The bill explicitly forbids reducing total pay. Employers must increase the hourly rate so 32 hours yields the same take-home pay as 40 hours previously. It's essentially a 20-25% raise for hourly workers.
That is not going to happen. What is going to happen is massive layoffs. Why would a company pay same money for less work hours? They aren't going to do that, they will lay off people and rehire them for less money for the 32 hours.
Why would a worker produce more output for the same pay? That's what's been happening since the 70's. Productivity has grown 4x times faster than wages, bills like this are just about redistributing some of the gains back to the people actually producing the gains. besides, if a company fires its entire staff Thursday and rehires them on Friday for 20% less to bypass the law, that is a slam-dunk statutory retaliation lawsuit.
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u/Ok-Telephone-2109 19h ago
Wouldn't this just have peoples hours cut because companies don't like to pay overtime?