By Rieva Lesonsky
Are you adding part-time employees to your work force as a way to pick up the slack without having to provide the salary and benefits that full-time workers require? Or are you shifting formerly full-time workers to part-time status—either because your business’s workload has dwindled or because you simply can’t afford to pay them their full-time salaries?
If you’re doing either of these things, you’re not alone. More companies are turning to part-time workers to save money. But what many small businesses don’t realize is that sometimes part-time workers can open the doors to full-time legal headaches.
Part-time workers are often viewed as a less complicated option to full-time workers. But in reality, part-time workers are subject to state and federal labor laws, just as full-time workers are. And because small business owners may think part-timers can be treated more loosely, they often don’t take the same precautions they would when dealing with a full-time hire.
Here are some things to consider before you hire a part-time employee.
- Understand how overtime regulations and rules regarding mandated meal and rest breaks apply to part-timers. For instance, in some states, an employee who only works one day a week could still qualify for overtime if he or she works more than 8 hours in one day.
- Know what benefits are triggered and when. For example, if a part-time worker logs a certain number of hours in a year, he or she may become eligible for being included in your company’s retirement plan or for leave laws such as the Family Medical Leave Act.
- If the part-time worker is the first employee you’re hiring, it’s especially important to know the right steps to take. For instance, hiring just one part-timer means you have to buy workers’ compensation insurance to cover that person.
- Understand how the addition of a worker affects your company’s size status and what that might mean in terms of rules and regulations. Adding one part-timer might put your company into a larger size category, which could mean you have to comply with certain federal or state rules you didn’t before. It could also affect your eligibility under federal contracting opportunities, such as whether your business is considered small or disadvantaged.
Small businesses often get into trouble with employees when they decide to “wing it.” Even if your company is tiny and you’re hiring just one part-timer, it’s important to create an employee handbook and decide on specific benefits and policies before you bring that person on board.
Work with your attorney and/or a human resources consultant. Employment law is complex and varies from state to state, so it’s best to get help from an expert in setting up your plan. If you start off on the right foot with your first part-timer, part-time workers can be a source of help—not headaches.
Image by Flickr user Phillie Casablanca (Creative Commons)
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