How Does ObamaCare Define a Full-Time Employee?

In the past, some states have provided their own definitions of a full-time employee, but now ObamaCare takes the liberty to do so at the Federal level. According to the legislation, a full-time employee is defined as an employee scheduled to work 30 or more hours weekly.

That is a simplified answer. The government has been kind enough to release an 18-page document that goes into great detail, but most employers can quickly use the 30-hour rule to answer the question. If you have a unique situation or something that falls into a gray area, we would advise you to seek counsel on how to classify your employees.

This answer matters because it makes the difference between a business considered small or large, which determines the impact of ObamaCare upon the business.

ObamaCare Definition of Small Business

As defined by ObamaCare, a “small business” is one that has fewer than 50 full-time employees (FTES). These terms are still somewhat deceiving because an employer may have only 10 FTES and hundreds of part-time employees, yet still be considered a small business. See our article on the ObamaCare impact on small business.

ObamaCare Definition of Large Business

ObamaCare has a much greater impact on those businesses that are considered “large,” which is basically any organization with 50 FTES or greater. See our article on the ObamaCare impact on large business.