Will Californians across the state soon be saying “Thank God it’s Thursday” as they look forward to a mandated three-day weekend all year round? Efforts to reduce work time have regained steam with the California Legislature’s introduction of a bill to reduce the standard workweek to 32 hours – without sacrificing employee pay. On March 24, state lawmakers amended proposed bill AB 2932 with language that would require employers with more than 500 employees to limit the workweek to four days and 32 hours. What do you need to know about this seismic legislative proposal?

Details on AB 2932

The proposed bill seeks to amend California’s overtime pay law, codified as Labor Code section 510, by redefining a “workweek” for employers with more than 500 employees in California. The proposed bill would require these employers to compensate employees who work in excess of 32 hours per week at 1 times the employee’s regular rate of pay.

For employers with no more than 500 employees, the proposed bill’s language remains the same, as it continues to define a “workweek” as a 40-hour week. For employees at these “smaller” businesses, any work in excess of 40 hours would still be considered overtime wages, to be compensated at a rate of at least 1 times the employee’s regular rate of pay.

The proposed bill also continues to define a standard workday as eight hours of labor.

How Many Businesses May Be Affected If AB 2932 Passes?

According to California’s Employment Development Department,...

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