What Constitutes Full-Time or Part-Time Work in Indiana?
Indiana employers decide for themselves how many hours constitute full-time work or part-time work. Although most employers both within and outside Indiana consider somewhere around 35 to 40 hours a week as full-time employment, the employer has the discretion to set hours that accommodate his business needs and staffing expenses.
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Fair Labor Standards Act
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The U.S. Department of Labor enforces the Fair Labor Standards Act, which governs minimum wage, working hours, conditions, overtime pay and exempt classifications. The FLSA doesn't address what constitutes full-time or part-time employment. According to the federal labor department and the FLSA, the decision about how many hours an employee has to work as a full-time employee or a part-time employee is left up to the employer.
Indiana Department of Labor
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Indiana gives employers carte blanche to determine what constitutes full-time or part-time employment. The Indiana Department of Labor enforces many of the provisions that the FLSA regulates. There aren't any Indiana state laws about the number of hours that constitute full-time and part-time employment.
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Overtime Pay
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Even though Indiana employers can decide for themselves what constitutes full-time and part-time employment, both federal and state laws apply to overtime pay. According to the FLSA and the Indiana wage and hour rules, employees who work more than 40 hours in a work week must receive overtime compensation. Overtime compensation is one and a half times an employee's hourly rate. To be fair to employers and employees, standard practice is to consider a number between 35 and 40 hours per week as full-time work. Using the federal and state laws on overtime pay as a yardstick for determining what constitutes full-time is standard practice. Many employers set part-time hours at anything that's below the full-time threshold. That being said, part-time doesn't necessarily mean half-time, although there are employers who consider part-time hours roughly 20 hours per week.
Fair Employment Practices
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Where employee benefits are concerned, full-time versus part-time work also is up to the employer. Employers can extend benefits to full-time workers only or they can provide benefits to both full-time and part-time workers. Incidentally, few employers provide benefits to both full-time and part-time employees; therefore, those who do usually have the most coveted positions and low turnover.
Considerations
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Employers should have written policies about what the company considers full-time work or part-time work. This policy should be part of the discussion during the recruitment and selection process and it should be published in the employee handbook. Regardless of how many hours employers consider full- or part-time work, they must communicate which employees receive employer-paid benefits and which employees don't. For example, employers shouldn't say the company provides benefits to all employees if it only provides benefits to full-time employees. Employers have an obligation to keep their employees informed, and this is one of those critical pieces of information that employees have a right to know.
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