How The 4 Day Work Week Bill Could Impact Your Small Business
Are you ready for a potential shake-up in the traditional work week? Senator Bernie Sanders recently introduced a 4-day work week bill: The 32-Hour Workweek Act. The passing of this bill could completely transform how we approach work in the U.S. by reducing the standard 40-hour work week to 32 hours without cutting pay.
While this sounds great for employees, what does this mean for small businesses like yours? In this article, we'll explain the details of Senator Sanders' bill and explore how, if passed, it could impact your business.
What would this 4-day work week bill change and why does it matter?
The goal of Senator Sanders’ bill is to revise the Fair Labor Standards Act (FLSA) of 1938 – which set the current work week standards for W2 employees.
The FLSA is arguably one of America's most impactful laws for W2 workers. It normalized the work week of 5 days and 40 hours and enforced minimum wage, overtime pay, and child labor regulations.
Additionally, the 4-day work week bill would make it easier for employees to qualify for overtime pay and, in certain situations, increase it from one and a half times their regular rate to double.
The 4-day work week isn’t a new concept
While the 8-hour, 5-day work week is a standard for the Western workforce, the idea of a shorter work week is far from new. In the 1950s, Richard Nixon stated a 4-day work week was in the “not too distant future,” and since then, some U.S. companies have already implemented the structure.
Other countries have also adopted shorter work weeks. In 2001, France legally switched to a 35-hour work week. Denmark, Norway, and the United Arab Emirates also clock in 36-37 hour weeks on average.
So, why change things now?
Because work-life balance is becoming more important to Americans, especially after the COVID-19 pandemic. An increase in remote work opportunities and the flexibility they offer made many people reevaluate their expectations from employers.
Senator Sanders believes with advances in automation and AI, American employers can safely cut back hours without sacrificing pay or benefits.
At Day to Day Assist, we’ve been screaming shorter workdays and work weeks from the rooftops. In our 2024 Business Operations Insights Article, we mentioned the importance of small businesses becoming more productive by using automation and effective time management strategies to reduce work hours. Our operations management clients also experience the benefits of working fewer hours. By hiring us to increase back-end efficiency, support their business growth, and manage their team, they save so much time every week without compromising revenue.
What could this mean for your small business?
While some may view this work week change as counterproductive to business goals, evidence suggests otherwise.
Shorter work weeks boost productivity
Trials conducted by 61 companies in the UK showed that a 4-day work week did not hinder productivity; in fact, some companies experienced a 34% increase in revenue over the trial period.
When there’s less time to get things done, people tend to focus on completing the work that actually matters first instead of wasting time on unimportant tasks.
Shorter work weeks improve team well-being
The trials conducted in the UK also improved employee morale and well-being, leading to higher engagement. Reduced healthcare costs. And lower absentee rates, all of which contribute to increased productivity and profitability.
Shorter work weeks Enhance Creativity and Innovation
With shorter work weeks, employees will have more time for rest and personal pursuits, which can stimulate their creativity and innovation. Studies have shown that well-rested minds are more likely to generate new ideas and problem-solving strategies, which can be invaluable for your small business if you want to stay competitive.
Shorter work weeks Improve Recruitment and Retention
Offering a 4-day work week can make your business more appealing to potential hires. By prioritizing work-life balance in today's job market, you’re more likely to attract and retain skilled workers — according to a 2022 LinkedIn trend report. This can result in lower turnover rates and reduced recruitment costs for your business.
Shorter work weeks can save money
Switching to a 4-day work week can lead to long-term cost savings for your small business. By becoming more productive and reducing overhead expenses associated with operating five days a week, your business may see improved financial performance in the long run.
Potential drawbacks of switching to a 4-day work week
Despite the potential benefits, there are plenty of critics of the 4-day work week bill. If it were to pass, it would likely take time to enforce it nationwide.
SHORTER WORK WEEKS MAY NOT WORK FOR EVERY INDUSTRY
While some industries may seamlessly transition to a shorter work week model, others may not be able to. For retail and healthcare industries, adapting to a 4-day work week could be challenging. Maintaining quality customer service and meeting demands would require major operational adjustments.
SHORTER WORK WEEKS MAY disrupt operations
Implementing a 4-day work week will require you to reevaluate workflow structures, redistribute tasks, and potentially hire additional staff to ensure productivity and efficiency are maintained. If you don’t address these operational considerations, it could result in decreased output, missed deadlines, and customer dissatisfaction.
Shorter work weeks could increase employee workload
The transition to fewer workdays may lead to longer hours and increased work intensity during the remaining days, potentially canceling the intended benefits of improved work-life balance. Also, employees accustomed to traditional schedules may resist change.
If the 4-day work week bill is passed, your small business will have to navigate structural changes, so good planning and implementation strategies are essential to avoid major issues.
Let this bill inspire you to make positive company changes
Whether the bill is passed or not, it gives you an opportunity to set some new priorities like improving employee satisfaction and creating a work culture that promotes both productivity and work-life balance.
A 4-day work week aside, you should continue to find ways to enhance efficiency and effectiveness. We recommend having conversations about how to explore and put the following ideas into place:
Having the right conversations with your team now can help you experience the same benefits as the organizations that have embraced the 4-day work week model.
So, whether or not the 4-day work week bill becomes law, it can serve as a spark for positive changes within your business. By focusing on employee well-being and creating efficient workflows, your business can thrive in a quick-changing work environment.