Employee Type

What is an Employee Type?

An employee type refers to a specific classification that defines how a worker is hired, paid, and managed by an organization.

This classification determines the employee's work schedule, eligibility for benefits, tax treatment, and rights under labor laws like the Fair Labor Standards Act (FLSA).

Common employee types include full-time, part-time, contract, temporary, on-call, independent contractor, and volunteer.

Each type carries unique features such as compensation method (salary or hourly), job duration, and eligibility for benefits like overtime pay or health insurance.

Employers use employee types to structure their workforce efficiently, ensure compliance with labor regulations, and manage costs.

Understanding your employee type helps you know your rights, responsibilities, and what to expect from your job.

12 Common Types of Employees

1. Full-Time Employees

Full-time employees work a set number of hours each week, usually between 30 and 40, depending on the employer’s policy.

They typically earn a fixed salary that does not change, even if their hours vary slightly. Full-time employees often receive benefits such as healthcare, paid time off, and a 401(k) retirement plan.

The Fair Labor Standards Act (FLSA) does not define what counts as full-time, so each employer sets their own standard.

However, the FLSA requires overtime pay for employees who work more than 40 hours per week.

Most full-time employees are considered exempt and do not qualify for FLSA overtime protections.

To be classified as exempt, they must perform certain duties such as executive, administrative, professional, outside sales, or computer-related tasks and earn at least $35,568 per year.

Because they are exempt, most full-time employees are not eligible for FLSA benefits.

2. Part-Time Employees

Part-time employees typically work less than 30 hours per week and are paid hourly for each hour they work.

These employees know exactly how much they earn and often have the flexibility to request specific hours or days.

Many part-time workers take on multiple jobs to gain experience in different fields. Common part-time roles include retail, food service, sales, and warehouse positions.

Most part-time employees are classified as non-exempt and qualify for FLSA protections, including overtime pay after 40 hours in a workweek.

Because their annual income is usually below $35,568, they are eligible for these protections.

However, eligibility may also depend on their job duties and the hours set by the employer.

3. Contract Employees

Contract employees are hired for a specific period defined in a written agreement.

Their weekly hours can vary depending on the job and employer.

Contract positions offer the advantage of knowing the exact length of employment upfront, and some contracts may be renewed after completion.

Typical contract roles include salespeople, IT technicians, and construction workers.

If contract employees are listed on the company’s payroll, they are usually considered non-exempt and qualify for FLSA benefits, including overtime pay.

While individual contracts may pay less than $35,568 annually, many workers complete multiple contracts in a year or work on several at the same time.

4. Independent Contractors

Independent contractors perform work based on a contract but are not part of a company’s payroll.

They have the freedom to set their own schedules and complete tasks at their own pace, as long as they meet the terms of the agreements.

Common independent contractor jobs include freelance writing, rideshare driving, and food delivery.

Independent contractors are not considered employees and do not qualify as exempt or non-exempt under the FLSA.

As a result, they are not guaranteed benefits such as overtime pay or healthcare through the company.

Their compensation, hours, and work structure vary based on job type, contract length, and the client’s requirements.

5. Temporary Employees

Temporary employees are hired for short-term assignments, often to cover for regular employees who are on leave or to meet increased seasonal demand.

These jobs are ideal for people who want extra income for a limited time or prefer seasonal work.

Temporary employees may work full-time or part-time and are typically paid hourly. They are classified as non-exempt because they usually earn less than $35,568 per year.

As a result, they qualify for FLSA benefits like overtime pay, regardless of how many hours they work each week.

Common temporary jobs include retail during holidays, administrative support, housekeeping, and performing roles.

6. On-Call Employees

On-call employees are required to be available to work during specific hours but may not perform duties the entire time.

Employers may expect them to stay on-site or remain reachable if working remotely.

These roles allow flexibility but also require availability on short notice. Examples include caregivers, public safety officers, security guards, and customer service representatives.

On-call employees are typically paid hourly and classified as non-exempt.

Most earn under $35,568 per year, which means they qualify for FLSA benefits such as overtime pay.

They may work part-time or full-time hours, depending on the employer's needs.

7. Volunteers

Volunteers offer their time without pay and may commit to different schedules depending on their availability.

Volunteer roles help people gain experience and build their resumes while supporting causes they care about.

These positions are typically flexible and temporary, often involving fewer than 35 hours per week.

Volunteers are not considered employees and are neither exempt nor non-exempt under the FLSA.

As a result, they do not qualify for company or federal benefits. Common volunteer roles include internships, animal shelter support, and working with nonprofit organizations or community charities.

8. Seasonal Employees

Seasonal employees work during specific times of the year when a business has increased demand, such as holidays, summer, or harvest seasons.

These jobs are short-term and repeat annually based on the business cycle.

Seasonal employees are usually paid hourly and are classified as non-exempt.

This means they qualify for FLSA benefits like overtime pay.

While they may work full-time or part-time hours during the season, their employment ends when the busy period concludes.

Common seasonal roles include ski instructors, holiday retail associates, lifeguards, and agricultural workers.

9. Interns

Interns are students or recent graduates who work temporarily to gain experience in a specific field.

Internships may be paid or unpaid, depending on whether they meet the FLSA criteria for unpaid internships.

Paid interns are usually classified as non-exempt and receive hourly wages.

Internships can last for a semester, summer, or for the duration of a specific project.

These roles often lead to full-time employment and are common in industries like marketing, technology, media, and finance.

Internships provide valuable training and help young professionals build skills and professional networks.

10. Per Diem Employees

Per diem employees work on an as-needed basis and do not have a fixed schedule.

Employers call them in to cover staffing shortages, special projects, or extra shifts.

These employees are paid only for the hours or days they work.

They are usually classified as non-exempt and qualify for FLSA benefits such as overtime pay when applicable.

Per diem workers offer high flexibility but may not receive company benefits unless they meet hour requirements.

This type of role is common in healthcare, education, and hospitality industries.

11. Commission-Based Employees

Commission-based employees earn income based on sales, performance, or results.

They do not rely on a standard hourly wage or fixed salary.

These employees can be full-time, part-time, or independent contractors, depending on how the company classifies them.

If they meet FLSA exemption standards, such as earning over $35,568 annually and working in sales, they may not qualify for overtime.

This pay structure is common in real estate, auto sales, and insurance.

Commission-based jobs reward performance but often come with income variability.

12. Probationary Employees

Probationary employees are new hires working under a trial period before gaining full employee status.

During this time, employers evaluate their performance, behavior, and job fit.

The length of a probationary period varies by company and typically lasts 30 to 90 days.

Employees in this phase may have limited access to benefits.

Once the probation period ends and the employee meets expectations, they usually become regular full-time or part-time employees.

Exempt vs. Non-Exempt Employee

An exempt employee is not entitled to receive overtime pay under the Fair Labor Standards Act (FLSA). To be classified as exempt, an employee must meet specific criteria, including earning at least $35,568 per year on a salary basis and performing job duties that fall under exempt categories. These categories typically include executive, administrative, professional, outside sales, or certain computer-related roles. Exempt employees are usually paid the same amount regardless of how many hours they work each week.

In contrast, a non-exempt employee is eligible for overtime pay, which means they must receive 1.5 times their regular hourly rate for any hours worked beyond 40 in a workweek. Non-exempt employees are typically paid hourly, and their pay depends directly on the number of hours worked. Most part-time, temporary, and lower-wage roles fall under this classification.

The main difference between exempt and non-exempt employees lies in their eligibility for overtime pay, their salary structure, and the type of work they perform.

For a deeper breakdown of the key differences, you can read our full guide on exempt vs. non-exempt employees.

Typically Exempt Employee Types

These employees usually meet FLSA exemption criteria (salary ≥ $35,568 and qualifying job duties):

• Full-time employees (when in executive, administrative, professional, outside sales, or certain tech roles)
• Commission-based employees (if they meet sales exemption rules and salary threshold)
• Some salaried contract employees (if duties and salary meet exemption standards)

Typically Non-Exempt Employee Types

These employees are usually paid hourly and qualify for overtime pay under FLSA:

• Part-time employees
• Temporary employees
• Seasonal employees
• Contract employees (on payroll, hourly, and under the salary threshold)
• On-call employees
• Interns (if paid; unpaid interns follow different rules)
• Per diem employees

Not Classified as Exempt or Non-Exempt

These individuals are not considered employees under FLSA and do not qualify for overtime:

• Independent contractors
• Volunteers
• Unpaid interns (when they meet specific legal criteria)