How Many Hours Are Considered Full-Time for a Job?

Full-time in California typically means 40 hours weekly, but the ACA sets 30 hours as full-time for health insurance eligibility. Understand exempt vs. non-exempt classifications, overtime rules, and state-specific labor protections to ensure compliance.

By Brad Nakase, Attorney

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Table of Contents

1. In California, what does “full-time” mean?

2. What Does a Full-Time Workweek Look Like in Different States?

3. How Your State Defines Exempt and Non-Exempt

4. Hours, Exemption Status, and Their Intersection

5. California Non-Exemption

6. California Full-Time Exempt Workers

7. The Origins of the Traditional 40-Hour Workweek

In California, what does “full-time” mean?

A full-time employee in California is defined as someone who puts in 40 hours a week, according to the Department of Industrial Relations.

But don’t mix up the 40-hour work week with the rules set by the Affordable Care Act, which say that a full-time worker is someone who works 30 hours a week. The Affordable Care Act mandates that businesses with 50 or more FTEs (full-time employees) to provide health insurance to their full-time workers (those who put in 30 hours or more per week on average). These businesses risk fines if they do not supply their full-time workers with affordable health insurance that meets minimal coverage requirements.

What Does a Full-Time Workweek Look Like in Different States?

The United States Department of Labor’s interactive state-by-state map of more than 200 local Labor Wage and Hour offices will help you find out how many hours a week constitute full time work, as well as other information on your state’s labor laws.

How Your State Defines Exempt and Non-Exempt

Generally speaking, wage and hour rules are the primary factors that determine whether an employee is considered exempt or non-exempt. This difference is critical in determining which workers are eligible for minimum wage, overtime compensation, and other employment protections in most states, including California. Certain benefits and protections are available to non-exempt employees who meet the requirements of being full-time employees under California law.

The key distinctions between exempt and non-exempt workers are as follows:

1. Not-exempt workers

Overtime: These workers have a right to overtime compensation. In accordance with the Fair Labor Standards Act (FLSA), the federal norm mandates that employees must get 1.5 times their ordinary rate of pay for any hours worked in excess of 40 in a single week. California is one of the toughest states when it comes to standards, such as paying overtime for any hours worked above 8 in a single day.

Minimum wage: Non-exempt workers are required to receive at least the minimum wage of the state, the federal government, or the local government, whichever is higher. Companies in California are required by law to pay their employees a minimum salary of $15.50 per hour. January 1, 2024 will see a minimum wage hike to $16.

Breaks: Employees may be eligible for lunch and rest breaks according to state rules. Consider the California labor code, which guarantees non-exempt employees a 10-minute break for every four hours worked. If they put in more than five hours a day, they will also get a thirty-minute lunch break.

Maintaining records: In most cases, businesses must maintain meticulous payroll records of all hours worked by non-exempt workers. This aids in making sure that wage and hour regulations are followed.

2. Exempt employees

Overtime: This group of workers is “free” from the regulations that mandate overtime compensation. Therefore, it makes no difference how many hours they put in each week—they will not be eligible for overtime.

Minimum wage: The regulations concerning minimum wage do not apply to exempt workers. Instead, they are often compensated with a salary, which may in some cases exceed a particular threshold.

Evaluation of responsibilities: In most cases, exempt workers are those who fulfill specific requirements related to their work responsibilities as well as their pay rate. The Fair Labor Standards Act (FLSA) outlines key exempt groups, which include administrative, professional, outside sales, computer, and executive staff. There are distinct job-related criteria for each group.

Breaks: Depending on state rules, exempt employees may not always have the entitlement to meals or rest periods.

Salary basis: Payment in many exempt roles is based on a “salary basis,” meaning that the employee receives a set amount each week regardless of their actual work hours.

It is essential for businesses to correctly identify their workers as either exempt or non-exempt according to the income and responsibilities standards. It is possible for errors to result in legal repercussions, a tax penalty, or both. When deciding an employee’s status, companies must take into account both federal and state rules, since state-specific legislation might further complicate matters.

Hours, Exemption Status, and Their Intersection

Assuming they fulfill the requirements for exempt status, such as the wage level and responsibilities test, it is feasible to have a part-time employee who is exempt. The nature and responsibilities of many exempt occupations make them full-time in practice.

The regulations governing overtime pay apply to non-exempt workers regardless of whether they work full-time or part-time. Therefore, overtime pay is due to a full-time non-exempt worker if they put in more than 40 hours per week (or 8 hours per day in some states).

California Non-Exemption

Under California law, unless it can be demonstrated differently, all workers are presumed to be non-exempt. What precisely does this mean?

In other words, it is the obligation of the employer to provide evidence that an employee falls into one of the groups that are exempt. Employers cannot (deliberately or unintentionally) deny workers the rights and protections associated with non-exempt status, such as overtime compensation, thanks to this crucial safeguard. Legal ramifications, such as the need to repay overtime compensation, may result from an employer’s mistakenly classifying a worker as exempt.

California Full-Time Exempt Workers

When you have full-time, exempt workers in the state of California, you might want to think about providing certain benefits to those employees who are eligible for them. These benefits could include paid sick leave, paid vacation time, and supplementary health insurance. Because full-time exempt employees may work more than eight hours without receiving overtime pay, benefits like these might aid in employee retention, happiness, and luring qualified applicants for open positions.

To learn more about paid parental leave, state disability insurance, unemployment insurance, and reimbursement for lost wages, among other state-specific benefits, you can contact the California Employment Development Department.

The Origins of the Traditional 40-Hour Workweek

One of the most iconic corporations in American history laid the groundwork for the conventional 40-hour workweek, which is applicable to full-time employees across the country, including in California.

Ford Motor Company was one of the first businesses in the United States to implement a five-day, forty-hour work week for its employees in its production of automobiles. This change took place on May 1, 1926. Office employees at Ford would also be covered by the policy by the end of that year.

This served as a model for workers in both blue-collar and white-collar occupations. Workers who put in more than forty-four hours per week were guaranteed overtime compensation after the Fair Labor Standards Act was passed by Congress in 1938. After two years of revisions, the legislation was finally changed to lower the work week to forty hours, which became law in the United States for full-time employees.

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