The Next L.A. / Reinventing Our Future : The Workplace : IDEA FILE: Work Fewer Hours

How It Works

Overtime pay would be eliminated. Employers would establish a standard work week for every job--for example, 30, 40 or 50 hours. For work beyond those hours, employees would be compensated in time off--one hour off for every extra hour worked.

Benefits

By earning free time, workers would gain flexibility. They could save time for longer vacations--or for the freedom to attend their child’s school play. Workers now paid time-and-a-half for overtime would be stripped of some of their incentive to work longer hours. Free time might seem a better deal if the alternative is straight pay rather than time-and-a-half.

Also, white-collar workers who now are obliged to work an unlimited number of hours for their weekly or monthly salary would regain some control over their work time. If only one big firm in an industry begins using shorter hours as a recruiting tool, all its competitors may be forced into line.

Short-Term or Long-Term Impact?

Other than the need to change the federal wage-and-hour law, there’s nothing to stop it from being implemented immediately.

Supporters

Some economists say it would make workers happier and more productive by increasing their leisure time. They acknowledge that workers who now depend on overtime pay to support their families initially would be hurt. But they cite studies showing that employers who rely on overtime tend to pay less per hour overall. So in time, wage rates might rise to make up for the lost hours. Also, supporters note that productivity tends to rise as people work shorter hours. So companies may be surprised at how little hiring they need to do.

Opponents

Employers worry that they would have to hire more workers to get tasks done. That would be good for the job picture, but tough on corporate balance sheets.

The Costs

Companies bear the cost of retooling their personnel systems. And their shareholders may have to swallow some of the costs of adjusting.

The impact on consumers depends on how companies respond. If they can keep the costs of any new hiring in balance with the savings from reduced overtime wages, the price of goods and services will be stable. Lots of added hiring of full-time workers with costly benefits could raise prices.

If unemployment falls, taxpayers save. If fewer overworked people abuse or neglect their children, society benefits immensely--and saves in costs of public social services.

Also, workers who need money--either to survive or to support a grander lifestyle--may seek second jobs, further crowding the market for part-time work and undermining the goal of restoring to people their free time.

REALITY CHECK

Probably zero chance. The average work week has been rising for 20 years, and it would take immense effort to reverse the trend. There’s little evidence that stressed workers are prepared to translate their cries for help into a campaign to shorten the work week. No.