Employee classifications can affect eligibility for benefits, duration of employment, compensation, and employment expectations. Employee classifications should be defined clearly. Classifications should be drafted to avoid any implication that employment is anything other than at-will (employers are cautioned not to refer to an employee’s status as full-time permanent because such a classification is inconsistent with the concept of at-will employment).
Employers may define full-time or part-time employment status at any level they wish. However, simply calling someone a part-time employee will not make the individual a part-time employee for the purpose of compliance with certain federal and state employment laws which specifically or essentially define the term. For instance, if an employee who is labeled part-time under an employer’s policy works more than 1,250 hours per year, the employee may be eligible for a job-protected leave of absence under the federal Family and Medical Leave Act (FMLA), if the employer is covered by that statute and the employee otherwise meets the criteria for eligibility. Full-time and part-time may also be defined differently for purposes of eligibility for certain benefits (such as participation in the company's group health plan).
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