Part-Time Employee Status and Benefits
When setting up a company, one of the most important decisions that you need to make is how you want to staff your company. This decision comes down to deciding whether you want part-time or full-time employees and how to distinguish between the two. While federal law states that the company has the ability to determine how many hours constitutes a full-time versus a part-time employee, there are certain federal regulations regarding benefits of which your company should be aware, as they do not necessarily apply to just full-time employees.
At Slater, Kennon & Pugh, Ltd.LLP, our Austin business formation lawyers can answer any questions you may have regarding starting your business and staffing decisions. Contact us at 512-472-2431 to speak with a knowledgeable lawyer who can help you ensure your business gets started on the right foot.
Benefits and the Law
According to federal law, when your company elects to offer health insurance and retirement benefits, employees must be allowed to participate in these plans according to the number of hours they work, not their employment status. Federal regulations state:
- If your company offers a health insurance plan, any employee who works 30 hours or more regularly per week is considered eligible and should be able to enroll if they so wish.
- According to ERISA, any employee who works at least 1,000 hours in 12 months or less must have the option of participating in the company retirement and savings plan.
Knowing this and other vital information is imperative to making sure that your company is within federal and state regulations and can help you to avoid costly lawsuits if an employee claims that substantial violations have taken place. A qualified business attorney can help you make sure your company is compliant.
Contact Us
The Austin business formation attorneys at Slater, Kennon & Pugh, Ltd.LLP, are prepared to be of assistance whether you are launching a start-up or seeking to make the transition from a non-employer firm to employer firm status. Contact us by calling 512-472-2431 today.