This study examined whether hours of parental employment were associated with child behaviors via parenting practices. The sample included 2,271 Australian children aged 4-5 years at baseline. Two-wave panel mediation models tested whether parenting practices that were warm, hostile, or characterized by inductive reasoning linked parent's hours of paid employment with their child's behavior at age 6-7 years. There were significant indirect effects linking mother employment to child behavior. No paid employment and full-time work hours were associated with more behavioral problems in children through less-warm parenting practices; few hours or long hours were associated with improved behavioral outcomes through less-hostile parenting practices. These findings may have implications for developing policies to enable parents to balance work and family demands.