Pennsylvania HB 884: An Act 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.

Bill Text

PRINTER'S NO. 922
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 884
Session of
2025
INTRODUCED BY MADSEN, PIELLI, SIEGEL, HOWARD, KINKEAD, HILL-
EVANS, KHAN, FLEMING, FIEDLER, GREEN AND WAXMAN,
MARCH 11, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 11, 2025
AN ACT
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.
TABLE OF CONTENTS
Chapter 1. General Provisions
Section 101. Short title.
Section 102. Definitions.
Chapter 3. Four-Day Workweek Pilot Program and Tax Credit
Section 301. Purpose.
Section 302. Program and administration.
Section 303. Application.
Section 304. Certificate of completion.
Section 305. Reports.
Chapter 5. Miscellaneous Provisions
Section 501. Construction.
Section 502. Expiration.
Section 503. Effective date.
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The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
GENERAL PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Four-Day
Workweek Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Labor and Industry of the
Commonwealth.
"Governmental unit." The following:
(1) The Commonwealth.
(2) A county, municipal corporation or other political
subdivision of the Commonwealth.
(3) A unit of the State government or of a political
subdivision.
"Program." The Four-Day Workweek Pilot Program established
under section 302.
"Qualifying employer." An employer that enters into an
agreement to participate in the program under section 303.
CHAPTER 3
FOUR-DAY WORKWEEK PILOT PROGRAM AND TAX CREDIT
Section 301. Purpose.
The purpose of the program is to promote, incentivize and
support the study of the use of a four-day workweek by private
and public employers in this Commonwealth.
Section 302. Program and administration.
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(a) Establishment.--The Four-Day Workweek Pilot Program is
established in the department.
(b) Duties of department.--The department shall:
(1) Coordinate with the Department of Revenue to
administer the program, including the tax credit authorized
under section 304.
(2) Encourage governmental units to institute a four-day
workweek.
(3) Study and gather information on the impact of the
program on qualifying employers and governmental units.
(4) Conduct and promote research on four-day workweeks
that exist outside the program, including four-day workweeks
established internationally.
(5) Facilitate public discussion with qualifying
employers and governmental units that have instituted a four-
day workweek.
(c) Information required.--A qualified employer or
governmental unit that institutes a four-day workweek shall
provide any information requested by the department for the
purpose of the department complying with subsection (b)(3).
Section 303. Application.
(a) Application.--An employer may apply to participate in
the program with the department on a form provided by the
department.
(b) Contents of application.--The application shall include:
(1) A proposal to transition the applicant's workforce
or a division of the applicant's workforce from a five-day
workweek to a four-day workweek, which shall:
(i) Apply to at least 30 employees.
(ii) Affirm the applicant's commitment to the
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program requirements and agree to submit any required
surveys or reports as requested by the department.
(2) Any other information required by the department.
(c) Agreement.--The department may approve an application
for participation in the program if the applicant enters an
agreement that:
(1) Provides that an employee transitioning to a four-
day workweek will not receive a reduction in pay or benefits.
(2) Allows the department to research the impact of
transitioning to a four-day workweek through employee
surveys, interviews and other information gathering.
Section 304. Certificate of completion.
(a) Department duties and restrictions.--
(1) Before issuing a certificate for completion of the
program, the department shall confirm that the qualifying
employer maintained compliance with its proposal to
participate in the program.
(2) The department shall determine the amount of the tax
credit approved for each qualifying employer receiving a
certificate. The amount determined under this paragraph shall
be stated on a certificate issued under this section.
(3) The department shall determine the amount of the tax
credit stated on a certificate through the use of:
(i) a fixed dollar amount for each qualifying
employer, not exceeding $250,000; or
(ii) a $5,000 tax credit