What Is Considered Full-Time in California For Health Insurance?

Can An Employer Change an Employee from Full-Time to Part-Time in California?

California workers must know that their part-time or full-time hour status in California is at their employer’s discretion. Part-time workers are typically ineligible for benefits, as opposed to full-time workers. However, employees who work 40 hours per week is considered as full-time and receive health insurance benefits.

California employers have much more control over this situation as opposed to workers. For example, an employee regularly works 38-39 hours per week. Sometimes, the employee even works 39.5 hours per week. Yet, the business can still legally identify the worker as “part-time” as long as they do not work 40 hours per week.

However, another important aspect of the ACA is that it incentivizes providing health care to employees in some situations. So, how does the ACA make acquiring health benefits easier for some employees?

The ACA requires companies with 50 or more full-time workers to choose between two options for providing benefits. Under the ACA, larger companies must either:

• Offer healthcare benefits to an employee who works 30 hours per week or more, or 130 hours per month

• Pay a tax penalty

Many businesses elect to provide their employees with benefits because it benefits the workers and avoids paying a costly tax fee.

It is important to note that while larger companies with 50 or more employees must make this decision, smaller businesses are not held to the same rules.

At What Point do California Workers Get Health Benefits?

Small California businesses can decide which of their employees deserves benefits. Benefits typically contain dental and medical plans, as well as disability insurance and life insurance.

However, even full-time employees in the state do not automatically receive benefits from some companies. This decision is left up to the preference of the company.

However, when companies in California offer benefits to full-time workers, the company’s rules to decide which employee receives benefits must remain the same for each worker. Therefore, when companies decide how they will classify employees and who will receive benefits, they should do so carefully, because these decisions will impact everyone.

For example, suppose a company in California decides that their employees must work a minimum of 35 hours per week is considered as full time in California. In that case, that classification means all employees working 35 hours per week are full-time. However, an employee from a different department who works 35 hours per week cannot be considered part-time. Therefore, if full-time workers receive benefits at 35 hours per week, all employees who work 35 hours a week benefit from the company.

Sometimes, small businesses try to save money by only providing certain employees with benefits, even though other workers log the same amount of hours. Employees who cannot collect benefits based on an employer’s unfair or discriminatory practices should contact an experienced attorney because they may be able to file a discrimination suit.

Most employers in California understand the importance of rightfully classifying their employees and communicating their standards for providing benefits. While employers need to have a system in place for classifying workers and a logical plan regarding who receives benefits, it is also important for workers to ask questions and stay informed.

For example, before an employee accepts a job offer in California, they should be certain that:

• The employee understands the way the company classifies full-time and part-time workers

• The employee understands if they will be eligible for benefits.

• The employee has read California’s Labor Code to fully understand the differences between part-time and full-time employees.

Questions Regarding California Employees and Benefits

Many employees in California have questions about their employer’s policies or their potential for benefits. Here are some of the most commonly asked questions:

When an Employer Deprives a Worker of Benefits, What Can the Worker Do in Response?

When employees believe they have a right to benefits, but their employer will not pay them, they should contact an experienced employment lawyer. Whether the problem is a misunderstanding or something more serious, a skilled attorney can help organize the case’s details and determine if the company is doing something wrong.

Employees who worry about legal fees should be able to find a lawyer who practices contingency litigation, meaning that the worker will only need to pay if they win the case.

What is the Definition of Full-Time in California?

The ACA changed California’s definition of a full-time employee. Whereas many considered full-time work to be 40 hours per week, now an individual who works a minimum of 30 hours per week is considered a full-time worker. However, we often hear employers and employees referring to full-time as 40 hours because that definition has existed for a long time in the business world.

Are full-time workers in California Automatically Paid Benefits?

Large companies with 50 or more full-time workers must offer benefits to employees who work a minimum of 30 weekly (130 hours a month). If a company decides not to provide benefits to these employees, they have to pay a tax benefit. Smaller companies, however, are not held to this state-wide standard. As a result, companies with 50 or fewer workers can decide how they will provide benefits and to whom.