Rep. Takano Introduces Legislation to Reduce the Standard Workweek to 32 Hours
takano.house.gov
takano.house.gov
If you reduce hours per worker by, say, 10% you just pay each worker 10% less and hire 10% more workers, right? It's not so simple. If you try to cut the health insurance premium of each worker by 10% the policy becomes unattractive. If you keep the same policy, you increase your health insurance costs by 10%.
For this and other reasons, it's time to separate health insurance from employer.
If you have 90 units of work to be done you might hire 9 workers at 10 units each. If the standard work goes down by 10%, you now need 10 workers at 9 units each. Your workers have increased by 11.1% (given by 1-1/(1-0.1))
A reduction from 40 to 32 would reduce hours per worker by 20% but increase workers and total health care costs by 25%.
https://www.npr.org/2021/07/06/1013348626/iceland-finds-majo...
> Now, research out of Iceland has found that working fewer hours for the same pay led to improved well-being among workers, with no loss in productivity. In fact, in some places, workers were more productive after cutting back their hours.
But no task that actually needs done is purely coverage related. If you want someone to watch dor security purposes, you want them to actually effectively secure it to some level, and if average ability to do that drops from overwork you need more people; if you want someone to run a cash register, just having a body next to it isn't enough, they have to actually perform correctly.
For the record I fully support any push to reduce the amount of work people are expected to do, but claiming there's no impact because of productivity gains just doesn't add up in many cases.
The study wasn't restricted to desk jobs. Broader studies and international comparisons lead to a similar though weaker conclusion; in general more working hours over the range seen in most of the world (from about the mid-20s average hours worked per week, including both full workweek length and time off up) leads to a dramatic fall off in per-hour productivity.
Maybe, maybe not. Perhaps being better rested makes them collaborate better with the other chefs. Maybe the improved morale helps come up with a new menu item, or a more efficient way to make a dish. Maybe they wind up staving off carpal tunnel.
For sure, some jobs are more affected than others. But there are few jobs that aren't affected at all, and we shouldn't cut off the nose to spite the face.
A rule of thumb is a worker's full cost is 2x their salary in the US. This varies, but it makes the math easy.
So costs would increase about double that. But if your workers are doing creative work, they might be more productive now per hour and that might offset the costs.
This is similar to what's happening right now with companies that try to do locality adjustments for remote workers -- they get out-competed by companies willing to pay full price regardless of location. Eventually this will cause locality adjustments to vanish completely imo.
Assuming per-hour productivity is constant, which it is not; productivity goes down with more hours worked (both in a “full work week” and in the annual number of full work weeks.)
Declining marginal productivity by hours worked per unit time definitely applies to repetitive physical labor past, too.
So this is another way that tying health insurance to employment creates pockets of unfairness and undesirable outcomes. While I'm not sold on having a government run healthcare system (the pandemic only reinforces this), there are plenty of hybrid systems out there in other industrialized nations that might (must recognize each country's situation is unique) have better outcomes.
Would you mind elaborating on that? From my own perspective the federal government’s ability to help fund and drive the vaccine development and then to purchase in quantities to get the entire population vaccinated is actually proof of how powerful a single payer system could be. I’m curious as to what I might be missing.
1. Fund and drive vaccine development
2. Purchase large quantities
Neither of those is what I want from my insurance company. How much are those two things costing me? If my taxes just went up $100/year for the next 3 years to pay for that vaccine, that maybe wasn't ideal. If my taxes went up $10 total, that was an awesome deal. If I have no idea how much that vaccine cost me, and nobody else seems to have a way to figure it out, that's really bad. One of my biggest complaints about health insurance in general is the lack of transparency. If government control reduces transparency, that would be bad.
Are governments or private companies more transparent?
A reminder that government services suck on purpose. There is no reason for government healthcare to be ineffective other than the malicious intent of those who run our government (D or R).
Yes. Government employees and elected officials have weekly meetings with a standing question: Where are we doing things well? And then they coordinate to fuck it up and make it suck. /s
I have these 2 questions/thoughts:
1) Do you think it's a good idea to have all the branches of the government controlled by 1 party? We actually had this a few decades ago in the Czech republic and we refer to that period as "totalita" or dictatorship. Let's say the wet dream (based on comments like yourself) of all Democrats becomes real and they control everything from communal level to presidency. How is it different than China, USSR or Czechoslovak Socialist Republic?
2) What has changed in the past half a year? If I am not mistaken, Democrats have had control of the presidency and house for over half a year now. I admit HN is my only source of news, but it seems like there are still ICE camps. There is still half-built wall between US and Mexico. The US still drones countries on the other side of the world. From the statistics people are still living paycheck to paycheck and can't afford healthcare (I understand the plague has its fair share here too). The US still helps Israel, which is IMO a rogue state at this point, as per the Pegasus scandal.
1b) We don’t really need 1 party. More than 2 parties would be great as well. But really we just need the Republican party to not be obstructionist nor actively harmful to democracy.
2) Democrats have the presidency, which, while having greatly expanded powers over the last 50ish years, is still a relatively weak executive. The Democrats have a narrow majority in the House and Senate; due to parliamentary rules, the narrow majority that they have does not allow them to pass or amend laws as freely as you may think. The Supreme Court, while notionally non-partisan, is filled with a majority of conservative Justices which can dissuade or reverse policy made by more liberal branches of the government (federally, or at state levels).
2b) 6 months is not a long time for governments the size of the US. Barrack Obama likened it to a large ocean-liner: there’s a lot of built up momentum, so it takes a long time to stop it or change direction.
>> the risk in the public ACA pool is lower than the employer's pool of employees
as a general rule, the public pool is substandard rating.
The ACA is actually a wealth transfer from the young to the old, like social security, because the young pay much more than their portion of healthcare costs, while the old have a ceiling on their healthcare costs.
Whether this is good policy is for the think tanks and politicians, but after the ACA it is not true that health insurance discriminates against older Americans.
That's a weird way of putting it. Young people are getting far less value from their healthcare premiums than the old. That's how the entire system is able to work.
Health insurance, social security, medicare etc. all discriminate against the young in favor of the old. And I'm not passing judgement for or against such a system. That's just how it is.
Medicare exists only for the elderly.
While the rest of your comment is a fair concern, I want to push back on this default assumption.
While I'm sure there are roles that are pretty much 1:1 with output to hours worked, I don't think it's always true.
I think for software developers, for example, I get 90% of the productivity out of the first 32 hours of work that I would get out of 40 hours of work.
I've worked in lots of offices and watched people, especially "important" ones. It's fun to watch. They're so busy the strain is enormous. But if you pay attention, they spend lots of time calling their sister, talking to the Schwann's man.. "I work so hard I never leave work" but little actual work is done, but much is made of the number of hours spent there.
I've always been amazed that those fancy attorneys manage to bill the same $1k per hour when they're super focused as when they're eating a sandwich or shopping for engagement rings online.
If a job is more defined, like flying a plane, or operating a cash register, hours are equal to work, so limiting hours is possible.
If I could have worked just 40 every week with 3 weeks actual taken vacation, it would have been nice.
Even though I was salaried, failing to have 40 hours on my timesheet each week would result in a proportional reduction in pay (there was no increase in pay if I went over 40). I mentioned this to higher ups and was told that it wasn't actually a timesheet, it was so they could determine "resource allocation", which sounded like an flimsy excuse. Using it to track PTO seems reasonable. Using it to track hours at my computer doesn't.
This wasn't a small inexperienced company. Its roots go back to the 1940s and it had over 20,000 employees, so they probably knew the relevant labor laws and either were allowed to do this or thought they'd never get called on it. Either way, exempt doesn't seem to mean much anymore other than another way for employers to squeeze employees harder.
On the whole I've been deeply fortunate to work only for companies that expect 40 hours a week. Maybe it's my field -- data science -- but either way I hope it continues. I'd do my part to make sure it does, if I knew what my part consisted of.
My current job I only work 35 hours a week and it's great. They pay us for an hour lunch basically and I just take it at the end of my day, thus shortening my day to 7 hours.
If an individual goes under the full eight hours, it reflects poorly on them during evaluations. If the division goes overtime on project hours, nothing bad happens. So naturally each developer is incentivized to jot down extra time and disincentivized from tracking time truthfully. And yet management wonders why we go overtime on so many buckets!
And everyone knows the numbers aren't real, yet the song and dance must go on. I really wish we had a term for this in English. I suppose 'Potemkin' sort of applies?
It seems like instead, almost all “knowledge work” is really fundamentally salaried work, where the employer/client should be paying for output, perhaps with contractual milestone deadlines that determine a boundary that the employee/contractor schedule their work to happen within — but with no contractual constraints on how or when the work happen within each milestone/sprint should happen, as long as the milestone deadline is satisfied.
This is already the universal expectation for “knowledge work” where the knowledge-worker is generally respected for their talent and is seen as hard to replace — e.g. in the working contracts between fiction authors and their publishers. Nobody gets paid a wage to write books. (We even distinguish this particular type of knowledge-worker, calling them a “creative”, as if that meant anything more than “a knowledge-worker, but, y’know, a respectable one.”)
Let's say you have some money and want to make something happen. You find a developer and an infrastructure person. Now you have to negotiate a price with each of them for some defined output (and unless you're technical you probably need to first negotiate with the dev to get her to produce an infrastructure plan, then find the infra person and negotiate with him, and then negotiate with the dev to get the work done).
Ok, you've spent a bunch of time negotiating individually and defining exact output specs that withstand contractual scrutiny. Then you get partway through development and learn something new about your market. You decide that you need to change your product a bit, so now pause development and negotiate a change order with your dev. You come to an agreement but the change requires infra changes. So you go negotiate with the infra person but you can't come to an agreement on the changes required.
Now you're paying the infra person to finish something you don't want any more, the dev can't do the additional work she's willing to do because the infra won't be there, and you're stuck building something that you don't even need. This doesn't even take into account that this model forces every single person to be both a negotiator and marketer of their own skills, in addition to whatever technical skills they have (comparative advantage shows that they should each just do what they do best). The obvious next step is for groups of people with complimentary skills to get together and negotiate projects together and from there it's a very clear path to ending up with salaried workers again.
The advantages of the Firm are just so great that even with a ton of waste it's still better than everyone individually negotiating their output. Look at the consulting companies for an example, even though they negotiate at the project level they still pay people salary. They know exactly how much bench time each person has and they still use that model over hiring for each project based on the project's output.
I was more motioning toward the idea of "sprints" as being a similar thing to "milestones" — i.e. that the product of one or two weeks of labor at expected levels of productivity are "the contractual output", and that beyond that, the process by which an employee produces "the contractual output" is a black box which the Firm should not tamper with. Each "sprint" is not exactly a negotiation, because the person defining the sprints should be someone on the knowledge-worker's "side", protecting them from Firm over-exploitation with the goal of ensuring their long-term productivity.
As it happens, this is the original idea behind Extreme Programming — with an engineering manager presenting an API to the Firm where the Firm can push Tasks to be worked on, and then the Tasks will get broken up + rearranged + scheduled into Sprints, and from there allocated onto a set of knowledge-workers; and where the Firm can't know or control anything more about that "thread pool" of knowledge-workers, other than 1. knowing who is part of it, and 2. examining its aggregate output at the end of the sprint.
I think the other big thing is, hasn't overtime only ever applied to people below a given salary level? I wonder, if this passed would it actually change norms at places that have institutionally always had people working a lot of hours? I'm thinking not just of some tech companies, but e.g. lawyers racking up billable hours etc.
If workers took a siesta in the middle of the day, they would avoid the heat to some degree, which would be better for the workers' health and may not greatly change how much work gets done. Workers operating in dangerous heat will either reduce their physical exertions in order to moderate their body temperature, take frequent breaks, or collapse (in which case they are getting no work done, and depending on how badly injured they are, they may need to be replaced, which requires training etc.).
In other words, depending on the weather/climate in the future, reducing the work week to 32 hours may not negatively affect results from manual labor either.
I suppose many would think of it this way: "what's good for the long-term future of the country is good for my kids, but that's not going to help them much if I can't pay the next month's rent, or if I have to work so much that I never get to see them and raise them properly. So why not vote for someone who will help me get more money and spend more time with my kids now?"
I mean, it's absolutely mind-blowing that there isn't an entire line around the corner of politicians pushing for higher minimum wage, free education, free healthcare, basic income, etc. There are obviously some voices supporting all those measures, but I am surprised those individuals are not more popular. I suppose this is a very basic political science question, but I don't have any background in this field and today's topic once again made me wonder what's stopping us from adopting that and many other similar measures. Surely, those who stand to benefit something from it in the short-term outnumber the people who are going to be negatively impacted?
Think about lack of progress on building a sustainable energy model, protecting long term social safety net, ensuring long term stability of the country, investing in multigenerational building and infrastructure practices.
First, understand that while people definitely want short term gain, they also want long term gain. Most all people are decent to some extent, and want long term success for their family, community, country, planet, etc. So, keep that in mind, and then let's examine this:
> it's absolutely mind-blowing that there isn't an entire line around the corner of politicians pushing for higher minimum wage, free education, free healthcare, basic income, etc
There is widespread disagreement over whether this is a good idea in the short or long term. And, keep in mind, voters do want long term success! So, when half the country thinks policies like these would cause a descent into socialist chaos, it's not surprising that politicians can't win on these platforms.
Nevertheless, we are constantly dealing with the ramifications of policies politicians crafted for short term gain. The mortgage interest rate deduction is a great example -- politicians subsidized homeownership, which was very popular, and we are left dealing with the drastic ramifications of a totally messed up housing system. Similarly, guaranteeing loans to help people go to college -- very popular in the short term, but has led to the ballooning of education costs.
The difference between these policies, and the ones you mentioned, is that they passed during a period of relative national unity, so it was much easier to get them through Congress.
Politicians care about getting elected and then re-elected, in that order. Somewhere much lower in their set of priorities is pushing policy.
My first experience with this was high school. Freshman year the student body presidency was won by the fellow who promised that we would get sodas added to the machines (rather than the no-caffeine options that were then available). Bullshit. But he won. In his acceptance speech, he explained it straight out, and we all learned something.
The work week here is 35hrs/week, with exceptions allowed for up to 40hrs/week, but the extra has to be compensated 1:1 with extra paid vacation time ( on top of the minimum of 30 days paid time off).
Of course it's probably low in importance compared to certain other modes of travel that have big externalities that aren't tolled/taxed appropriately...(air travel).
A consumption tax would be something more like "I want to buy a new hillside estate and I have to pay this special 20% fuck you tax because I'm excessively wealthy".
Consumption tax code could be fairly complex in order to minimize impact to those who are purchasing day-to-day items and other essentials. I would happily pay extra taxes on my discretionary purchases like high-end PC hardware (and probably make more of them) if it meant that on the other hand I wouldn't be penalized just for working and making money. Anything you could buy at a grocery store should probably be exempt or in a tightly-controlled tier.
Property taxes are cool too. Land is a ~fixed resource, so you have to have some counterpressure involved there. I am not saying alter property taxes to accommodate any of this, I just think they have a place.
If every road was a toll road you would have more walkable cities. Better public transport options. Less emmisssions.
Sounds like a wonderful trade off.
IMO, any tax system where the poorest people pay a higher proportion of their income than those richer than them is flawed.
Re: implementation: make putting money into a bank account tax deductible and pulling money out taxable, then continue to use the existing income tax system. Any money you earn that you don't spend is a tax write-off, any money you spend that you didn't earn this year is something you have to pay more taxes on.
I came up with a strange idea that is slightly better. When banks create money via loans bind the lifetime of the deposit to the lifetime of the credit. I.e. individual dollars have expiration dates that are directly tied to monthly payments. If people default then the dollars expire and the bank has to either compensate by raising its interest premium or by lowering interest rates on the deposits to compensate the loss. This means that interest rates would have to be negative sometimes and all debts can be repaid one day.
Of course the cash withdrawal scheme is equally complex because cash represents perpetual deposits which would require a perpetual government bond on the other side.
Banks would transfer their worst deposits first when you transfer to another bank which would drag all banks to roughly the same level of interest without needing a central bank to set interest rates. The equilibrium interest rate would discover itself automatically, at least that is the hope.
https://www.dol.gov/general/topic/workhours/parttimeemployme...
The Fair Labor Standards Act (FLSA) does not address part-time employment.
I wouldn't be surprised if employers jump all over this to allow them to save billions by getting rid of full time work.
Edit: Spelling/Grammar
That is what concerns me too.
Well-meaning laws that do not consider the second- and third-order effects can be easy for employers to game.
"If you want to work more than 30 hours per week, you have to become an independent contractor."
Yeah, I’m sure that missing out on that is the kind of thing that would fly right by AFL-CIO, SEIU, and the other labor organizations that endorsed this, who are generally completely clueless about the legal context of labor and how employers exploit it.
Unfortunately, official text for H.R. 4728 [0] is not yet available, though, so we can't really resolve this.
[0] https://www.congress.gov/bill/117th-congress/house-bill/4728
In reality, this would likely push some employers to leave ~Cali~ (EDIT: mean the U.S., didn't realize this was federal) (such as SpaceX, Tesla, etc), as they wont want to pay overtime.
It would also potentially push people to hire more salary employees, but they'll only be paid for 32 hours. That could suppress salaries (as the employer will only pay say $100/hr, they wont increase it so it'll potentially be a 20% cut in pay).
Essentially, continue the drive to push all the jobs overseas.
That will only work for certain kinds of workers. Not all jobs can be exempt from over time (IT jobs are though).
Honestly in my opinion, gig apps are a great start, but they suck at the moment in a similar way jobs before the new deal sucked. The worker needs more rights, they need more control of their pay. A New, New deal in my opinion would probably be giving employee rights to gig workers, who control their own time, and pay. And probably adding a basic income floor to prevent a race to the bottom.
Same with the $15 minimum wage. But it's a start.
EDIT: Found it. For the curious: H.R.4728 https://www.congress.gov/bill/117th-congress/house-bill/4728
It seems like this would just lead to businesses who employee non-exempt employees hiring more of them but scheduling for fewer hours to stay under the 32 hour threshold. Simple changes to a system as complex as our labor laws are just not going to do the job. We need to look at employee classification as though we were starting from scratch to design a system that makes sense for the realities of today - gig work, remote work, side hustles, etc.
That’d radically change the structure of the health insurance industry, since working full time hours by combining two part time jobs would imply that you’d get health insurance just like full time workers at either company.
Section 213 is what you want to look at. It’s not really a matter of choice but industry, role, and hourly rate that determines if someone is considered exempt.
I didn't say that employers would try to reclassify their employees - I said that they would keep their non-exempt ones under the 32 hour threshold.
... I mean that's kind of the point, right? The AFL-CIO rep quote basically says that it will spread the existing hours around to more people.
There are also some cases where companies have few enough qualified candidates where they are already paying overtime, and this will not significantly affect them. For example if you are working 56 hours a week, then you are currently getting paid for 64 hours of labor (40+16 and 1.5x) and after this you would be getting paid for 68 hours of labor if you continued to work 56 hours.
[1] https://economics.stackexchange.com/questions/15558/producti...
[2] https://www.politifact.com/factchecks/2015/sep/09/viral-imag...
"McDonald’s to Employees: Get a (Second) Job" https://www.motherjones.com/food/2013/07/mcdonalds-budget-mc...
[1] https://www.stlouisfed.org/open-vault/2020/december/has-weal...
https://ourworldindata.org/grapher/productivity-vs-annual-ho...
Could you point me to your preferred sources for this info?