The 40-hour workweek has long been the full-time standard in the United States. But will it remain the norm in the future?
So, how did the 40-hour workweek become the standard?
It did not arise because every job has 40 hours of tasks to complete. For most of human history, people worked as long each day as it took to survive. But during the Industrial Revolution, the normal workweek grew to 60 or 70 hours over six days. By the end of the 19th century, most employees worked closer to 60 hours per week. But two events early in the 20th century brought the typical workweek to 40 hours, where it has remained for the last century.
First, Henry Ford instituted a five-day, eight-hour-per-day workweek in his automotive factories. He explained that workers deserved relaxation as much as the “leisure class” did. While Ford may have believed his assertion, historians point out that three eight-hour shifts per day allowed him to keep the assembly lines rolling 24 hours per day. And by allowing more free time for workers, Ford could demand even greater productivity during the shorter work hours. But everyone agreed that happy, rested employees are more productive and safer employees.
Second, the Great Depression resulted in massive unemployment. Congress responded with the Fair Labor Standards Act (FLSA) in 1938. The FLSA requires employers to pay overtime for hours worked over 40 in a workweek unless the employee falls under one of several exemptions to this requirement. Congress imposed the requirement to incentivize employers to cull the unemployment rolls by hiring more workers instead of simply working current employees long hours.
If we are not bound to a 40-hour workweek, what are our options? Reductions in hours are usually accompanied by or accomplished by reducing the number of days in the workweek, but not necessarily so. Many people have worked 10-hour days four days per week. But the most common approach is to combine any number of days and hours that meet the employer’s needs. Four-day, nine-hour-per-day schedules are increasingly common.
At the far end of the spectrum are schedules that eliminate scheduling as long as employees complete their work. This approach requires more attentive supervision, and of course, it won’t work for manufacturing jobs or other industries that require everyone to work at set times.
Advantages of Shorter Workweeks
Studies regularly show that employees who work shorter hours are happier, healthier, and more productive. 4 Day Week Global, a not-for-profit organization that runs pilot programs, works with governments to form policies, and it facilitates research demonstrating the impact of reduced work time on the North American market. In a July 2023 report, 4 Day Week Global released the results of a pilot program in which 32 U.S. and nine Canadian employers agreed to reduce the hours and days their employees worked and report on the results.
Participating employers reduced hours from a baseline of 38 hours per week to 33 hours per week one year out from the start of the trial. The following are some of the reported findings:
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Sixty-nine percent of employees reported a reduction in burnout.
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Seventy-four percent of employees were more satisfied with their work-life balance.
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Ninety-five percent of employees wanted to continue their shorter workweeks.
And employers were pleased with the results of the trial too. All participating employers said they would definitely continue (89%) or were leaning toward continuing (11%) a shorter workweek. Revenue, weighted according to the size of the organization, increased 15%, and 32% of employees seriously considering leaving their jobs reported they were less likely to leave now.
Challenges of Making a Change
Some employers chafe at the thought of paying employees the same to work 36 hours per week as 40 hours. However, studies show that the average employee engages in cyberloafing (using the Internet for personal reasons) anywhere from 45 minutes to 2.5 hours a day. The increased motivation and productivity shown in shorter workweek trials may result in less wasted time and more time spent working.
But employers must decide whether to keep total pay levels the same or reduce pay to reflect the shorter hours. Reducing pay will certainly create morale issues and negate the gains in motivation and productivity the shorter workweek at the same pay created. And employers that want to lower pay may run into other issues. Exempt employees whose pay is reduced to reflect a shorter workweek may inadvertently fall short of the salary level necessary to classify the employee as exempt and avoid overtime obligations.
Employers that institute a shorter workweek are still required to pay overtime to non-exempt employees who work over 40 hours per week. Employers that pay straight time for the hours between the “regular” workweek and 40 hours should explain this to employees and manage employee expectations.
Employers should consider how a shorter workweek will affect the administration of leave benefits, such as the Family and Medical Leave Act (FMLA), vacation, sick leave, and leave as an accommodation under the Americans with Disabilities Act (ADA). For example, the default method for calculating FMLA leave entitlements is to track weeks and fractions of weeks. Thus, for block leave, the number of hours an employee works in a week is moot. A week is a week regardless of the number of hours worked per week.
But intermittent leave is different. In Fact Sheet 28I, the U.S. Department of Labor (DOL) provides the following example:
“An employee who normally works 30 hours a week but works only 20 hours in a week because of FMLA leave would use one-third of a week of FMLA leave. An employer may convert the FMLA leave usage into hours so long as it fairly reflects the employee’s actual workweek.”
Shorter workdays may not work as well for employers that maintain 24-hour, seven-day operations. But reducing the number of workdays may be feasible.
And a final caution comes from the raw reporting data in the 4 Day Global report cited above. Reported scores for job satisfaction and life satisfaction increased significantly from the inception of the pilot program to the six-month baseline but dropped slightly from the six-month point to 12 months after inception. Employers and employees may realize that shorter hours or workweeks are not a panacea for all workplace challenges.
The trend among employers is to offer employees flexible schedules that include shorter workdays or workweeks. Employers that do so are largely pleased with the results for the organization and its employees. Some employers may not be able to offer alternative work schedules, but those that can but don’t may find themselves falling behind competitors that are able to attract and retain the most qualified employees.
Employers Council’s human resources professionals are ready to discuss the practical considerations of implementing reduced work schedules or shorter workweeks with Enterprise and Consulting members. Our attorneys are ready to discuss how to avoid legal issues when transitioning to alternative workweeks. Please contact us at info@employerscouncil.org.
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