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Bill > LD1865


ME LD1865

ME LD1865
Resolve, to Create a Tax Incentive Pilot Project to Encourage Businesses to Adopt a 4-day Workweek


summary

Introduced
05/01/2025
In Committee
05/22/2025
Crossed Over
04/02/2026
Passed
Dead
04/07/2026

Introduced Session

Potential new amendment
132nd Legislature

Bill Summary

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.

AI Summary

This bill establishes the Four-day Workweek Pilot Project, a program administered by the Department of Labor to explore and incentivize a 4-day workweek across various employers in the state. The pilot project, which will run for 2-4 years starting no later than January 1, 2027, is open to employers with at least 15 employees who can demonstrate a plan to reduce work hours without reducing employee pay or benefits. The department will select participants to ensure diverse representation across business sizes, industries, locations, and ownership types, including veteran-owned, women-owned, and minority-owned businesses. Participating employers must allow the department to collect data through surveys and interviews to evaluate the project's effectiveness, with all employee data being anonymized and participation voluntary. To encourage participation, the bill creates a tax credit for eligible employers, which can be calculated based on factors like a fixed amount per employer or employee, a percentage of wages, or to offset costs of hiring additional staff. The Department of Labor will conduct ongoing research and submit annual reports to legislative committees detailing the economic and social impacts of the 4-day workweek, including effects on employee well-being, employer productivity, and potential use of artificial intelligence. Public sector employers can participate but are not eligible for the tax credit. The goal is to study the potential benefits of a reduced workweek for both employees and businesses.

Committee Categories

Budget and Finance, Housing and Urban Affairs

Sponsors (1)

Last Action

Placed in the Legislative Files. (DEAD) (on 04/07/2026)

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