The Future Of Work: Four-Day Week As A Legal Standard?

The four-day work week is gaining traction in the US, with several large trials taking place in the US, UK and Canada. In 2023, US Representative Mark Takano reintroduced the 32-Hour Workweek Act to Congress, which would reduce the standard work week from 40 to 32 hours. The bill has been endorsed by several labour unions and organisations, but critics worry about a 'one-size-fits-all' approach. Meanwhile, some US states are trialling four-day weeks, and companies including Shopify, Kickstarter and Basecamp have already made the switch. So, will the four-day work week become law?

The Thirty-Two Hour Workweek Act

Benefits

The bill's proponents argue that a shorter workweek would bring numerous benefits for both workers and businesses. Firstly, workers would have more time to relax, spend time with family, and improve their work-life balance. This would lead to happier, less stressed, and less burned-out employees, as evidenced by studies and experiments conducted in the UK.

Business Benefits

Businesses would also benefit from a shorter workweek, according to advocates. Operating costs would be lowered, and worker productivity would increase, potentially leading to increased revenues. Several companies, including Shopify, Kickstarter, and Basecamp, have already successfully switched to a four-day workweek.

Criticisms

However, the bill is not without its critics. Some argue that a shorter workweek could be detrimental to small businesses and certain industries, such as restaurants and trades. There are also concerns about the potential impact on the economy if all businesses are closed one day a week, as well as reduced time for worker collaboration.

Previous Attempts

It is worth noting that this is not the first time legislation for a four-day workweek has been proposed. Representative Mark Takano (D-Calif.) introduced similar legislation in 2021 and 2023, without success. Additionally, several US states, such as Massachusetts, Maryland, and California, have proposed or trialed four-day workweek programs, with mixed results.

The Fair Labor Standards Act

The FLSA defines "employ" as "to suffer or permit to work." The workweek includes all time during which an employee is required to be on the employer's premises, on duty, or at a prescribed workplace. The workday generally means the period between when an employee begins and ends their principal activity or activities. The workday may be longer than the employee's scheduled shift, and waiting time may or may not be considered work time depending on whether the employee was "engaged to wait" or "waiting to be engaged." Rest periods of short duration, usually 20 minutes or less, are typically paid for as working time and must be counted as hours worked. Bona fide meal periods, typically 30 minutes or more, do not need to be compensated as work time if the employee is completely relieved from duty.

In July 2021 and 2023, Rep. Mark Takano (D-Calif.) introduced the Thirty-Two Hour Workweek Act in the House of Representatives, which aimed to amend the FLSA to reduce the standard workweek from 40 to 32 hours. The bill included provisions for overtime pay at time and a half for employees working more than eight hours in a day and double overtime pay for those working more than 12 hours. Similar legislation has been introduced by Sen. Bernie Sanders in the Senate, citing increases in productivity and technological advancements that should benefit workers. However, these bills are unlikely to gain much traction due to technical and practical challenges for employers.

While a federal mandate for a four-day workweek may not be imminent, some US states are trialling four-day weeks to promote employee well-being, and companies like Shopify, Kickstarter, and Basecamp have already made the switch.

Worker wellbeing

The four-day work week is an increasingly popular concept, with several large trials taking place in the US, UK, Canada, Ireland, Australia, New Zealand, and Japan. The results of these trials have been promising, with some companies already switching to the four-day week, including Shopify, Kickstarter, and Basecamp. Even Amazon and Microsoft have been experimenting with the shorter work week.

One of the main benefits of the four-day work week is improved worker wellbeing. Research has shown that a four-day work week can lead to reduced stress and burnout levels, improved physical and mental health, and a better work-life balance for employees. People who work four days a week get more sleep, have more time for sporting activities and hobbies, and can spend more time with their families.

In addition to the health benefits, the four-day work week can also lead to increased productivity and profitability for companies. Employees are more efficient and focused during the four days they are in the office, which can lead to higher revenues and reduced costs for companies.

However, it is important to note that careful planning is needed to ensure the success of the four-day work week. Some companies may need to reorganize work schedules, invest in new technologies, and ensure that customer needs are still being met. Additionally, not all industries may be suited to the four-day work week, and it may be more challenging for industries that operate 24/7 or have strict production schedules.

Despite these challenges, the four-day work week has gained significant support, with many employees and employers advocating for its implementation. It remains to be seen whether it will become law, but the trend towards more flexible and remote work in the post-pandemic era suggests that we may be moving towards a new standard for the work week.

Business productivity

The four-day work week has been gaining traction, with large-scale trials in the US, UK, Canada, Ireland, Australia, New Zealand, and Spain. The results have been promising, with companies reporting increased productivity, improved employee well-being, and reduced turnover rates.

In a Canadian trial, researchers found that revenue increased by 15%, and all 41 companies involved decided to continue with the four-day work week after the trial ended. Similarly, in a global study, companies reported that employees were happier, less burned out, and it was easier to attract new talent. Notable companies that have already switched to the four-day work week include Shopify, Kickstarter, and Basecamp, with even Amazon and Microsoft experimenting with the shorter work week.

In a UK trial, 54 out of 61 companies that participated in a six-month experiment decided to continue with the four-day work week after the trial, with just over half making it permanent. The companies reported improved physical and mental health, work-life balance, and general life satisfaction, as well as reduced burnout for their employees.

The four-day work week trials have received near-unanimous approval from workers, with 97% saying that the four-day work week should become permanent in their organizations. Employers, too, have been very positive about the results, with 92% of those who took part in the UK trial retaining the four-day work week. Globally, companies that took part in the trials reported an average revenue increase of approximately 8% and a 37.55% higher revenue compared to the same period in 2021.

However, it is important to note that a four-day work week may not work for all businesses. For example, a housing cooperative in South Wales decided to keep their operations running from Monday to Friday, as dropping repair services for their tenants one day a week would mean a reduction in the level of service provided. Instead, they offered their employees a variety of schedules, such as set days off, rolling schedules, or reduced hours, to accommodate individual and team needs.

Additionally, while the four-day work week has been successful for many companies, it requires substantial work redesign to reduce hours while maintaining business outcomes. Companies need to streamline operations, remove administrative burdens, and prioritize high-impact work. Another challenge is ensuring employees understand that they are expected to produce the same amount of work in fewer hours.

Work-life balance

The COVID-19 pandemic has brought about a shift in the way we work, with remote working becoming more common and employees rethinking their work-life balance. The pandemic has also led to a labour shortage, with businesses having to offer incentives such as higher wages and better working conditions to attract staff.

A four-day work week is one such incentive that has gained traction in recent years, with large-scale trials in the US, UK and Canada. The concept is not new, but there has been more conversation and research into the benefits of a shorter work week.

A four-day work week can improve work-life balance, giving employees more time to relax, spend time with family, and handle personal obligations. It can also reduce childcare expenses for working spouses with children and help to reduce traffic congestion and pollution. Some studies have also found that employees working fewer days and hours experience less stress and improved mental health.

The success of a four-day work week has been demonstrated in several trials. For example, in a Canadian trial, researchers found that revenue increased by 15%, and all 41 companies involved decided to continue with the approach after the trial ended. In another trial by 4 Day Week Global, 4-Day Week Campaign, and progressive research organization Autonomy, 54 out of 61 companies elected to continue with the four-day work week after a six-month trial, citing improved physical and mental health, work-life balance, and general life satisfaction as benefits.

However, a four-day work week may not work for all types of businesses, particularly customer-facing retail and hospitality jobs, as it may be difficult to respond to customers' needs when staff are off. Additionally, some employees may experience increased stress and pressure to complete their work in a shorter timeframe.

Overall, a four-day work week has the potential to improve work-life balance for employees, but it is important to consider the specific needs and challenges of different industries and employees when implementing such a change.

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