In recent years, countries such as Iceland and Belgium and some domestic companies have experimented with the concept of four-day workweeks.  Now, a new bill proposed by California Assemblymembers Cristina Garcia (D-Bell Gardens) and Evan Low (D-San Jose), Assembly Bill 2932 (“AB 2932”), proposes to make a four-day workweek the new normal in California for non-exempt employees.

Under existing law, both California’s Labor Code and its Industrial Welfare Commission Wage Orders set the threshold for weekly overtime at 40 hours per week.  In its current form, AB 2932 would redefine the standard workweek for non-exempt employees who work for employers with more than 500 employees to 32 hours.  Any work beyond 32 hours would trigger overtime.

In an attempt to mitigate the potential wage loss to employees from a reduced workweek, AB 2932 confusingly provides that “[t]he compensation rate of pay at 32 hours shall reflect the previous compensation rate of pay at 40 hours.”  It is unclear whether this would mean that employers covered by AB 2932 would be prohibited from reducing salaried non-exempt employees’ salaries based on their shorter workweeks, or whether it would require that employers actually increase the hourly rate of pay for hourly-paid non-exempt employees so that, on balance, they end up earning the same amount of pay for 32 hours as they did for 40.   Interestingly, AB 2932 does nothing to relieve overworked exempt employees.

If signed into law, AB 2932’s redefined standard non-exempt workweek could have ripple effects beyond just the increase in free time it may provide to some California workers.  Compensating hourly employees for overtime at the lower threshold could be exceedingly expensive, especially given California’s high state and local minimum wage rates.  Further, the limited workweek could negatively impact client service, heighten employees’ stress to complete the same amount of work in fewer weekly working hours, and negatively impact employees’ sick leave and other paid time off accrual.

It is still unclear whether AB 2932 has any chance of being passed.  However, if enacted, the law would mark the first change to the definition of the standard 40-hour workweek in the United States since 1926.  The Legislature has until August 31st to pass measures, and Governor Newsom has until September 30th to sign or veto bills.  We will continue to monitor and report on developments.

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Photo of Philippe A. Lebel Philippe A. Lebel

Philippe (Phil) A. Lebel represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, defamation, trade secrets, and breach of contract litigation, in both the single-plaintiff and class- and/or representative-action context, at both the trial and…

Philippe (Phil) A. Lebel represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, defamation, trade secrets, and breach of contract litigation, in both the single-plaintiff and class- and/or representative-action context, at both the trial and appellate levels, as well as before administrative agencies.

In addition to his litigation work, Phil regularly advises clients regarding compliance with federal, state and local employment laws, and assists a variety of companies and financial firms in evaluating labor and employment issues in connection with corporate transactions. Phil also has experience assisting employers with sensitive employee investigations, cutting edge-trainings, pay equity analyses and comprehensive audits of employment practices.

Phil has assisted clients in a wide array of sectors including in the biotech, education, entertainment, fashion, financial services, fitness, healthcare, high-tech, legal services, manufacturing, media, professional services, retail, sports, and staffing industries, among others.

Phil regularly speaks on emerging issues for employers and has been published or quoted in Law360, the Daily JournalThe Hollywood ReporterBusiness Insurance, and SHRM.org regarding a variety of labor and employment law topics.

Before law school, Phil was an intern with the National Gay and Lesbian Task Force and the Gay and Lesbian Victory Fund, during which he assisted on political campaigns in Alabama and Georgia. Phil is a former member of the Board of Directors of the AIDS Legal Referral Panel.

Photo of Sehreen Ladak Sehreen Ladak

Sehreen Ladak is an associate in the Labor & Employment Department. She represents clients in a wide range of employment matters, including state and federal litigation, arbitration, and class actions on wage and hour, discrimination, harassment, and retaliation claims. Sehreen has experience managing…

Sehreen Ladak is an associate in the Labor & Employment Department. She represents clients in a wide range of employment matters, including state and federal litigation, arbitration, and class actions on wage and hour, discrimination, harassment, and retaliation claims. Sehreen has experience managing every aspect of litigation, including taking and defending depositions, arguing discovery and dispositive motions, and leading trials and labor arbitrations.

Sehreen also advises clients on various employment issues, including wage and hour compliance, onboarding procedures, employment and separation agreements, handbooks, and workplace accommodations.

In addition, Sehreen has experience in evaluating labor and employment issues in connection with corporate transactions and partners with her colleagues in corporate and executive benefits departments to provide the highest level of service. She also regularly leads employee trainings on workplace conduct and has been published in trade journals on a variety of employment law topics.

Sehreen’s clients come from a broad spectrum of industries, such as transportation, entertainment, healthcare, financial services, and retail. She leverages her experience to provide highly efficient, yet thoughtfully bespoke solutions to address her clients’ unique needs.

During law school at USC, Sehreen was the Southern California Review of Law and Social Justice’sExecutive Submissions Editor and served as a judicial extern for an administrative judge at the E.E.O.C.

Sehreen was selected to be a Protégée for Proskauer’s Women Sponsorship Program, an initiative for high performing midlevel lawyers that champions emerging leaders. She also serves as a member of the Firm’s Associate Council and Asian Lawyer Affinity Group.