Pennsylvania House Bill HB884

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/11/25
• Refer: 3/11/25

Caption

Establishing the Four-Day Workweek Pilot Program; providing for tax credits to qualifying employers; and imposing duties on the Department of Labor and Industry and the Department of Revenue.

Summary

HB884 establishes the Four-Day Workweek Act and creates a pilot program within the Department of Labor and Industry to encourage, study, and promote four-day workweeks for both private employers and governmental units in Pennsylvania. The department would coordinate with the Department of Revenue, gather data on participating employers, facilitate public discussion, and conduct research on four-day workweek models used in and outside the program, including international examples. To participate, an employer must apply with a proposal to transition at least 30 employees or a division of its workforce from a five-day to a four-day schedule and must agree that employees will not receive reduced pay or benefits. After at least one year in the program and compliance with reporting requirements, a qualifying employer may receive a certificate of completion and claim a state income tax credit. The credit may be structured either as a fixed amount up to $250,000 per employer or as $5,000 per participating employee, with total annual credits capped at $15 million. The program expires June 28, 2029, and takes effect July 1, 2026, or immediately if later.

Impact

The bill would add a new temporary pilot program to Pennsylvania law and create a state income tax credit for employers that successfully implement a four-day workweek under program rules. It assigns new administrative duties to the Department of Labor and Industry and the Department of Revenue, including application review, certification, data collection, reporting to the General Assembly and Governor, and public posting of program details. It would not mandate a four-day workweek statewide, but it would create incentives and a formal state framework for employers and governmental units to test reduced workweek schedules while maintaining pay and benefits.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall tone appears supportive and exploratory rather than adversarial. The measure is framed as a pilot and research program, suggesting an interest in evaluating workplace flexibility, productivity, employee well-being, and retention before any broader policy change. The inclusion of tax incentives and reporting requirements indicates an effort to make the proposal practical and data-driven.

Contention

The main policy tensions are likely to center on the cost of the tax credit, the $15 million annual cap, and whether public funds should subsidize a work-schedule experiment. Another likely point of debate is the requirement that participating employees not lose pay or benefits, which may be viewed as protective by supporters but potentially burdensome for employers. There may also be concern about administrative complexity, the minimum 30-employee threshold, and whether the pilot’s findings would be representative enough to justify broader adoption.