Can businesses hire part-time employees without benefits?

Hiring Part-Time Employees Without Benefits in Minnesota

In Minnesota, businesses can hire part-time employees without providing benefits commonly associated with full-time employment. However, there are important operational considerations to keep in mind when managing part-time staff.

Key Operational Points for Hiring Part-Time Employees

• Benefits Eligibility: Minnesota law does not require employers to offer benefits such as health insurance or paid leave to part-time employees. Benefits eligibility often depends on company policy and federal regulations.
• Compliance with Federal Laws: Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees must offer health insurance to employees working 30 or more hours per week on average. Part-time employees working fewer hours typically are not eligible.
• Employee Classification: Properly classify workers as part-time to ensure correct payroll processing, tax withholding, and benefit administration.
• Payroll and Recordkeeping: Maintain accurate records of hours worked and wages paid to part-time employees to comply with Minnesota wage and hour laws.
• Workers’ Compensation and Unemployment Insurance: Part-time employees in Minnesota are generally covered under workers’ compensation and unemployment insurance, so businesses must include them in these programs.

Practical Steps for Minnesota Businesses

• Define part-time status clearly in your employee handbook or contracts.
• Set up payroll systems to track hours accurately for part-time employees.
• Review your benefits policies to specify eligibility criteria based on hours worked.
• Ensure compliance with Minnesota labor laws and federal regulations regarding employee classification and benefits.
• Consult with your insurance provider about workers’ compensation coverage for part-time staff.

As of 2026, staying updated on both Minnesota state and federal employment regulations will help you manage part-time employees effectively without unnecessary benefit costs.