The problem with the idea of “everyone working less” is that some people won’t work less. Even now, there are people who work more than 40 hours / week.

Someone who works 25% more than you will make 25% more wages and will afford a 25% more expensive apartment, etc.

So long as you’re comfortable living in a suburb with lower desirability, you’ll be fine. But you might get priced out of places where people work more…

In fact, it doesn’t take a law for you to decide to start working less. Plenty of people work part time… You just need to balance how much you work with the affordability of the lifestyle you want to live.