The 40-hour workweek has been the federal overtime standard since 1940. A bill reintroduced in Congress this fall would change that. The Thirty-Two Hour Workweek Act would make overtime pay start at 32 hours for hourly workers, and it would add a daily overtime rule that federal law has never had.
The bill is early in the legislative process and faces long odds, but the same idea is now showing up in state legislatures. Because overtime is one of the most direct drivers of labor costs, employers with large hourly workforces should familiarize themselves with the bill.
What the Bill Proposes
H.R. 10323, a reintroduction of H.R.4728 and H.R.1332, proposes the following:
- Reduce the standard workweek from 40 to 32 hours over four years by lowering the maximum hours threshold for overtime compensation for non-exempt employees.
- Require overtime pay at time and a half for workdays longer than eight hours, and overtime pay at double a worker’s regular pay for workdays longer than 12 hours.
- Protect workers’ pay and benefits to ensure that a reduction in the workweek does not cause a loss in pay.
Who the Bill Covers
Because the bill would amend the Fair Labor Standards Act (FLSA), it applies to nonexempt employees, or the workers already entitled to FLSA overtime. For most employers, that means hourly staff.
The bill leaves the existing FLSA exemptions in place, including the requirement that most exempt employees earn at least $684 per week. For more information, check out our guide to exempt versus nonexempt employees.
The Phase-In Timeline, If Passed
The weekly threshold would not drop to 32 hours overnight. The bill proposes phasing it in over four years, with the first step beginning no earlier than 180 days after the bill becomes law.
| Period | Weekly Overtime Threshold |
| Year 1 | 38 hours |
| Year 2 | 36 hours |
| Year 3 | 34 hours |
| After Year 3 | 32 hours |
Where the Bill Stands Right Now
H.R. 10323 was referred to the House Committee on Education and Workforce on September 8, 2026. As of this writing, the committee has not taken it up. It has six Democratic cosponsors and no Republican cosponsors.
The 2021 and 2023 versions never advanced out of committee and stalled when their sessions of Congress ended. The current bill was introduced late in the 119th Congress, which ends in January 2027. If it does not pass by then, it would need to be reintroduced.
Federal passage is unlikely in the near term. Employers should still watch for state activity. Washington lawmakers, for example, introduced a bill this year that would set a 32-hour overtime threshold for private and public employers in that state.
How This Differs from a Four-Day Workweek
The name suggests a four-day week, but the bill does not set the number of days anyone works. It changes when overtime pay begins. An employer could keep a five-day schedule and pay overtime on the hours past the threshold, or reduce the amount of hours per day to stay within the limit.
The bill does require overtime for any hours beyond eight in a single workday. This makes the typical workday eight hours, meaning a worker would only need to work four to reach 32 hours.
How Employers Can Start Preparing
While there’s nothing to comply with yet, a few low-effort steps can show you what a lower threshold could cost and put you in a better position if federal or state rules change.
- Audit current overtime: Pull a year of time and payroll data for nonexempt employees. Look at how many hours fall between 32 and 40 each week and how many shifts run past eight hours. Those two numbers tell you how much of your current paid time would shift to overtime. Our overtime calculator and guide on how to calculate overtime pay can help with individual cases.
- Model each phase-in step: Run your labor budget at 38, 36, 34, and 32 hours. Include the daily overtime rule. Private employers should budget for overtime as cash, since the FLSA doesn’t allow them to offer compensatory time. The results will show which departments or locations would feel the change first.
- Review classifications: Confirm that every exempt role meets the duties and salary tests. A wider cost gap raises the stakes of getting it wrong.
- Revisit schedules and definitions: Note where you use compressed schedules or 10-hour shifts. Check how your benefits plans define full-time status, since a shorter standard week may prompt questions about eligibility. If you change schedules to manage overtime, check whether local predictive scheduling laws require advance notice or premium pay for schedule changes.
- Track state and local rules: States can move faster than Congress. Where a state law is stricter than the FLSA, the stricter rule applies.
How Other Employers Have Tried a Shorter Workweek
No U.S. law requires a 32-hour week, but some employers have tested one voluntarily. Their results offer a preview of the operational questions a lower threshold would raise.
San Juan County, Washington
San Juan County adopted a 32-hour workweek for union-represented staff in fall 2023 with no cut in pay. It was largely a budget decision. The county could not afford the cost-of-living raises employees were seeking, so it reduced hours instead of raising pay. Employees kept the same salary for fewer hours, which raised their effective hourly rate without adding cost
The county’s two-year final report found about $1.9 million in avoided costs. Employees used 18% less sick time, and voluntary separations fell 28%. The county also received about 216% more job applications. Full-time hours were cut by 20%, but total hours worked fell only 13%, partly because the county filled more vacancies. In December 2025, the county made the 32-hour week its permanent standard.
The report also named challenges. Different departments kept different hours, which created confusion for the public. Many exempt managers said they could not benefit from the change and were absorbing heavier workloads. That gap is worth noting, since H.R. 10323 would also apply only to nonexempt employees.
The UK four-day week pilot
In 2022, 61 UK companies (about 2,900 employees) tested reduced hours with no loss of pay for six months. The organizers set a 32-hour target, but companies could design their own models. Some closed one day a week, while others staggered days off or averaged hours over a longer period.
According to the final results report, 56 of the 61 companies continued the policy after the trial and 18 made it permanent. Staff departures fell 57% during the pilot.
How Paycor Helps
To stay on top of overtime rules, Paycor’s time and scheduling tools automatically calculate and track overtime hours across different pay rules. The software gives real-time visibility into labor costs and budget tracking through customizable dashboards. Break down your overtime spend by department, manager, location, and more to see where overtime is concentrated and how a lower threshold would affect your labor costs.