A bill working its way through the Maryland Legislature would incentivize companies to switch to a four-day workweek, allowing employees to work 32 hours instead of 40 without seeing any pay cut or loss of benefits.
The bill would entice public and private employers to switch over to a four-day week by offering a state tax credit when they participate in a pilot program.
The proposed legislation comes after a recent study by nonprofit 4 Day Week Global and Boston College, which took 33 companies through a six-month pilot program of a four-day week. The trial instructed “employees to work 80% of their regularly scheduled hours in return for 100% of their pay and a pledge to deliver 100% of their standard output.”
After the study concluded, none of the participating companies said they planned to switch back.
Less surprising, employees overwhelmingly approved of the change. About 97% said they wanted to continue working a four-day week.
Maryland’s legislators aren’t the only ones weighing the merits of a reduced workweek. Rep. Mark Takano (D-Calif.) introduced the “Thirty-Two Hour Workweek Act” in Congress last month. The bill takes a different approach to incentivize shorter workweeks by requiring employers to pay overtime anytime someone works more than 32 hours per week.
Carolyn McArdle talked about it on the air. Listen below...