A new proposal in California would shorten the standard workweek to 32 hours for companies with more than 500 employees.
AB-2932 would leave the official workday at eight hours but require overtime for workers putting in more than 32 hours or four full days in a week.
The bill would also require paying double the regular wage for working more than 12 hours in a day or for seven days per week. The impact would increase hourly wages by approximately 25%, with overtime pay potentially adding additional costs in wages.
About 2,600 companies statewide would fall within the category being considered.
California Democratic Assemblywoman Cristina Garcia, a co-sponsor of the bill, said employees don’t want to go back to normal following the pandemic.
“We’ve seen over 47 million people voluntarily leave their jobs for better opportunities. We’re seeing a labor shortage across the board from small to big businesses,” Garcia told Fortune. “And so it’s very clear that employees don’t want to go back to normal or the old way, but to rethink and go back to [something] better.”
The California Chamber of Commerce opposes the new bill, arguing it would be a job killer across the state.
“Significantly increases labor costs by imposing an overtime pay requirement after 32 hours and other requirements that are impossible to comply with, exposing employers to litigation under the Private Attorneys General Act (PAGA),” the chamber said in a press release regarding AB-2932.
Chamber President and CEO Jennifer Barrera also criticized the bill as one of those harmful to the state’s economy, arguing it will “hurt job creation” across California.
“California companies are the economic engine that drives innovation and job creation in our state and are responsible for the record revenues the state is currently experiencing,” Barrera said in the press release.
“Yet, the bills on this year’s job killer list reflect a lack of appreciation of the economic realities and regulatory challenges employers—and especially small business employers—face as they continue to emerge from the impacts of this pandemic. A shrinking workforce coupled with California’s oppressive legal climate, penchant for overregulation, and continued push for even higher taxes, will hamper the ability of California companies to remain competitive in the future. This year’s job killer list highlights policies that will hurt job creation and will shut down or reduce investment in our economy,” she added.
As pandemic restrictions have eased, many companies expect their workers back in the office. The expectation may be more difficult than anticipated. The Daily Wire previously reported:
But according to a survey by tech job market platform Hackajob, 86% of workers want to keep doing their jobs from home, City A.M. reports. “Only 14 percent of the 1,700 tech professionals surveyed want to go back to a company office full-time, while around one in four would like to work remote permanently.”
But the workers are OK with a compromise: 60% are happy to drop into the office once in a while and spend the rest of time working from home.
“Hybrid working is the new deal breaker for tech professionals,” said Mark Chaffey, co-founder and CEO of Hackajob. “Although working from home may not have been the easiest for individuals this past year, tech professionals clearly find the value in not being in the office every day. Employees are feeling more comfortable and happier working from home, having cultivated a work-life balance,” Chaffey told City A.M.