FTE Calculation Formula:
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Full-Time Equivalent (FTE) is a unit that represents the number of full-time hours worked by an employee. In California, 1 FTE typically equals 2080 hours per year (40 hours/week × 52 weeks).
The calculator uses the standard FTE formula:
Where:
Explanation: The equation converts any number of hours worked into the equivalent number of full-time positions.
Details: FTE calculations are essential for workforce planning, budgeting, compliance with labor laws, and determining employee benefits eligibility in California.
Tips: Enter total hours worked. The calculator will determine what portion of a full-time position those hours represent based on California's 2080-hour standard.
Q1: Why is 2080 hours used for FTE in California?
A: 2080 represents the standard full-time work hours in a year (40 hours/week × 52 weeks), which is commonly used for FTE calculations in California.
Q2: How is FTE different from headcount?
A: Headcount counts each employee as 1, while FTE accounts for hours worked. Two part-time employees might equal 1 FTE.
Q3: Does California have different FTE calculations for different industries?
A: While 2080 is standard, some industries may use different benchmarks. Always check specific industry regulations.
Q4: How is FTE used in California labor laws?
A: FTE determines employer size for compliance with various California labor laws and healthcare requirements.
Q5: Can FTE be more than 1 for a single employee?
A: Typically no, as 1 FTE represents full-time work. Overtime doesn't increase FTE but may affect other calculations.