trusting them to take time off as needed while maintaining performance.

Seasonal Variation: Allow hours to flex seasonally based on personal or business needs, as long as they average out to full-time over the year.

Four-Day Workweeks: A growing number of companies are experimenting with 32-hour, four-day workweeks at full-time pay, with promising results for productivity and retention.

Research shows that 85% of businesses report increased productivity after implementing flexible work policies.

Best Practices for Managing Full-Time Employees

Define It in Writing

Your employee handbook should clearly state:

Track Hours Accurately

Even for exempt employees, tracking hours provides useful data about workload balance and helps identify burnout risks before they become crises.

For non-exempt employees, accurate time tracking is legally required and protects you from wage and hour claims.

Monitor for Threshold Changes

Keep an eye on employees who might be approaching or crossing important thresholds:

Respect Boundaries

Just because someone is full-time doesn't mean they should be working 60 hours. Encourage employees to disconnect after hours, take their PTO, and maintain work-life boundaries.

Be Transparent About Expectations

If your full-time role truly requires 45-50 hours to perform well, say so upfront during hiring. If it's really a 40-hour role, don't let scope creep turn it into unpaid overtime for exempt employees.

Consider Flexibility

Data shows that 76% of employees would stay longer at companies that offer flexibility, and 75% rank workplace flexibility as their top benefit. You don't have to go fully remote or adopt a four-day week, but even small flexibilities (occasional work-from-home days, flexible start times) can significantly boost retention.

Documentation and Compliance

What to Track

For all full-time employees:

For non-exempt full-time employees:

ACA Reporting

If you're an applicable large employer, you must file Forms 1095-C and 1094-C to report health coverage offered to full-time employees. This requires tracking:

State-Specific Requirements

Some states require additional documentation around:

The Bottom Line

Full-time hours sound straightforward, but the reality is more nuanced. Between the FLSA's 40-hour overtime threshold and the ACA's 30-hour full-time definition, employers need to track multiple standards simultaneously.

The traditional 40-hour, office-based workweek is evolving. Hybrid arrangements, flexible schedules, compressed workweeks, and results-oriented approaches are all reshaping what "full-time" means in practice. Companies that embrace this flexibility while maintaining clear expectations and proper compliance will have an edge in attracting and retaining talent.

Whatever full-time looks like at your organization, document it clearly, apply it consistently, track hours accurately, and stay compliant with federal, state, and local requirements. And remember: full-time employment should support both business needs and employee wellbeing. When those are in balance, everyone wins.

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