full-time equivalent (FTE)
A full-time employee is anyone on a payroll who works an average of 30 hours or more a week. Under the Affordable Care Act (ACA), employers must include part-timers in their company head count. For example, two half-timers are equal to one full-timer, so a business with 40 full-timers and 20 half-timers would have 50 full-time-equivalent employees (FTEs), and thus would have to offer health benefits or pay a penalty. The law does not require employers to cover part-time workers, but to count them in determining their "large employer" status.
- Part of Speech: noun
- Industry/Domain: Health care
- Category: Health care regulations
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Creator
- ARedmon
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(United States)