Sen. Rick Bennett (R-Oxford) has sponsored a bill creating a pilot project to “promote, incentivize and support” the use of a four-day workweek by certain Maine businesses.
This program would also aim to study the “benefits and effects” of a four-day workweek on the participating employers and employees.
Although there are a variety of ways that a four-day workweek might be implemented, this bill requires that employees receive a “meaningful reduction in hours worked per week without any loss of pay, employment status or benefits.”
As LD 1865 is currently written, the pilot project would need to begin no later than January 1, 2027 and last for between two and four years.
Participating employers would also be eligible to receive a tax credit for the duration of the pilot project.
In order to qualify, employers would need to participate in the program for at least one year, maintain compliance with their proposal, and submit a report to the Maine Department of Labor (MDOL) detailing their transition to a four-day workweek.
The value of this tax credit would be determined at a later date in consultation with the State Tax Assessor.
In calculating this, one or more of the following would be considered: (1) a fixed dollar amount for each participating employer, (2) a fixed dollar amount for each participating employee, (3) a percentage of the wages paid to each participating employee, or (4) a dollar amount that “assists in offsetting a participating employer’s costs to hire new employees” due to their participation in the pilot project.
This pilot program would be open to employers with at least 15 employees, and participants would be selected by the MDOL designed to ensure that various industries, geographical locations, and business sizes are represented.
Employees of participating businesses would have the option of the interviews and surveys conducted in connection with this program. Any data gathered on employees would be required to be anonymized.
As part of this program, the MDOL would be required to submit an annual report detailing their findings to the appropriate legislative committees alongside any relevant recommendations. The State Tax Assessor would also need to submit a report concerning the tax credit associated with this program.
A public hearing for LD 1865 has been scheduled for Thursday, May 8 at 12:30pm in Room 127 of the State House.
Testimony may also be submitted online at www.mainelegislature.org/testimony.
