A Shorter Work Week Could Look Much Different for Contractors vs. Employees

 

A shortened work week is gaining steam across the world, from Iceland to the US. Though most high profile debate is around standardizing a four-day work week, Bangalore fintech startup Splice wants to try something even more radical for its industry, and the global economy: a three-day work week.

For Splice, the vision for a three-day work week would include salaries at 80% the going market rate, and setting an innovative standard for work-life balance without sacrificing on KPIs and growth. The workforce dynamics of the fintech industry at large bring up some pressing factors that would define success for a shorter work week. Like 2018 reporting showed, at Big Tech leader Google, contract workers outnumbered the directly employed workforce, meaning a substantial shadow workforce lifting tech companies to success while requiring less pay, less benefits, and less direct oversight.

With important distinctions between the 1099 workforce and a salaried employee, how could a standardized three-day workweek, or even four-day workweek, impact employer distinctions between independent contractors and employees? In turn, would this impact how they invest in contract labor vs. traditionally employed labor? Lauren Blair, lawyer with AutoInsuranceEZ.com, joined us to give her take, referencing her 25 years of experience in employment law.

More from Lauren Blair:

The impacts of a shortened workweek are different for employers and workers.

The most significant impact a shortened workweek could have on employers concerns the payment of hourly wages. The Fair Labor Standards Act requires covered employers to pay their employees no less than the federal minimum wage for each hour worked, and overtime pay (typically time and a half) for every hour worked over 40 hours.

So, if an employer shifts from a five-day workweek at 8 hours a day to a four-day workweek at 8 hours a day, the employer could require the four-day employee to work up to 8 additional hours before having to pay overtime pay. On the other hand, if the employer goes from a five-day workweek at 8 hours a day to a four-day workweek at 10 hours a day, then the employee would be entitled to overtime pay for any time worked past the 10th hour of the 4th day.

From the workers’ perspective, the impact of a shortened workweek depends on whether the daily hours increase or decrease. In addition to impacting overtime pay as discussed above, it impacts the quality of life. If an 8-hour a day worker changes from a five-day 40-hour week to a four-day 32-hour week, that could mean more time for the employee to spend with family, taking care of other business, and pursuing personal wellness activities.

If, however, the worker must work 10-hours for four days, then that could cause fatigue and burnout for the worker. Studies have shown that longer workdays increase the risk of drowsy driving and places employees at risk of driving home exhausted and injuring themselves or others.

Bio: Lauren Blair is a lawyer with AutoInsuranceEZ.com. She has over 25 years of experience in employment law.

Follow us on social media for the latest updates in B2B!

Image

Latest

DXpedition
Icom Powers 3Y0K : Ham Radio’s Most Ambitious DXpedition to Remote Bouvet Island Part 1
July 11, 2025

Bouvet Island sits at the edge of the world. It is frozen, uninhabited, and almost impossible to access. Fewer people have set foot there than in space. That level of remoteness is exactly what makes it so valuable to amateur radio operators. The island ranks tenth on ClubLog’s list of Most Wanted DXCC entities,…

Read More
entrepreneurial success
The Hidden Key to Entrepreneurial Success: Build Momentum Through Personal Branding and Authentic Networking
July 10, 2025

What if the biggest pivot of your career started with a conversation?  In this episode of Professional Quotient, host Jason Winningham welcomes Fanny Dunagan, CEO and Content Strategist of PathLynks, LLC. Fanny shares her journey from high-pressure consulting in Singapore to founding her own media and branding company — and why learning to network…

Read More
Q2 2025
RM Q2 2025 Wrap Up
July 9, 2025

Rogue Marketing continues to lead with intention in a space often driven by noise. Q2 2025 reflected a strategic focus on substance, where each initiative supported long-term brand growth. The team transformed internal recognition efforts into enduring brand assets and refined event strategies through immersive, results-driven experiences. Website launches during the quarter balanced visual…

Read More
amateur radios
Hamvention Spotlight: Emergency Preparedness Led PrepHam Paul to Amateur Radios and a Rising Voice in the Field
July 9, 2025

PrepHam Paul (K5VLP) celebrated his first visit to Dayton Hamvention by marking a major channel milestone. He hosted a giveaway of the  IC-2370B mobile radio from Icom to thank viewers for helping him reach 10,000 subscribers. His passion for emergency preparedness, rooted in his experience as an Eagle Scout and later studies in emergency management,…

Read More