Proponents of a new Assembly Bill say a shorter workweek would increase employee productivity.
A reduction in work hours without a commensurate reduction in pay essentially forces business to give their employees a 25 percent salary increase without increasing productivity. That increase in overhead would force businesses to ultimately pass those costs to consumers. Since the pandemic began and through the great resignation, businesses continue to struggle to hire workers. This bill would be devastating for the California economy.
: The bill would require employers to pay the same rate of pay as the current 40-hour week, another 25 percent raise, and exempts unionized businesses. Given the inflation rate, businesses have been hit with increased energy and product costs, property and health insurance costs and labor and related costs that have risen dramatically. The minimum wage would effectively be $18.75, more than double the rate just 6 years ago.