US could cut the 40-hour workweek to 32 hours: Here's what the new bill proposes

The traditional 40-hour workweek in the US could eventually get shorter. A new bill in Congress is proposing to make 32 hours the standard threshold for overtime, with its supporters arguing that workers should benefit from productivity gains created by artificial intelligence and automation, according to a report by The Newsweek.

The Thirty-Two Hour Workweek Act, introduced by independent Senator Bernie Sanders of Vermont and Democratic Representative Mark Takano of California, would gradually lower the point at which many employees become eligible for overtime pay.

Under current federal law, most covered workers must receive one-and-a-half times their regular pay for hours worked beyond 40 hours a week.

The proposed legislation would lower that threshold to 38 hours in the first year, 36 in the second and 34 in the third, before reaching 32 hours.

Once fully phased in, an eligible employee working 40 hours a week would generally receive overtime pay for eight hours.

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The bill would also introduce daily overtime rules. Covered employees would generally receive time-and-a-half after eight hours in a day and double their normal rate after 12 hours. Employers would still be allowed to ask workers to put in longer hours, but doing so would become more expensive.

The legislation would also prevent employers from reducing an affected worker's weekly compensation or benefits simply because the standard workweek has been shortened.

No automatic four-day week

The proposal does not mean every American worker would suddenly move to a Monday-to-Thursday schedule.

It does not prescribe which days employees must work, meaning businesses could arrange 32 hours in different ways.

It would also not cover every worker. The bill would amend the Fair Labor Standards Act, which already exempts certain categories of employees from federal overtime protections, including some executive, administrative and professional workers.

Supporters say advances in technology have allowed businesses to produce more with less human labour, and workers should share those gains through shorter working hours.

Shorter workweek experiments

The proposal follows years of discussion in Congress. Takano introduced similar legislation in 2021 and 2023, while Sanders introduced a Senate version in 2024.

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Shorter-workweek experiments have also taken place elsewhere. In the UK, 61 organisations involving about 2,900 workers tested a 20 percent reduction in working time without reducing salaries in 2022. Researchers at the University of Cambridge reported that sick days fell by 65 percent and staff departures dropped by 57 percent compared with the same period a year earlier.

However, opponents have warned that reducing working hours while maintaining pay could raise costs for businesses. During a 2024 Senate hearing, Republican Senator Bill Cassidy said employers could respond by raising prices, reducing hiring or moving jobs elsewhere.