Remember back when you were in high school, trying to earn a bit of extra cash with a part-time job in order to support your flare for fashion or video game addiction?
Maybe you worked your tushy off at a part-time job in college in order to pay for rent or tuition.
Or maybe you had a full time job as an adult, but needed to pick up a part-time job on the side in order to make ends meet.
We’ve all had a part-time job at some point.
Now, you’re starting your own business. And you’re the one who is looking to employ a few part-timers. Regardless of when or why you were once employed part-time, it’s important that you remember what it felt like to be in those shoes, and to support your part-timers’ needs to the best of your ability.
At the same time, you must consider your business’s budget in providing your part-timers with decent benefits – without breaking the bank.
Here is a list of the 5 Do’s and Don’ts for employing part-time workers.
Image courtesy of Tax Credits
DO set your company’s definition for part-time employment. The federal government allows each company to differentiate between full and part-time employees on its own. Part-time employees usually work 35 hours or less per week, while full-time employees work 40 or above. Whatever cut-off you decide to go with, remember that consistency is vital.
DO know what the common benefits or insurance coverage are for part-time employees. This way, you’ll be able to offer your workers a competitive set of benefits without going overboard. Common benefits for part-time employees include a 401k retirement savings plan and basic health insurance. Less common benefits are dental and vision insurance coverage, maternity leave, paid sick days, and paid vacation.
DO your research. According to findlaw.com part-time employees who work 1,000 hours or more during a calendar year may be eligible for retirement benefits under the Employee Retirement Income Security Act (ERISA). Under the Fair Labor Standards Act (FLSA), part-time employees must be treated in the same manner as full-time employees in regards to minimum wage, overtime pay, record keeping, and child labor. Knowing laws such as these will make you a more respected employer and will help you to avoid potential lawsuits.
DON’T offer part-time employees more than you can afford. Yes, keeping your employees happy is extremely important. And your workers will be extremely happy with a set of excellent benefits. However, they will be extremely unhappy when your company runs out of money and they no longer have jobs.
DON’T ignore the law. According to the federal government, all part-time employees are entitled to receive some type of benefits from their employers. These mandated benefits include social security and workers compensation insurance. Social security is deducted from employees’ paychecks and then matched with a payment to the government. Workers compensation insurance is purchased by the employer.