To calculate Full Time Equivalents (FTEs), which item is excluded?

• A. Holidays
• B. Leave hours
• C. Regular hours
• D. Overtime hours worked

Answer: (D)

Full Time Equivalents measure how many full-time workloads a team represents based on regular, planned work hours. To calculate FTEs, you add up the regular hours employees are scheduled to work in the period and divide by the standard full-time hours for that period. Overtime hours worked are excluded because they are extra hours beyond the normal schedule and don’t reflect the standard workload used to size a full-time position. For example, if two workers each have 40 regular hours in a week and one also logs 8 overtime hours, the FTE count stays based on the 80 regular hours, not the 88 total. Regular hours define the baseline of a full-time load, while overtime is considered additional and not part of the standard FTE calculation.