Inside the 32-Hour Workweek Act

Over the last few years there have been rumblings about reducing the workweek, especially as productivity has skyrocketed with technology advancements. France, for instance, has a 35-hour workweek already, while Norway and Denmark are sitting at 37 hours. Contrast that with the United States, which has had a 40-hour workweek since the Fair Labor Standards Act (FLSA) was adjusted in 1940. But recently, Sen. Bernie Sanders (I-Vt.), Chairman of the Senate Committee on Health, Education, Labor, and Pensions (HELP), unveiled a new plan that would make standard a 4-day workweek—without any reduction in pay. Here’s what to know about the proposal. The HELP committee calls this “an important step toward ensuring that workers share in the massive increase in productivity driven by artificial intelligence, automation, and new technology

Over a 4-year period, the Thirty-Two Hour Workweek Act would lover the required threshold for overtime pay to 32 hours (down from 40 hours, where it stands today). It would also require adjustments to overtime pay: 1.5 times a worker’s regular salary for days worked more than 8 hours, and double a worker’s salary for days worked more than 12 hours. It would also protect the pay and benefits of those impacted.

In his press release, Sanders notes “Moving to a 32-hour workweek with no loss of pay is not a radical idea… Today, American workers are over 400 percent more productive than they were in the 1940s. And yet, millions of Americans are working longer hours for lower wages than they were decades ago. That has got to change….

…The financial gains from the major advancements in artificial intelligence, automation, and new technology must benefit the working class, not just corporate CEOs and wealthy stockholders on Wall Street. It is time to reduce the stress level in our country and allow Americans to enjoy a better quality of life.”

This legislation was introduced by Sanders and Senator Laphonza Butler (D-Calif.). Representative Mark Takano (D-Calif.) also pitched companion legislation in the House. And it comes with high praise, despite its unlikelihood of passage in a cripplingly divided Congress. High-profile businessmen like Microsoft founder Bill Gates and JP Morgan Chase CEO Jamie Dimon already predicted in 2023 that our widespread technology advancements would eventually bring us to a 3.5-day workweek in the next few years. However, “Americans now work more hours than the people of most other wealthy nations, but are earning less per week than they did 50 years ago, after adjusting for inflation” according to the HELP’s press release.

There is an uphill battle ahead in order to get this bill over to President Biden’s desk. It needs majority support in the Republican-controlled House, plus a 60-vote approval in the Senate.

For the bill to reach President Joe Biden’s desk, it would need to garner majority support in the Republican-controlled House as well as a filibuster-proof 60 vote approval in the Senate. If the measure were to reach Biden, it remains unclear whether he would sign it. Critics of the legislation fear that a mandatory 4-day week would mean companies have to hire additional employees and risk losing productivity. However, studies conducted in the U.K.found that when working hours were reduced without pay cuts, employees were less stressed and burnt out, and more focused and satisfied with their jobs. Revenues also grew, contrary to what opponents in the U.S. have claimed.

We’ll continue to keep an eye on this legislation over at the Financial Pantry, your best source for news in all things small business.

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