A newly suggested regulation in California would shorten the workweek to 4 days for almost one-fifth of all employees in the state. According to Assembly Bill 2932, the standard workweek would go down from 40 hours a week to just 32 hours. Furthermore, companies would not be able to reduce employee wages.
The bill would especially impact companies with more than 500 employees. The action would require companies to pay overtime to those working even more than 4 days a week.
According to California’s Employment Development Department, if the bill passes, nearly 2600 employers will be influenced. Information from the firm recognizes the employers influenced by the bill’s standards for the adjustments.
Challengers, consisting of the California Chamber of Commerce, suggest it would certainly boost labor costs and also kill job development when organizations are recuperating from the pandemic and face higher rates for materials.
Assemblywoman Cristina Garcia presented the bill in the Assembly.
“Employees are not asking for games or free food or free coffee, those were some of the perks we saw before, especially in Silicon Valley,” Garcia told the Sacramento Bee. “Employees are talking about wanting a work-life balance, wanting to be healthy mentally, physically, and emotionally. And a four-day workweek is part of that discussion.”
“I think the labor shortage is not about people not wanting to work, but they want a better balance,” she added.
Todd Scherwin, managing partner for the labor and work company Fisher Phillips, stated, “I really am not sure that, for the majority of workforces, this is going to mean people are going to be working four days a week. I think for the majority of these workforces where you need people to work five days a week, this is going to increase wages, to increase costs.”
A four-day workweek has been taken into consideration before. Richard Nixon claimed he assumed a four-day workweek was in the “not too distant future.” In 1977, former President Jimmy Carter recommended a shorter workweek could save energy for firms in the middle of an oil dilemma. The high joblessness and financial rising cost of living of the 70s and ’80s ended their ideas of a much shorter workweek.