A four-day work week is a schedule where employees work four days instead of five. It comes in two very different forms, 40 hours in four longer days or fewer total hours, and the overtime rules treat them differently.
In shortA four-day work week is a schedule in which full-time employees work four days a week. Employers use two models. In the compressed model, people work the same 40 hours in four 10-hour days, often called 4/10. In the reduced-hours model, people work about 32 hours in four 8-hour days, usually for the same or nearly the same pay. Under the federal Fair Labor Standards Act, overtime is based on hours in the workweek, not hours in a day. A non-exempt employee who works four 10-hour days has worked 40 hours and is owed no federal overtime. State law can change that. California Labor Code section 510 requires overtime for work over eight hours in one workday, at no less than one and a half times the regular rate, unless the employer has adopted an alternative workweek schedule under the procedure in section 511. A few other states also have daily overtime rules. In the reduced-hours model, keeping weekly pay the same for fewer hours raises an hourly employee’s regular rate, which makes any overtime hour more expensive. Exempt employees on a four-day week must still receive a salary that meets the exempt salary level.
Two models compared
Compressed vs reduced-hours four-day week
Compressed 4/10
Reduced hours 4/8
Weekly hours
40
About 32
Federal overtime
None if hours stay at 40
None unless a week goes over 40
States with daily overtime
Overtime after 8 hours each day unless an exception applies
Usually no daily overtime at 8 hours a day
Pay for hourly staff
Unchanged
Depends on the policy. Same pay for fewer hours raises the hourly rate
The same 40 hours pay $88 more in California without an alternative workweek schedule.
Worked example: the same 4/10 schedule in two states
$880 in Texas, $968 in California
A service company with technicians in Texas and California moves both teams to four 10-hour days. A technician earns $22 an hour.
In Texas, federal rules apply. The technician works 40 hours in the week, so there is no overtime. Weekly pay is 40 x $22 = $880.
In California, without an alternative workweek schedule, the 2 hours after the eighth hour on each day are overtime. Over four days that is 8 overtime hours. Pay is 32 x $22 = $704 plus 8 x $33 = $264, a total of $968, which is $88 more each week for the same hours. The company either budgets for the daily overtime or goes through the alternative workweek procedure before the change. Running both teams on one schedule with one rule set would have underpaid the California technicians.
Mistakes that are specific to a four-day work week
Assuming 10-hour days are always overtime free. That is true federally, not in every state.
Switching a California team to 4/10 without the alternative workweek procedure.
Moving to 32 hours at the same pay without recalculating the regular rate for overtime.
Cutting an exempt employee’s salary below the exempt salary level when hours go down.
Leaving the fifth day uncovered because the schedule was not planned around customer demand.
Piloting a four-day week
Choose the model, compressed 4/10 or reduced-hours 4/8, and say which one in writing.
Check daily overtime rules in every state where you have employees.
Decide how coverage works on the fifth day, such as two groups with different days off.
Set rules for holidays and PTO, such as 10 hours of PTO for a 10-hour day.
Run it for three months and measure output, overtime, absences and customer service before deciding.
Ten-hour days are tiring for physical work. Watch injury and error rates in the last two hours of the shift during the pilot.
Second example: the reduced-hours model and overtime
A customer support team moves from 40 hours at $22 an hour to a 32-hour week with the same $880 of weekly pay. The agents are non-exempt.
Their regular rate is now $880 / 32 = $27.50 an hour, so an overtime hour costs 1.5 x $27.50 = $41.25 instead of $33. Any hour over 40 in a busy week costs $41.25. The company plans busy weeks around this rather than discovering it on payday.
Run one payroll on paper firstBefore switching, take last month’s real hours and rerun them as if the new schedule had applied, state by state. The difference in overtime is the number to put in front of whoever approves the change.
Questions people ask
Do you get overtime on a four-day work week?
Under federal law, not if the week stays at 40 hours. In states with daily overtime, such as California, hours over 8 in a day can be overtime unless an exception applies.
Is a four-day work week 32 or 40 hours?
Either. A compressed four-day week is usually 40 hours, and a reduced-hours four-day week is usually about 32 hours.
Is a four-day work week legal?
Yes. Employers can set the schedule, but they have to follow federal and state overtime rules for it.
Do salaried employees get paid less on a four-day week?
Only if the employer changes their salary. Exempt employees must still be paid at least the exempt salary level.
How do holidays work on a four-day week?
The policy decides. Many employers pay a holiday at the length of the scheduled day, such as 10 hours on a 4/10 schedule, or give another day off.
How should PTO work on a 4/10 schedule?
Most policies deduct the hours of the scheduled day, so a day off on a 10-hour day uses 10 hours of PTO.
Disclaimer: This explanation of four-day work week is general information, not legal, payroll or tax advice; rules differ by state and city and change over time, and the examples are fictional.
