Which major retailers in 2025 offer employer-paid health insurance to part-time workers and what are the eligibility thresholds?
Executive summary
Major national retailers including Starbucks, Costco, Chipotle, Walmart, IKEA, REI and UPS are routinely reported in 2024–2025 sources as extending employer-paid health insurance to many part-time workers, but eligibility rules vary widely—commonly 20 hours per week or an hourly threshold aggregated over a quarter or six months—and exceptions by job class, tenure, union arrangements and state rules create important patchwork effects [1] [2] [3] [4] [5] [6].
1. Which major retailers offer health insurance to part‑time workers — the headline list
Starbucks, Costco, Chipotle, Walmart, IKEA, REI and UPS consistently appear across employer-benefits guides and consumer reporting as major retailers (and retail-adjacent employers) that provide medical coverage to part-time staff: Starbucks requires 240 hours worked in a three‑month window to qualify for benefits including medical plans (roughly 20 hours per week) [1] [5]; Costco extends comprehensive medical, dental and vision plans to part‑timers who work at least about 20 hours weekly [2]; Chipotle’s hourly workforce is reported eligible for a suite of health plans even as part‑timers [3] [5]; Walmart and other large retailers appear on lists noting part‑time eligibility for some roles, though Walmart’s typical threshold is often described as closer to 30 hours for full parity while certain positions can qualify at lower hours [4] [5]; IKEA and REI provide full benefits at around 20 hours per week in many listings [4] [6].
2. Typical eligibility thresholds and the common “methods” employers use
Reported eligibility approaches fall into two patterns: an hourly/week threshold (commonly 20 hours/week) and an accrual/quarterly-hours test (for example Starbucks’ 240 hours over three months) that amounts to roughly a 20‑hour average [1] [2] [4]. Other employers have explicit “average 30 hours per week” standards aligned with ACA definitions for full‑time benefits, though companies sometimes carve out certain professional roles (pharmacists, clinicians, supply‑chain associates) with lower thresholds such as 24 hours where market competition demands it [4]. Unionized coverage—most notably UPS through TeamstersCare—can rely on negotiated hour‑accumulation rules rather than a single weekly cutoff [4].
3. Important caveats: titles, tenure, state rules and voluntary programs
Reporting makes clear that named companies’ programs are not monolithic: eligibility often depends on job classification, where in the country an employee works, time on the job, and whether the employer offers optional or “voluntary” limited plans to part‑timers [7] [8]. Federal law does not require employers to offer health insurance to part‑time workers, and many firms tailor their offers to meet insurer participation rules or to control costs—so an advertised 20‑hour threshold may be subject to minimum-enrollment, probation periods, or regional plan differences [9] [8]. KFF’s analysis underscores the gap: only a minority of part‑time workers end up covered by their own employer even when coverage is available, reflecting both employer choice and administrative limits [10].
4. Where reporting is thin or inconsistent — what cannot be asserted confidently
Aggregated lists from job sites and benefits blogs frequently repeat company claims, but granular, company‑issued plan documents or official filings are not uniformly available in the cited reporting; consequently exact month‑to‑month waiting periods, employee contribution shares, dependent eligibility, or exceptions for specific store roles are unevenly documented in these sources [11] [12] [13]. Several outlets cite “20 hours” as a common cutoff while others cite 30 hours or hybrid accrual tests for the same employer in different years or locales, signaling that definitive, up‑to‑the‑paycheck thresholds often require checking the employer’s current plan documents or state filings [2] [4] [5].
5. Why this patchwork matters for workers and policymakers
The mixed landscape—companies voluntarily extending benefits at 20 hours, accrual tests that approximate that level, and many employers sticking to 30+ hours or refusing part‑time coverage—creates unequal access to employer‑sponsored care and pushes many part‑timers to Marketplace plans or rely on spouse coverage, while policy debates continue over whether to expand employer responsibilities or improve Marketplace affordability for those excluded [10] [9].