S4242

An Act establishing a four-day workweek pilot program for certain State employees.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. The way Americans work has changed significantly since the 40-hour workweek was set by the Fair Labor Standards Act in 1940.

b. American workers are now more than 400 percent more productive than they were in 1940, and while company leaders have benefited by earning nearly 400 times as much as a typical worker, the weekly wages for the average American worker are lower than they were 50 years ago after adjusting for inflation.

c. Companies in countries across the globe have moved to a four-day workweek and report that revenue increased while employee satisfaction increased and burnout declined.

d. A four-day workweek pilot program was successfully established for certain departments in the Borough of Prospect Park, New Jersey.

e. A four-day workweek can provide potential benefits related to productivity, employee wellbeing, and operational efficiency.

2. a. Within four months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Commissioner of the Department of Labor and Workforce Development, in conjunction with the Chair of the Civil Service Commission, shall establish a four-day workweek pilot program for certain State employees in the executive branch and study the benefits and impacts of the four-day workweek schedule.

b. The commissioner and the chair shall consult with any State department, agency, commission, or authority, as necessary, to identify functions of State government for which a four-day workweek pilot program is feasible and beneficial for at least 60 percent of its State employees. The pilot program shall last two years. The commissioner, in consultation with the chair, may suspend or terminate participation for any entity if the pilot program results in reduced service levels or increased costs.

Participation in the pilot program shall be voluntary for each entity, subject to approval by the commissioner and the chair.

c. Any entity selected to participate in the pilot program established pursuant to this section shall enable employees to work a staggered four-day workweek schedule to ensure the participating entity has staffing for each day of a five-day workweek. Each employee participating in the four-day workweek pilot program shall remain eligible to participate in telework.

d. If such State employees for whom a four-day workweek will be implemented under this section are in a bargaining unit, before implementation, the employer and the bargaining unit shall, for the purposes of the duration of the pilot program:

(1) negotiate the transition of the employees in the bargaining unit to a four-day workweek; and

(2) complete a signed agreement that establishes the requirements of the four-day workweek pilot program for employees in the bargaining unit.

Nothing in this section shall be construed to supersede or impair any existing collective bargaining agreement.

e. Any employee who transitions to a four-day workweek pursuant to this section shall not receive a reduction or increase in pay, status, or benefits; however, cost of living adjustments shall be permitted.

f. The pilot program shall be implemented in a manner that does not result in a net increase in personnel costs, including overtime, as determined by the State Treasurer.

g. Each participating entity shall maintain existing or greater levels of service delivery and operational performance during the pilot program.

h. Each entity selected to participate in the program shall conduct periodic surveys of employees to measure any changes in employee satisfaction, including, but not limited to stress, overall wellbeing, commute times, and financial impacts due to the schedule change. Each entity shall establish a data baseline by conducting an employee survey prior to the start of the four-day workweek pilot program. Thereafter, every six months that the pilot program is in effect, each entity shall conduct an employee survey. Within 30 days of completing the survey, each entity shall provide the results of the survey and any relevant data metrics pursuant to subsection i. of this section to the commissioner and the chair.

i. Every 12 months while the pilot program is in effect, and within 90 days of its conclusion, the commissioner and the chair shall report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the implementation of the four-day workweek pilot program established pursuant to this section. The reports shall include, but not be limited to:

(1) the status of the implementation of the pilot program;

(2) the results of employee surveys before and during the pilot program;

(3) any changes in the number and percentage of leave days used before and during the pilot program, including, but not limited to, administrative, compensatory, vacation, and sick;

(4) whether overtime has increased, decreased, or remained stable;

(5) changes in productivity levels within participating entities;

(6) service response times and delivery outcomes;

(7) customer or constituent satisfaction, where applicable;

(8) any other metrics deemed relevant and appropriate by the commissioner and the chair; and

(9) any interim and final recommendations about whether the four-day workweek pilot program should be continued, expanded, or made permanent.

3. This act shall take effect immediately.

STATEMENT

This bill establishes a four-day workweek pilot program for certain State employees in the executive branch.

The Commissioner of the Department of Labor and Workforce Development, in conjunction with the Chair of the Civil Service Commission, will establish a voluntary, four-day workweek pilot program for certain State employees to study the benefits and impacts of the revised work schedule over a span of two years. Employees will work a staggered four-day workweek schedule. Participating employees will maintain their pay, benefits, and status. Employees in a bargaining unit are eligible to participate provided there is a signed agreement between the employer and the bargaining unit.

The pilot program will be implemented in a manner that does not result in a net increase in personnel costs or a reduction in service delivery and operational performance. The commissioner, in consultation with the chair, may suspend or terminate participation for any entity if the pilot program results in reduced service levels or increased costs.

Each entity participating in the pilot program will conduct employee surveys that will measure stress, overall wellbeing, commute times, and financial impacts due to the revised workweek. The commissioner and the chair will report to the Governor and the Legislature on the results of the employee surveys, as well as other metrics, including, but not limited to, as appropriate, any changes in the number and percentage of administrative, compensatory, vacation, and sick leave used, any changes in the amount of overtime logged, changes in productivity levels, response times and delivery outcomes, customer or constituent satisfaction, and any other metrics deemed appropriate by the commissioner and the chair. The report will also include interim and final recommendations regarding whether the pilot program should continue, expand, or be made permanent.