Bill Would Cut Overtime Threshold to 32 Hours
Employers of full-time hourly staff would owe overtime after 32 hours a week under the proposed bill.
Updated on Nov. 2, 2026 in Employment
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Sen. Bernie Sanders and Rep. Mark Takano introduced the Thirty-Two Hour Workweek Act, which would make 32 hours the standard workweek and require overtime pay beyond that threshold. The bill would bar employers from cutting pay or benefits and would phase in over several years. Operators in any sector with full-time hourly staffing would face new overtime thresholds if it advanced.
Why it matters
The bill targets the 40-hour standard set under the Fair Labor Standards Act in 1940, which proponents say should be revisited as AI-driven productivity gains accrue. Its stated aim is to address wealth inequality, while critics expect higher labor expenses that could push prices up and weaken hiring.
Full-time U.S. employees averaged about 43 hours per week in 2024, down from 44.1 hours in 2019, while the bill would move the overtime threshold from 40 hours to 32. Duke University economists estimate the optimal workweek at 37 hours.
The players
Sen. Bernie Sanders
Independent senator from Vermont known for progressive labor and economic-inequality legislation affecting employers nationwide.
Rep. Mark Takano
Democratic congressman from California who co-sponsors labor-focused legislation on the House side.
Duke University
Private research university whose economists produced an estimate of the optimal workweek length relevant to employers' scheduling decisions.
The details
The bill would require employers to pay overtime once an employee works more than 32 hours in a week, rather than 40. Employers would decide how the 32 hours are divided and whether employees may work extra hours for additional pay. The bill would also prevent employers from cutting pay or benefits, and the change would phase in gradually over several years so businesses have time to adjust.
Timeline
The 40-hour workweek was set under the Fair Labor Standards Act in 1940.
Average full-time workweek was 44.1 hours in 2019.
Average full-time workweek was about 43 hours in 2024.
The Thirty-Two Hour Workweek Act was introduced in Congress in October 2026.
Market Landscape
The proposal would revisit the 40-hour overtime standard that the Fair Labor Standards Act set in 1940. It sits against a backdrop of average full-time hours falling from 44.1 in 2019 to about 43 in 2024.
Operators with full-time hourly staff should model payroll under a 32-hour overtime threshold alongside the current 40-hour rule. Review scheduling practices now, since the bill would phase in over several years and employers would decide how hours are divided.
The takeaway
The bill's practical test for operators is how overtime cost changes once the threshold drops to 32 hours. Track the bill's progress and begin modeling hours and labor costs now, and consult a qualified employment attorney or accountant before making staffing changes.
Further reading
For context on how overtime rules shape hiring and payroll, see the Employment section.
Source note: This article includes information reported by Money.
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