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United States Businesses

California Weighs Shift To 32-Hour Work Week For Larger Companies (cbsnews.com) 193

Assembly member Cristina Garcia has cosponsored a bill to make the state's official workweek 32 hours for companies with 500 or more employees. CBS News reports: Any work done past that cutoff would come with a hefty raise: Employers would be required to pay time-and-a-half to workers whose hours run over 32 a week. And work stretching past 12 hours a day or into seven days a week would be paid at double the normal wage. Employers subject to the law, which would apply to 20% of California's workforce, also would be barred from reducing people's pay if they work less than their standard workweek, Garcia told CBS News. The bill would not apply to workers who are represented by a union and covered by a collective bargaining agreement.

The proposed law would cover about 2,600 companies in California, according to the Employment Development Department (PDF). The California Chamber of Commerce called it a "job killer," saying it would make hiring more expensive and lead to a drop in jobs in California. "Labor costs are often one of the highest costs a business faces," Ashley Hoffman, policy advocate with the Chamber, wrote to bill cosponsor Evan Low last week. "[B]usinesses often operate on thin profit margins and... the number of employees you have does not dictate financial success," she wrote.

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California Weighs Shift To 32-Hour Work Week For Larger Companies

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  • Thank you notes? (Score:4, Insightful)

    by Geodesy99 ( 1002847 ) on Wednesday April 13, 2022 @09:57PM (#62444684)
    Did the California Job Destruction Act get a thank you note from the state governments of Texas, Arizona, and Idaho? Hell, for that, I'd go all out and send a fruit basket.500 employees sounds like a lot, but if your, say, a contractor servicing 10 cities, with a couple of job sites in each city, covering two shifts, plus having slack for people out for vacation, illness, etc. it's not. It makes it incredibly motivating to lay people off if at times you approach the limit if there isn't a full pipeline of work coming in. 500 is some sort of 'magic number' made up by bureaucrats.
    • Per capita GDP of CA: >$80k
      Per capita GDP of Idaho: $50k

      What's really funny is the source I got that from treats both as outliers. There's no indication how far above $80k CA is, and none for how far below $50k Idaho is.

      They're not even in the same class. Relatively speaking, Idaho is still a developing economy. Like Brazil or Mexico.

      I think it'll be fine.

  • Thought exercise (Score:3, Insightful)

    by kenh ( 9056 ) on Wednesday April 13, 2022 @10:37PM (#62444764) Homepage Journal

    Let's say you work at Amazon, in a warehouse that employs 3,000 workers, and you make $17/hr as a full-time, 40 hour a week worker, earning $680/week.

    If passed this law would cut your hours to 32/week, and you'd be paid the same $680/week for those 32 hours, making each of your 32 hours worth $21.25/hr sounds great, right?

    But wait, any chance your employer (Amazon) would simply hire an additional 600 workers, each now earning $21.25/HF for their now 32 hour work week and eat the loss? Of course not.

    They will explore moving as many jobs as they can out of CA, which would likely mean turning every worker into a contractor, working for a subcontractor, not Amazon - there goes Amazon healthcare, Amazon tuition reimbursement, etc.

    Oh, and if you unionize the warehouse, the facility will be exempt, so all the workers will be back at a 40 hour work week, earning $17/hr... Unions, yay!

    Yet another ill-conceived, job-killing, anti-worker proposal from the CA state legislators.

    • by ArchieBunker ( 132337 ) on Wednesday April 13, 2022 @10:47PM (#62444778)

      You are under the impression that California is becoming anti business. California is pro worker. If California were a country it's economy would the fifth largest on the planet. The fact that it's a massive capitalist success while being left leaning pisses off republicans to no end.

      • The success is due to freedom and location. Bloated government grows up around it as a parasite, then laughably pretends it is the cause.

        • The success is because the workers feel safe and like they are heard there. So good workers who are looking for somewhere to settle pick California. They get people from all over the world there,m pouring in to work - and that hasn't changed because of the government, on the contrary, it has increased (controlled for overall rates in the US).

          So yes, the government is definitely the cause of the immense success of corporations in California. Good workers like having a good work environment, what a crazy conc

          • This is what red-state haters don't seem to understand. California is setup for winners. If you're a winner, moving here will preserve your individual rights in the workplace better than pretty much anywhere else in the U.S., increase your salary, boost your retirement fund, and make you even more successful.

            Much of America has simply accepted poverty as a way of life. They keep trying to compete on cost. So, they compete with the third world where there are no worker rights or prosperity. They're like serf

        • California is so terrible yet Trump had to build a massive wall to keep people out.

          • Red states literally bought up the immigrants kidnapped by the Dutch and bred them in order to create an elite class who could live like European nobility.

            But when California wants to allow Mexicans in so that Americans don't have to do stupid low-wage work, all of a sudden red states have a problem with immigration.

    • Or maybe Amazon will just pay them 8 hours of overtime, since it may be the easiest and cheapest option to continue operating in Cali. Good luck finding 600 more workers.

  • by mrsam ( 12205 )

    California is bleeding. It's a challenge to find an available U-Haul, every available one is being used to U-Haul U-Ass out of state. The Golden State lost congressional seats in the last census. It'll lose more in the next one.

    This is a brilliant solution! Making it even harder to do business in the Golden State will surely encourage new business to flock in, and create more employment opportunities, and more job opportunities for the Golden State!

    • U Hauls are regional. Almost all those U Hauls are going to other California cities. The number of people leaving California hasn't really changed. The actual story is there's less immigration from other American states and more immigration from other countries. With no change in people leaving.

      And the actual reason for this is probably because much of America has become economically closer to the third world. Non-Californian Americans have just been priced out, so immigration comes from first world countri

  • by schwit1 ( 797399 ) on Wednesday April 13, 2022 @10:54PM (#62444794)

    If the bottom line is not cost competitive the job moves to Texas or China. Or the big company will break into smaller companies to get around the law. Or the big company outsources jobs to get under the 500 limit. Or the company pays a lobbyist to get an exemption put in the law.

    May 2, 2022 Rates for a 15' U-Haul Truck
    $3,740 Los Angeles, CA to Austin, TX
    $1,346 Austin, TX to Los Angeles, CA

    • Jobs requiring qualifications are no where near as mobile as you think. You can move unskilled manufacturing around but that's not exactly what this article is talking about is it.

    • by AmiMoJo ( 196126 ) on Thursday April 14, 2022 @05:32AM (#62445286) Homepage Journal

      They said the same thing when France adopted a standard 35 hour working week, and it didn't happen.

      This is California, wages are already high. If exporting those jobs was desirable or practical it would have happened already.

    • It may be possible for some companies to eliminate most of their major job functions and then rehire everyone through a contractor. As long as the contractors don't individually hire more than 499 people, problem solved.

  • by smoot123 ( 1027084 ) on Wednesday April 13, 2022 @10:58PM (#62444812)

    I was confused about who is covered by this bill. I think there are two really important caveats.

    First, I think it's only covering hourly workers, not salaried, and only for companies with more than 500 people. I don't know how that works for franchised businesses: do you work for the parent company or the franchise?

    Second, it doesn't cover union workers. They'll have to negotiate this deal one at a time. Makes you wonder why they didn't negotiate it already.

    If I ran a company with 1,000 hourly people, I'd definitely go out of my way to ensure none of them was scheduled for more than 20-30 hours per week. California is making it way to expensive to schedule someone for more.

    • by Vrallis ( 33290 )

      If they really want to make a difference then they need to remove the concept of part-time work. If you work, you work, period, full benefits.

      • If you make $80k/yr and are working 40 hr/wk (2000 hr/yr), your effective pay rate is ($80,000/yr) / (2000 hr/yr) = $40/hr. If you decrease the work week to 32 hrs while keeping the salary at $80k/yr, your effective pay rate goes up to ($80000/yr) / (1600 hr/yr) = $50/hr.
      • If you make $10/hr and are working 40 hr/wk (2000 hr/yr), you're making ($10/hr) * (2000 hr/yr) = $20000/yr. If you then limit the work week to 32 hours, this becomes ($10/h4) * (1600 hr/yr) = $16000/yr.

      In the salary case, the natural r

  • we need an X2 OT level (for both hour and salary)!

  • Popcorn time (Score:4, Insightful)

    by rantrantrant ( 4753443 ) on Thursday April 14, 2022 @05:41AM (#62445300)
    It's entertaining to watch American Slashdotters turn on each other like starving stray dogs every time there's an article about giving the poor a break. Those arguing for it being set upon by hard-core neoliberals & conservatives. It's a great insight into the mindset of voting topics in the USA too.
    • How is this giving the poor a break?

    • It is a bit interesting how much dialog there is to be had at setting "Full time" to 32 vs 40 hours, and it sounds like the bill is supposed to try to nip some of those 'just under full time' games in the bud. Large corporations are already playing with it, all the flexible work hours and work-life balance pushes encourage a bit more 'rounding up' on hours worked than the past water cooler chat stuff added up to. Something like this just pushes some of those white collar benefits down the ladder a bit.
  • Most white-collar people don't work for 40 hours a week, and we need to hire more people to work for less time not less people seeing their families for less time

    • "Most white-collar people don't work for 40 hours a week"

      7:30 to 4:00 with a half hour for lunch five days a week does indeed work out to 40 hours a week.

      And I was salary exempt, in R&D. Definitely white collar.

    • No, we've worked 50 to 60 hours a week, not 40. Salaried positions have always had that embedded notion that you work when it's required. Sometimes there's a slack week or day but that's it's less frequent than the over 40 weeks.

  • Two Choices immediately come to mind. First, the company just reduces your wage proportionally if you're salaried and if you're hourly punching a clock you'll lose out too because O/T will be hell to get. Second, the company just leaves California. If you have over 500 employees you can afford to relocate out of the state.

  • Step right up, folks. Do you want to earn more but work less? Just re-elect us, and it will be your future.

    So, either they get paid the same for 32 as 40, roughly a 25% increase, or they have to get paid overtime to work the extra 8, at least a 10% increase. Either way, the consumer of anything is SCREWED.

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