BUSINESS

Proposed California bill would change workweek to 32 hours for companies with over 500 employees

Friday, April 8, 2022

Proposal to change CA workweek to 32 hours for larger companiesA proposed bill in California would change the definition of a workweek from the 40 hours to 32 hours for companies with more than 500 employees.

SACRAMENTO, Calif. (KGO) -- A new bill in California could have people saying "Thank God it's Thursday."

The bill, AB 2932, is moving through the state legislature and would change the definition of a workweek from the 40 hours to 32 hours for companies with more than 500 employees. A full work day would remain at 8 hours.

The bill would require overtime pay for employees work longer than four full days a week. According to Congressman Mark Takano (D-Riverside) this would amount to a 10% increase in pay for employees.

Some employers who have already tested out a four day workweek say it has led to an increase in productivity and profits. Other employers say it has led to more stressed out employees who feel like they are letting their teammates down by not supporting them more.

Iceland tested a 35-36 shorter work week and studies showed it was an "overwhelming success." Microsoft trialed a four-day workweek in Japan in 2019, and said productivity, measured by sales per employee, went up by almost 40% compared to the same period the previous year.

According to studies, the U.S. ranks among the top countries in hours worked per year. Americans also spend less time than people from other developed countries on personal care and leisure.