A new bill in Congress would lower the federal overtime threshold from 40 hours to 32 hours for covered workers, eventually requiring time-and-a-half pay once they exceed the shorter workweek.

Rep. Mark Takano, D-Calif., introduced the Thirty-Two Hour Workweek Act in the House on Sept. 8. Sen. Bernie Sanders, I-Vt., introduced a Senate companion on Sept. 14, putting versions of the proposal before both chambers.

The legislation would amend the Fair Labor Standards Act, which generally requires covered, nonexempt employees to receive overtime after working more than 40 hours in a week.

The shift to 32 hours would happen gradually. The overtime threshold would fall to 38 hours during the first year of the phase-in, 36 hours during the second, and 34 hours during the third before reaching 32 hours.

Covered employees could continue working beyond the new threshold, but employers would generally have to pay time-and-a-half for the additional hours.

The bill would also create a federal daily overtime requirement. Covered workers would receive time-and-a-half after eight hours in a workday and double their regular rate for work beyond 12 hours.

That would mark a significant change from the current federal system, which generally bases overtime eligibility on hours worked during a week rather than the length of an individual workday.

Despite its name, the proposal would not require every employee to work four days a week. Employers could use different schedules as long as covered...

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