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Workers carry lunch to go on 2nd Street in San Francisco, California, U.S., on Tuesday, Oct. 5, 2021. About 21% of San Francisco areas office workers had returned as of Sept. 22, according to Kastle Systemsa figure that is little changed since the summer and the lowest among 10 U.S. metro areas. Photographer: David Paul Morris/Bloomberg via Getty Images
Workers carry out lunch on 2nd Street in San Francisco last fall. A proposed bill in the state Legislature would change the definition of a workweek from 40 hours to 32 hours for companies with more than 500 employees. (David Paul Morris / Bloomberg / Getty Images)

California could be the first state in the nation to reduce its workweek to four days if a bill passes the Legislature.

The bill would change the definition of a workweek from 40 to 32 hours for companies with more than 500 employees. Employers would be required to give overtime pay to employees who work more than four days in a row.

The bill was authored by two Assembly Members. The Fair Labor Standards Act is the subject of a bill by Rep. Mark Takano.

The idea was sparked by the exodus of employees during the COVID-19 epidemic, which many of them were looking for a better quality of life. According to the U.S. Bureau of Labor Statistics, more than 47 million Americans quit their jobs in the year 2021.

We have had a five-day workweek since the Industrial Revolution, but we have had a lot of progress in society. I think the Pandemic gives us the chance to rethink things.

Proponents say a four-day workweek would lead to an increase in productivity and profits, and point to case studies at companies such as Kickstarter. The concept was argued to be worth a try by the Times editorial board.

Opponents say a four-day workweek would stunt job growth in the state. The California Chamber of Commerce wrote that the bill would increase labor costs, expose employers to litigation and impose requirements that are impossible to comply with.

You need to know what to know about this potentially monumental change.

Who would be covered by the law?

Employers in California with at least 500 employees would be affected by the bill. According to the Employment Development Department, there are more than 3.6 million employees.

Those with collective bargaining agreements are exempt.

How would it work?

Section 510 of the California Labor Code states that the workweek can be changed from 40 hours to 32 hours.

Employees who work more than 32 hours would be compensated at a rate of 1.5 times their regular rate of pay, as is currently required for those who work more than 40 hours.

The bill would prohibit employers from reducing an employee's regular rate of pay as a result of the reduced hourly workweek requirement.

There are discussions about how the rules would work for employees. She said that the bill does not apply to workers with collective bargaining agreements because they are better.

She said that we have to start the discussion somewhere.

What are the benefits?

About 1% of the nation's workforce reduced their workweek to 35 or 36 hours with no reduction in pay in two large-scale trials.

Worker well-being increased dramatically across a range of indicators, including perceived stress and burnout and health and work-life balance, as the nation found that productivity and service remained the same across the majority of trial workplaces.

At least 86% of the country's workforce are now working shorter hours or have the right to shorten their hours, as a result of the trials.

The bill's co-author, Low, said that many other companies are already doing this, and that many companies have tried.

He said that this will attract more employees to your company because undisputed workers are looking for more flexibility.

What are the possible disadvantages?

The California Chamber of Commerce's policy advocate said that the bill would result in a minimum 10% increase in wages per employee per week, among other concerns.

She wrote in opposition to the bill that labor costs are often one of the highest costs a business faces, and that many companies operate on very thin profit margins.

Businesses will not be able to hire or create new positions if labor costs go up so much.

The bill could have an effect on hours for workers.

What will happen next?

The Labor and Employment Committee is currently reviewingAB 2932.

We have an opportunity for business and labor to have an honest and frank conversation about what this looks like, and then we will make changes accordingly, Low said.

He said that a hearing date has not been set.

The story was originally published in the Los Angeles Times.

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