Understanding Full-Time Employment Laws In California

what constitutes a full time employee in california

Understanding the distinction between part-time and full-time employment in California is crucial for both employers and employees, as it determines their rights, benefits, and protections under state law. While the standard definition of full-time employment in California is 40 hours per week, the Affordable Care Act (ACA) and company policies may influence this classification, with the ACA defining full-time as 30 hours per week. This distinction impacts various factors, including healthcare benefits, overtime pay, and unemployment insurance, which vary between part-time and full-time employees. Additionally, California's 4-hour minimum shift law, also known as the show-up pay law, ensures employees are compensated if they are called in but work less than half of their normal shift. Understanding these nuances is essential for compliance with state regulations and ensuring employees receive their entitled benefits.

Characteristics Values
Standard definition of full-time hours 32-40 hours per week
ACA definition of full-time hours 30 hours per week
California Department of Industrial Relations definition of full-time hours 40 hours per week
Overtime eligibility After 40 hours per week or 8 hours per day
Overtime rate 1.5x regular rate for up to 12 hours worked per day or first 8 hours on the 7th consecutive day of work per week; 2x regular rate beyond that
Minimum monthly salary for exempt employees Twice the California minimum wage
Sick leave Accrued at 1 hour per 30 hours worked
Vacation pay Not legally required, but can be offered to full-time and part-time employees
Unemployment insurance Available to both full-time and part-time employees
Health insurance Required for companies with 50 or more full-time employees
Retirement plans Required to be offered to both full-time and part-time employees if provided
Minimum shift time 4 hours

cycivic

Full-time work hours

The number of hours that constitute full-time work in California is generally considered to be between 32 and 40 hours per week. However, there are various laws and regulations that define full-time work hours in California differently, and it's important to note that company policies and state laws may also dictate variations in the number of hours considered full-time.

The California Labor Code defines full-time employment as 40 hours per week. This definition is consistent with the Fair Labor Standards Act, which was enacted in 1938 and amended two years later to establish the 40-hour workweek for full-time employment in the United States. This standard was set by the influential Ford Motor Company, which adopted the five-day, 40-hour workweek for its employees in 1926.

The Affordable Care Act (ACA) also plays a role in defining full-time work hours in California. Under the ACA, large employers with 50 or more full-time-equivalent employees are required to provide health insurance coverage to their full-time employees working 30 hours or more per week. This definition of full-time employment by the ACA is specifically for the purpose of determining eligibility for health insurance benefits.

Additionally, California wage laws and company policies may also impact the definition of full-time work hours. For example, the California Employment Development Department allows both part-time and full-time workers to draw unemployment compensation, and employers are not legally required to provide paid time off or vacation pay. However, if an employer chooses to offer these benefits, they must be available to both full-time and part-time employees.

It's worth noting that the distinction between full-time and part-time employment in California primarily relates to benefits and compensation. While certain benefits are legally required for employees who work between 30 and 40 hours per week, health care plans and overtime pay are typically associated with full-time employment. Part-time employees who work more than 40 hours in a week are also eligible for overtime pay, which is calculated at one-and-a-half times the regular rate of pay for hours worked beyond eight hours in a workday or 40 hours in a week.

cycivic

Benefits

In California, full-time employees are entitled to various benefits, including healthcare, overtime pay, and paid sick leave. While the state does not mandate most benefits, employers who choose to offer them must comply with regulations governing their provision and management.

Healthcare Benefits

California employers are not required to provide healthcare benefits to full-time employees. However, under the Affordable Care Act (ACA), larger employers with 50 or more full-time employees must offer healthcare benefits to those working at least 30 hours per week or 130 hours per month. Alternatively, they can choose to pay a tax penalty. Smaller employers have the discretion to offer healthcare benefits, and if they do, they must provide them uniformly to all full-time employees.

Overtime Pay

Full-time employees in California are typically entitled to overtime pay when they work beyond the standard 40-hour workweek or eight-hour workday. The overtime rate is generally 1.5 times the regular rate of pay for hours exceeding eight in a day or 40 in a week. For shifts longer than 12 hours, the overtime rate doubles to twice the regular rate. Additionally, employees working more than six consecutive days earn overtime for any hours exceeding eight on the seventh day.

Paid Sick Leave

Both part-time and full-time employees in California are entitled to paid sick leave (PSL) under the California Family Rights Act (CFRA). Employers must provide a minimum of three workdays of PSL, which can be taken in day or hour increments. If an employee takes PSL in hourly increments, the employer must allow a minimum of 24 hours.

Other Benefits

While not mandated by California state law, employers may choose to offer other benefits such as paid vacation time, paid holidays, life insurance, and severance pay. Providing these voluntary benefits can enhance job satisfaction, boost employee morale, and attract and retain top talent. Additionally, employers in California are required to reimburse employees for necessary work-related expenses, including home internet access costs and cell phone bills for remote workers.

cycivic

Health insurance

In California, the definition of a full-time employee with regards to health insurance is someone who works at least 30 hours a week or at least 130 hours a month. This definition was introduced by the Affordable Care Act (ACA), which also incentivizes employers to provide health care to employees.

Before the ACA, a full-time employee was understood as someone working a complete 40-hour workweek, with those working fewer hours considered part-time. However, despite the ACA's redefinition, many employers and employees still associate full-time work with a 40-hour workweek.

Under the ACA, larger companies with 50 or more full-time employees are mandated to offer health insurance to these full-time workers or pay a tax penalty. This requirement is known as the employer mandate. Small businesses with fewer than 50 employees are not subject to the same rules, and it is left to their discretion to decide which employees receive benefits.

California employers can legally differentiate benefits packages for full-time and part-time employees, but this must comply with anti-discrimination laws. While most benefits are not required by California state law, employers must provide any benefits promised in an employment contract. Additionally, federal law requires employers with 50 or more full-time equivalent employees to provide health insurance that meets minimum essential coverage (MEC).

To avoid penalties, employers can choose to offer a Minimum Essential Coverage (MEC) plan or an Affordable Care Act (ACA)-compliant health plan. A penalty of $2000 per eligible employee is imposed if coverage is not offered, and a penalty of $3000 per employee is charged if a provided plan is not ACA-compliant and the employee receives a tax credit from the Exchange.

Albany Plan: Constitution's Predecessor

You may want to see also

cycivic

Overtime

In California, overtime is officially counted after eight hours of work per day and 40 hours per week. This means that employees who work more than eight hours in a day or more than 40 hours in a week are generally eligible for overtime pay. The rate of overtime pay is typically 1.5 times an employee's regular rate of pay for any hours worked between eight and 12 hours in a day. If an employee works longer than 12 hours in one shift, their overtime pay is doubled for the additional hours. Employees who work more than six consecutive days in a week also earn overtime for the seventh day, with their rate of pay doubled for any time worked over eight hours on that day.

Certain employees are exempt from overtime laws, including executive, administrative, and professional employees earning at least twice the minimum wage. Additionally, if an employee was working an alternative workweek schedule of no more than 10 hours a day as of July 1, 1999, and this schedule was based on an individual agreement between the employee and employer, the employee may continue to work this schedule without receiving overtime pay. However, the employee may revoke their authorization for this schedule with 30 days' written notice to the employer.

California law also prohibits employers from misclassifying employees as independent contractors to avoid paying overtime. If an employer is found to be in violation of misclassifying employees, they may be subject to fines of up to $25,000, and employees may be entitled to compensation. Employers who violate minimum wage or overtime laws may be required to pay unpaid wages, interest, attorney fees, and court costs.

cycivic

Exemptions

In California, the distinction between exempt and non-exempt employees is crucial as it determines which employees are entitled to overtime pay, minimum wage, and other employment rights. Non-exempt employees, whether full-time or part-time, are subject to overtime rules and are entitled to overtime pay if they work over 40 hours in a week or more than 8 hours in a day.

Exempt employees in California are generally those who:

  • Earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment. The salary must be a fixed amount that does not vary based on the number of hours worked or the quality of the work performed. The minimum salary for exempt employees in 2023 was $5,373 per month or $64,480 annually, calculated by doubling the applicable minimum wage of $15.50/hour, multiplying that amount by 40 hours per week, and then multiplying by 52 weeks and dividing by 12 months. Given the new minimum wage of $16 per hour, effective January 1, 2024, the minimum annual salary for exempt employees will increase to $66,560.
  • Have primary duties that consist of administrative, executive, or professional tasks. This is sometimes referred to as the "white-collar duties" test.
  • Exercise discretion and independent judgment in their jobs, involving comparing and evaluating possible courses of action and making decisions.

There are also specific exemptions for certain job categories, including:

  • Union employees: These employees have their own tests to determine exempt or non-exempt status, which are distinct from the three-part test mentioned above.
  • Computer professionals: Certain computer professionals are exempt from overtime if they are engaged in specific high-level duties such as systems analysis or software design.
  • Salespeople: There are different tests for exempt status for outside salespeople and inside salespeople.
  • Artistic professions: Relatively few individuals qualify for exemption in artistic professions as most of those who have sufficient control over the nature of their work and work hours are self-employed.
  • Teachers: Private school teachers who teach kindergarten through high school may be exempt if they meet certain requirements, including having a bachelor's degree or valid teaching credentials, regularly exercising independent judgment and discretion, and earning a salary that meets certain criteria.
  • Doctors: Doctors must earn at least $90.07 per hour or $187,345.60 per year to be considered exempt.

It is important to note that simply paying an employee a salary does not automatically make them exempt, and employers must be careful not to misclassify employees as this can have legal consequences. California law presumes all employees are non-exempt unless proven otherwise, and the responsibility falls on the employer to demonstrate that an employee fits within one of the exempt categories.

Frequently asked questions

A full-time employee in California works between 32 and 40 hours per week. However, the number of hours may vary according to company policies and state laws.

Full-time employees in California are entitled to various benefits, including health insurance, overtime pay, and sick leave. Employers may also offer additional perks such as vacation pay and retirement plans.

The ACA defines full-time employees as those working 30 hours or more per week. This definition is important for determining whether an employer is required to provide health insurance coverage to their employees.

Yes, California has several laws in place to protect the rights of full-time employees, including minimum wage laws, meal and rest break requirements, overtime pay regulations, workplace safety standards, and retaliation protection. Additionally, employees are protected by laws such as the 4-hour minimum shift law, which secures compensation for employees who are called in but work less than half of their normal shift.

Written by
Reviewed by
Share this post
Print
Did this article help you?

Leave a comment