When Less is More: Legal Implications of the Four-Day Work Week

American work culture is an international standout—and not always for good reason. For many, working within Corporate America comes with an all-or-nothing approach, bending over backwards for minimal thanks and bragging rights about who has taken the least amount of time off. Across the pond, this mentality is not subscribed to; rather, Europeans tend to emphasize and adhere to a healthy work-life balance, fully take maternity and paternity leave, and refrain from logging on to check work emails after hours. Recently, a new wave has taken over and carried its ripples over to American shores: the four-day work week. Studies have shown that employees who work four days per week without a cut in a pay report increased job satisfaction, higher productivity, and overall greater happiness. But what are the legal implications for such a drastic shift in the traditional work format? Can smaller companies and start-ups keep up with the trend?

Four days versus four days

The original concept of a four-day work week stems from the 100-80-100 rule: 100% of the employee’s pay for 80% of the hours while maintaining 100% of their original productivity. This brings the hours per work week to thirty-two, but the employee is still compensated the same as they were while working a 40-hour week. The intention is that employees use those thirty-two hours more efficiently because of their newly condensed timeframe. An immediate potential issue here is with employees’ benefits package: employers must ensure that working thirty-two hours per week does not disqualify their employees from any benefits they received on the contingent that they were working full-time. If, for example, an employee is dropped from their healthcare coverage because they are no longer working forty hours each week even though they are technically still full-time, this could violate an employment contract and raise a potential legal dispute regarding compensation. To avoid these issues, employers looking to implement a four-day work week in this model must ensure all the benefits currently provided to their employees are still available to them if hours are reduced.

Another model that is being adopted—and perhaps one that fits a little more seamlessly into American hustle culture—is a four-day work week in which the same hours are worked, just spread over longer days. For a traditional forty-hour week, that means employees need to work ten hours on each of the four days, while pay and benefits stay the same. Ten-hour days also pose a unique set of legal challenges for companies: will some employees need additional breaks throughout the day, especially minors or those with disabilities? Are all of the employees physically capable of working a longer day? It is crucial for a business to take these factors into consideration before implementing change to avoid alienating workers who may have challenges working a longer shift.

Unintended effects

One of the frequently overlooked consequences of the four-day work week is the unintentional discrimination it may cause. The traditional forty-hour work week was created around the concept of a nuclear family, in which one partner worked a full week outside of the home with the support of the other, who tended to all of the home and childcare needs. This idealistic concept is far from the current reality of most families: to stay afloat, many two-parent households require both adults to work, while single parents juggle similar childcare concerns. Daycare solutions may not provide care for the full duration of a ten-hour day, leaving child-rearing parents in a lurch with scheduling. If longer, ‘after hours’ childcare is available, it may be too costly for workers to afford.

Additionally, longer days may disproportionately affect employees with physical and mental health concerns. Working an additional two hours per day can disrupt medication schedules, overlap with physical therapy and doctor’s appointments, or cause scheduling conflicts with mental health counseling services. While a longer weekend may help to resolve some of these challenges, ability to actually complete a full ten-hour day may remain an obstacle for some employees. All of these factors can pose potential employment discrimination issues and may result in litigation.

Bringing on new employees

Many businesses that implement a four-day work week see an uptick in job applications, and many view the shortened week as mutually beneficial: workers get a longer weekend, and employers can enjoy a happier workforce with renewed productivity. Of course, if the business is just doing a trial run of the four-day work week, it is crucial for any onboarding employees to know that fact before they sign a new employment contract. These documents should specify that whether the shortened workweek is a permanent fixture of the business, as well as outline compensation details that may be affected by it. If the business chooses not to stick with a four-day week in the future, they do not want their employees to be blindsided by this decision, nor have a large influx of resignations should the company decide a short week is not the best fit.

If a company does elect to shift to a shortened week, it is imperative for the employee handbook to be updated to reflect that change. Any compensation or policy alterations that occur because of this change should be elaborated upon here as well to ensure employees are put on notice of the updates.

Overall, making the switch to a four-day work week is a change that should be considered seriously before implemented. The legal implications vary from issues found in labor and union law to potential employment discrimination, and it is important that the business take time to weigh these factors thoroughly. The four-day work week can boost morale, increase productivity, and make a company a better place to work—but only if executed thoughtfully.

https://www.siskinds.com/four-day-workweek-legal-issues-for-employers/

https://www.fisherphillips.com/news-insights/4-day-workweek-right-for-your-business.html

Image sources: https://www.theatlantic.com/family/archive/2021/06/kickstarter-four-day-workweek/619263/ & https://www.emburse.com/learn/blog/heres-how-much-a-4-day-work-week-saves-on-business-expenses