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A new 32-hour workweek bill could change when millions of American workers qualify for overtime pay. The proposal would gradually lower the federal overtime threshold from 40 hours to 32 hours per week.
Rep. Mark Takano, a California Democrat, introduced the Thirty-Two Hour Workweek Act on Sept. 8. Sen. Bernie Sanders, an independent from Vermont, is leading the effort in the Senate.
However, the proposal has only been introduced. It has not passed either chamber of Congress or become law.
How the 32-Hour Workweek Bill Would Operate
The legislation would amend the Fair Labor Standards Act, the federal law governing wages and overtime protections.
Under current law, most covered, nonexempt employees qualify for time-and-a-half pay after working more than 40 hours during one week. The bill would eventually move that threshold to 32 hours.
The transition would happen gradually. According to the official bill text, the overtime threshold would fall to 38 hours during the first year. It would then drop to 36 hours in the second year and 34 hours in the third.
After the third year, covered employees would receive overtime pay after working more than 32 hours per week.
The changes would begin at least 180 days after the bill became law. Employers would still have the option to schedule employees for more than 32 hours. However, covered hours beyond that threshold would generally require additional pay.
Proposal Does Not Guarantee a Four-Day Schedule
The bill would not automatically establish a four-day workweek for every employee. It would change federal overtime rules rather than require companies to close on a specific day.
Employers could organize 32 hours across four or more days. They could also maintain 40-hour schedules if they paid eligible workers overtime for the additional hours.
The proposal includes daily overtime requirements. Covered employees would receive time-and-a-half pay for working more than eight hours in one day. Hours beyond 12 would require double pay.
Some workers would not qualify because the Fair Labor Standards Act contains exemptions. Certain executives, administrators and professionals are among the employees who may be exempt from federal overtime rules.
The Department of Labor currently requires covered, nonexempt workers to receive at least time-and-a-half pay after 40 weekly hours.
Pay and Benefits Included in Proposal
Supporters say reducing hours should not result in lower weekly compensation or lost benefits. The bill states that employers could not reduce newly covered employees’ total weekly compensation rate or benefits because of the change.
Takano and Sanders argue that workers should benefit from productivity gains connected to automation and artificial intelligence. Labor organizations supporting the proposal include the AFL-CIO, United Auto Workers, SEIU and National Nurses United.
“Federal labor protections have not seen meaningful change for over 85 years,” Takano’s office said while announcing the legislation.
Businesses Raise Cost Concerns
Critics have warned that a shorter standard workweek could increase operating costs. Employers might need to pay more overtime or hire additional workers to maintain current schedules.
Business representatives raised similar concerns when Sanders introduced an earlier version in 2024. They argued that manufacturing, health care, restaurants and other labor-intensive industries could face significant challenges.
Supporters point to shorter-workweek trials that maintained productivity while improving employee well-being. However, results can vary by company and industry.
The House bill, H.R. 10323, is currently before the House Committee on Education and Workforce. It must advance through Congress and receive presidential approval before affecting workers in Texas or elsewhere.
For now, employees and employers should follow existing federal overtime rules. The proposal’s progress will determine whether the 40-hour standard faces its most significant change in decades.