This resolve establishes the Four-day Workweek Pilot Project, administered by the Department of Labor, to promote, incentivize and support the use of a 4-day workweek by qualifying employers and to study the benefits and effects of a 4-day workweek on participating employees and employers. The pilot project is open to all private or public employers that have at least 15 employees, based on a selection process conducted by the department that ensures participation, as far as practicable, of qualifying employers of diverse size, occupation, industry sector and geographical location; qualifying employers that have both employees who are exempt from and who are subject to the federal Fair Labor Standards Act of 1938; and qualifying employers that are veteran-owned, women- owned and minority-owned businesses and businesses owned by individuals with disabilities. The resolve specifies that at least 15 employees of a participating employer must participate in the pilot project. Those employees who participate must receive a meaningful reduction in hours worked per week without any loss of pay, employment status or benefits. The duration of the pilot project must be at least 2 years and no more than 4 years, as determined by the department. On a regular basis, a participating employer is required to provide the department access to the employer's data and to the employer's participating employees, including through interviews and surveys, so that the department can determine the efficacy and effect of transitioning to a 4-day workweek. Participating employees may opt out of the interviews and surveys and any data gathered from employees must be anonymized. The resolve establishes a tax credit for eligible employers participating in the pilot project. A participating employer that is certified as eligible, except for a public employer, is entitled to credit against income taxes owed by that employer in an amount determined by the department and the State Tax Assessor based on criteria such as a fixed dollar amount for each participating employer or a dollar amount that assists in offsetting a participating employer's costs to hire new employees due to the employer's participation in the pilot project. Based on the information gathered, for the duration of the pilot project, the department is required to annually report to the joint standing committees of the Legislature having jurisdiction over appropriations and financial affairs, taxation matters, labor matters and economic and community development matters on the progress of and participation levels in the pilot project and submit a final report that details the economic and social effect of a
4-day workweek on the participating employers; the effect of a 4-day workweek on the well-being and work life of participating employees; and any findings or recommendations based on the research conducted on a 4-day workweek. The State Tax Assessor is also required to submit an annual report on the tax credit.