Article
11 min read
Do Part-Time Employees Get Benefits? Your FAQs Answered
US payroll

Author
Dr Kristine Lennie
Last Update
July 01, 2025

Table of Contents
What is considered a part-time employee?
What benefits are part-time employees entitled to by law?
What voluntary benefits can employers offer to part-time employees?
What happens if you misclassify a part-time worker or deny benefits improperly?
Streamline US payroll and part-time benefits with Deel
Key takeaways
- There is no federal mandate for employers to offer part-time employees any employment benefits—however, many choose to do so as part of their talent acquisition and retention strategy.
- To avoid misclassification and legal risks, employers must document how they define part-time employees and what benefits they are entitled to in handbooks, HR systems, and job descriptions.
- Deel automates contract creation, time tracking, and compliant payroll processing in all 50 states—making it easy to manage part-time and full-time teams with a single platform.
In the US, there’s no federal definition for what constitutes a part-time employee, with this classification left to the employer's discretion. But when it comes to benefits requirements, legislation can get complicated, with some states requiring protections based on the number of hours worked, the size of the business, and how long the employee has worked for the employer.
In addition, the specific number of hours an employee works—weekly or annually—can trigger requirements around health insurance eligibility and retirement plan access. For HR and finance teams, especially those managing distributed or remote workforces, staying compliant across jurisdictions can quickly become a challenge.
Deel US Payroll features built-in compliance for streamlining payments for hourly and full-time employees across the country. With Deel's all-in-one HR and payroll platform, you can seamlessly create contracts, pay your workers, and manage time tracking, in line with federal, state, and local regulations.
What is considered a part-time employee?
In the US, there is no single legal definition for who qualifies as a full-time or part-time employee. The Department of Labor (DOL) and Fair Labor Standards Act (FLSA) do not specify exact criteria, leaving classification largely to the discretion of the employer. In contrast, the Internal Revenue Service (IRS) and the Affordable Care Act (ACA) use a threshold of 30 hours per week to determine if an employee is eligible for employer-sponsored health insurance coverage.
Most employers define part-time employees as anyone who works fewer than 30 hours per week, though some set the cutoff at 32 or 35 hours. To avoid confusion and prevent misclassification, internal definitions should be clearly documented in handbooks, HR systems, and job descriptions.
Learn more about the key differences between part-time and full-time employees.
What benefits are part-time employees entitled to by law?
Most federal laws—including the Employee Retirement Income Security Act (ERISA) and the FLSA—do not require employers to provide benefits to part-time employees. One exception is the Family and Medical Leave Act (FMLA), which applies to all individuals provided they have worked at least 1,250 hours in the last 12 months.
However, some state and local laws do mandate certain protections for employees, such as paid sick leave or paid time off (PTO) allowances. For distributed or remote teams, this can be challenging, as non-compliance with local employment laws can result in penalties and legal consequences. Founders and HR teams must ensure they stay up-to-date with any evolving legislation to avoid problems.
Here’s a state-by-state breakdown of additional benefits (such as PTO or paid sick leave) required for part-time employees, as of 2025:
State | Paid sick leave for part-time employees | Mandatory PTO law |
---|---|---|
Alaska | Yes, as of July 2025 | No |
Arizona | Yes, 1 hour per 30 hours worked, with accrual caps and rate depending on employer size | No |
California | Yes, 1 hour per 30 hours worked, for employees who work 30+ days/year (local laws may be stricter) | No |
Colorado | Yes, 1 hour per 30 hours worked | No |
Connecticut | Yes, for some covered sectors workers (as of January 2025 covers most of the private sector) | No |
Delaware | Yes, as of January 2026 (Healthy Delaware Families Act) | No |
District of Columbia (D.C.) | Yes, applies to all employees, with accrual caps and rate depending on employer size | No |
Illinois | Yes, applies to all employees as of 2024, with an accrual of 1 hour per 40 hours worked | Yes, as of January 2024 ( “Any Reason” PTO) |
Maine | Yes, 1 hour per 40 hours worked, for employers with 5+ employees | Yes, Earned Paid Leave law |
Maryland | Yes, 1 hour per 30 hours worked, for employers with 15+ employees | No |
Massachusetts | Yes, 1 hour per 30 hours worked (part-time workers are eligible after 90 days) | No |
Michigan | Yes, for employers with 50+ employees (part-time workers are eligible after 90 days) | No |
Minnesota | Yes, 1 hour per 30 hours worked | No |
Missouri | Yes, as of May 2025 | No |
Nevada | Yes, for employers with 50+ employees | Yes |
New Jersey | Yes, 1 hour per 30 hours worked, for a maximum of 40 hours /year | No |
New Mexico | Yes, 1 hour per 30 hours worked | No |
New York | Yes, for employers with 5+ employees | No |
Oregon | Yes, 1 hour per 30 hours worked, if the employer has 10+ employees (6+ in Portland) | No |
Rhode Island | Yes, for employers with 18+ employees and for a maximum of 40 hours/year | No |
Vermont | Yes, for employers with 5+ employees, for a maximum of 40 hours/year | No |
Washington | Yes, 1 hour per 40 hours worked, for employers with 5+ employees | No |
What voluntary benefits can employers offer to part-time employees?
Although there is no federal—and, in most cases, state or local—requirement for employers to provide benefits to part-time workers, many companies choose to offer PTO, retirement plans, or other voluntary benefits as part of their recruitment and retention strategy.
Health insurance
One possible voluntary benefit that employers might choose to offer their part-time employees is health insurance. Options for this include:
- A standard health insurance plan
- A supplemental insurance, such as a critical illness, accident, or hospital indemnity plan
- A limited-benefit plan, which covers a narrow range of health services and is not ACA-compliant
- A minimum essential coverage (MEC) plan, which is ACA-compliant but at the minimum legal threshold, and mainly focused on preventive care
Find out How to Select an Employee Benefits Provider in 9 Steps.
Note: Under the ACA, if a company has 50 or more full-time equivalent (FTE) employees (meaning the total employee hours equals that of 50 full-time employees), the employer must offer health insurance to anyone working 30 or more hours a week. Employees working fewer than 30 hours don’t need to be offered health insurance, but their hours still count toward the company’s 50-employee threshold.
PTO, holidays, or sick leave
Of the 50 US states, 21 and Washington D.C. mandate paid sick leave for employers, including those who work part-time. A handful of states also require employers to provide PTO. Outside of those jurisdictions, employers can choose what (if any) paid holidays or sick leave they wish to offer their part-time workers.
Employers should clearly state in their handbook and HR systems whether these benefits are offered, and under what conditions they can be used—for example, if PTO is accrued over time or subject to eligibility requirements.
Retirement benefits (401(k), IRAs or other plans)
Retirement benefits such as 401(k) plans are a voluntary benefit offered by employers and historically restricted to full-time employees only. However, recent legislation has expanded access to 401(k) plans for part-time workers.
Under the SECURE Act 2.0—effective for plan years beginning in 2025—part-time employees who worked at least 500 hours per year for two consecutive years are eligible for employer-sponsored 401(k) plans. Employers are not required to pay any contributions to these employees' accounts, but they can if they choose to do so.
Other voluntary benefits
Employers can offer a wide range of additional voluntary benefits to their part-time employees in order to improve their job satisfaction and retention. A non-exhaustive list of low-cost but high-impact options includes:
- Vision and dental insurance
- Employee Assistance Programs (EAPs)
- Wellness stipends, gym memberships
- Telehealth and mental health resources
Find out more about the different types of voluntary benefits that employers can offer.
How should you structure a benefits program for part-time employees?
When designing a benefits policy for their part-time employees, employers and HR teams need to build a fair and consistent framework that aligns with the company’s values, strategic goals, and budget constraints. Key considerations to take into account include:
- Defining eligibility criteria for what constitutes a part-time employee
- Verifying any legal requirements that might be in place across the various employee locations
- Specifying what benefits will be offered, how and when employees can take advantage of them (for example, minimum number of hours worked before using PTO)
- Ensuring part-time benefits are both equitable and sustainable
- Structuring benefits in a way that allows them to grow with your team while staying within your resource limits
Businesses must ensure they have the right tools, systems, and processes in place to calculate hours, apply deductions, and administer benefits correctly to avoid costly errors and compliance risks. Find out why real-time payroll processing is essential for successful business operations.
Global Hiring Toolkit
What happens if you misclassify a part-time worker or deny benefits improperly?
Employers who hire part-time employees need to be aware of the potential risks associated with worker misclassification or failure to provide legally mandated benefits. Key pitfalls to be aware of include:
- Failing to properly outline or document eligibility rules for part-time benefits (such as accrual rates or waiting times)
- Failure to observe state or jurisdiction-specific benefits mandates that apply to part-time employees (such as paid sick leave in states like California and New York)
- Failing to properly track part-time hours, preventing you from recognizing when a worker becomes eligible for health benefits (under ACA full-time rules), 401(k) participation (under SECURE Act 2.0), or paid leave thresholds
- Offering benefits to some part-time employees but not others without a clear justification
Misclassification can lead to serious legal and financial repercussions, such as back pay claims, penalties, employee disputes, and audits by the IRS or the DOL. This is why it's essential for employers and their HR teams to regularly review policies, monitor employee classifications and hours, and stay informed of changing regulations.
Streamline US payroll and part-time benefits with Deel
Navigating part-time employee benefits requires balancing legal obligations, internal policies, and evolving workforce expectations.
Less than half of the 50 states require employers to offer paid sick leave to their part-time staff, with a few also mandating PTO. Regardless, many employers might choose to offer additional benefits to part-time employees to improve talent acquisition and retention.
Managing benefits eligibility, deductions, and different state laws can be challenging and complex—especially for small and growing businesses. Deel US Payroll simplifies these processes with built-in compliance and payroll tools that sync easily with your existing accounting software.
Join 35,000+ finance and operations teams already using Deel. Accelerate your payroll, tax, and compliance functions and automate your contract creation. Our all-in-one platform empowers you to hire, manage, and compensate your teams across all 50 states, whether you employ 10 people or 10,000.
Book a demo to learn more.
Deel US Payroll
Disclaimer: This article is intended for informational purposes and should not be considered legal advice. Consult a qualified licensed attorney for help on legal issues.
FAQs
How many hours a week is part-time?
In the US, there is no universal standard for the maximum number of hours an employee can work and still be classified as part-time. However, most employers define part-time employees as those who work 30 hours per week or less.
How many hours are needed for health benefits?
Under the Affordable Care Act (ACA), employers with 50 or more full-time employees (or equivalents) are required to offer health insurance to employees who work 30 hours per week (approximately 130 hours per month), or risk facing penalties.
What is the IRS's definition of a part-time employee?
The IRS does not have a specific definition for a part-time employee. However, for retirement plan eligibility, the IRS defines an individual as a “long-term part-time employee” if they have worked 500+ hours per year for at least two consecutive years.
Does a part-time employee have to pay taxes?
Yes. Part-time employees are subject to the same federal tax rules as full-time employees.
Learn more about how income taxes differ state-by-state.
What is the difference between part-time and seasonal employees?
Part-time employees work fewer hours than full-time staff—typically less than 30 hours per week—and may work on an ongoing basis. Seasonal employees, by contrast, are hired for short, defined periods (such as a summer season) to help with increased workload during that time. Seasonal workers generally work for six months or less.

About the author
Dr Kristine Lennie holds a PhD in Mathematical Biology and loves learning, research and content creation. She had written academic, creative and industry-related content and enjoys exploring new topics and ideas. She is passionate about helping create a truly global workforce, where employers and employees are not limited by borders to achieve success.