Iceland ran two large-scale trials of the concept between 20, in which about 1% of the nation’s workforce reduced their workweek to 35 or 36 hours with no reduction in pay. She said the bill does not apply to workers with collective bargaining agreements because “I like to think of this as a floor, and oftentimes our bargaining agreements are better.”īut, she added, “we have to start the discussion someplace.” Garcia said conversations are ongoing about how the rules would work for salaried employees. Under the bill, employees who work in excess of 32 hours would be compensated at a rate of at least 1.5 times their regular rate of pay, as is currently required for those who work in excess of 40 hours.Ĭrucially, the bill would also prohibit employers from reducing an employee’s regular rate of pay as a result of the reduced hourly workweek requirement.
The bill seeks to amend Section 510 of the California Labor Code by redefining the workweek from 40 hours to 32, with eight-hour workdays remaining in place. Unionized workforces, or those with collective bargaining agreements, are exempt, Garcia said. According to the state’s Employment Development Department, that’s about 2,600 businesses and more than 3.6 million employees. The bill as written would apply to employers in California with at least 500 employees. Here’s what you need to know about this potentially monumental change:
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