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Federal bill would lower overtime threshold to 32 hours

Federal bill would lower overtime threshold to 32 hours

A proposal in Congress would lower the general federal overtime threshold from 40 hours a week to 32, a change that could affect covered workers and employers in New York if it becomes law. The bill would not require every business to switch to a four-day schedule.

Sen. Bernie Sanders introduced the Thirty-Two Hour Workweek Act on Sept. 14. It would revise the Fair Labor Standards Act, which now generally requires time-and-a-half pay after 40 hours for covered, nonexempt employees.


How the overtime threshold would change

The introduced text would set a 32-hour weekly overtime threshold in the general section of the Fair Labor Standards Act. A transition provision for workers brought under the overtime rules by the new act lists interim thresholds of 38, 36 and 34 hours before reaching 32. Its first stage would begin at least 180 days after enactment.

Sanders' fact sheet describes the change as a four-year phase-in for nonexempt workers. The bill gives the interim thresholds but no fixed calendar dates, because the proposal has not been enacted.

For hours beyond the applicable weekly threshold, covered workers would receive at least one and one-half times their regular pay rate. The proposal also calls for time-and-a-half after eight hours in a workday and double pay after 12 hours in a workday. Existing federal law generally bases overtime on the workweek, not an eight-hour day, according to the U.S. Department of Labor.

The bill also says employers could not reduce the total workweek compensation rate or benefits of workers brought under its overtime rules by the new act because of the change. Sanders and Rep. Mark Takano of California describe the proposal as a shorter week with no loss of pay or benefits.

Employers could still schedule covered employees for more than 32 hours, but work beyond the applicable threshold would carry the overtime premium. Federal overtime exemptions and special rules for some occupations would still matter.

Supporters cite productivity; employers could face staffing choices

Sanders and Takano announced the proposal in September, arguing that gains from technology and productivity should give workers more time away from the job without a loss of pay or benefits. Their office listed labor groups representing flight attendants, nurses, service workers, autoworkers and other employees among the bill's supporters.

In interviews reported by WSYR-TV, Kent Ford, an economics professor at Onondaga Community College, said desk-based businesses might stagger employees' schedules to maintain coverage. He said hospitals and other workplaces that need continuous staffing could face higher costs or need to hire more workers.

Anirban Acharya, a political science professor at Le Moyne College, told the Syracuse station that shorter workweeks could help with burnout and turnover. Ford pointed to productivity as a central question. Cortland resident Rachel Oltz told WSYR-TV she favored the idea for the time it could give workers outside their jobs.

The measure was referred to the Senate Health, Education, Labor and Pensions Committee, where it awaits further action.



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