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.

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
 1   Establishing the Four-Day Workweek Pilot Program; providing for
 2      tax credits to qualifying employers; and imposing duties on
 3      the Department of Labor and Industry and the Department of
 4      Revenue.
 5                             TABLE OF CONTENTS
 6   Chapter 1.   General Provisions
 7   Section 101.   Short title.
 8   Section 102.   Definitions.
 9   Chapter 3.   Four-Day Workweek Pilot Program and Tax Credit
10   Section 301.   Purpose.
11   Section 302.   Program and administration.
12   Section 303.   Application.
13   Section 304.   Certificate of completion.
14   Section 305.   Reports.
15   Chapter 5.   Miscellaneous Provisions
16   Section 501.   Construction.
17   Section 502.   Expiration.
18   Section 503.   Effective date.
 1      The General Assembly of the Commonwealth of Pennsylvania
 2   hereby enacts as follows:
 3                                  CHAPTER 1
 4                              GENERAL PROVISIONS
 5   Section 101.    Short title.
 6      This act shall be known and may be cited as the Four-Day
 7   Workweek Act.
 8   Section 102.    Definitions.
 9      The following words and phrases when used in this act shall
10   have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Department."     The Department of Labor and Industry of the
13   Commonwealth.
14      "Governmental unit."     The following:
15          (1)     The Commonwealth.
16          (2)     A county, municipal corporation or other political
17      subdivision of the Commonwealth.
18          (3)     A unit of the State government or of a political
19      subdivision.
20      "Program."    The Four-Day Workweek Pilot Program established
21   under section 302.
22      "Qualifying employer."      An employer that enters into an
23   agreement to participate in the program under section 303.
24                                  CHAPTER 3
25            FOUR-DAY WORKWEEK PILOT PROGRAM AND TAX CREDIT
26   Section 301.    Purpose.
27      The purpose of the program is to promote, incentivize and
28   support the study of the use of a four-day workweek by private
29   and public employers in this Commonwealth.
30   Section 302.    Program and administration.

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 1      (a)   Establishment.--The Four-Day Workweek Pilot Program is
 2   established in the department.
 3      (b)   Duties of department.--The department shall:
 4            (1)   Coordinate with the Department of Revenue to
 5      administer the program, including the tax credit authorized
 6      under section 304.
 7            (2)   Encourage governmental units to institute a four-day
 8      workweek.
 9            (3)   Study and gather information on the impact of the
10      program on qualifying employers and governmental units.
11            (4)   Conduct and promote research on four-day workweeks
12      that exist outside the program, including four-day workweeks
13      established internationally.
14            (5)   Facilitate public discussion with qualifying
15      employers and governmental units that have instituted a four-
16      day workweek.
17      (c)   Information required.--A qualified employer or
18   governmental unit that institutes a four-day workweek shall
19   provide any information requested by the department for the
20   purpose of the department complying with subsection (b)(3).
21   Section 303.     Application.
22      (a)   Application.--An employer may apply to participate in
23   the program with the department on a form provided by the
24   department.
25      (b)   Contents of application.--The application shall include:
26            (1)   A proposal to transition the applicant's workforce
27      or a division of the applicant's workforce from a five-day
28      workweek to a four-day workweek, which shall:
29                  (i)    Apply to at least 30 employees.
30                  (ii)    Affirm the applicant's commitment to the

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 1            program requirements and agree to submit any required
 2            surveys or reports as requested by the department.
 3            (2)   Any other information required by the department.
 4      (c)   Agreement.--The department may approve an application
 5   for participation in the program if the applicant enters an
 6   agreement that:
 7            (1)   Provides that an employee transitioning to a four-
 8      day workweek will not receive a reduction in pay or benefits.
 9            (2)   Allows the department to research the impact of
10      transitioning to a four-day workweek through employee
11      surveys, interviews and other information gathering.
12   Section 304.     Certificate of completion.
13      (a)   Department duties and restrictions.--
14            (1)   Before issuing a certificate for completion of the
15      program, the department shall confirm that the qualifying
16      employer maintained compliance with its proposal to
17      participate in the program.
18            (2)   The department shall determine the amount of the tax
19      credit approved for each qualifying employer receiving a
20      certificate. The amount determined under this paragraph shall
21      be stated on a certificate issued under this section.
22            (3)   The department shall determine the amount of the tax
23      credit stated on a certificate through the use of:
24                  (i)    a fixed dollar amount for each qualifying
25            employer, not exceeding $250,000; or
26                  (ii)    a $5,000 tax credit for each employee of the
27            qualifying employer participating in the program.
28            (4)   The department may not issue certificates for credit
29      amounts in the aggregate totaling more than $15,000,000 per
30      fiscal year.

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 1            (5)   If the aggregate amount of tax credit certificates
 2      issued during a fiscal year totals less than the maximum
 3      amount under paragraph (4), any excess amount may be issued
 4      in a subsequent fiscal year.
 5      (b)   Issuance of certificate.--Upon the completion of the
 6   program, the department shall provide a certificate to a
 7   qualifying employer demonstrating that the qualifying employer
 8   successfully completed the program and met the following
 9   requirements:
10            (1)   Participated in the program for at least one year.
11            (2)   Submitted:
12                  (i)   All reports, surveys and other required
13            documentation for the program, including information
14            pertaining to:
15                        (A)   Overall satisfaction with the program.
16                        (B)   Problems with implementation or the
17                  continuation of the program.
18                        (C)   Reasons for discontinuing the program.
19                        (D)   Description of efficiencies produced by the
20                  program.
21                        (E)   Description of any revenue savings that were
22                  a result of the program.
23                        (F)   Comparison of use of leave under the program
24                  and in previous years.
25                        (G)   Likelihood of continuing the program.
26                        (H)   Improvements or decreases in employee
27                  mental, physical and emotional health.
28                        (I)   If employees were more likely to be retained
29                  or if there was an increase in employees leaving as a
30                  result of the program.

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 1                         (J)   Any other information deemed necessary by
 2                  the department.
 3                  (ii)    Proof that the qualifying employer has not
 4            decreased the salaries or the benefits of the employees
 5            who participated in the program.
 6                  (iii)    Any other documentation required by the
 7            department.
 8      (c)     Submission to Department of Revenue.--Upon receipt of
 9   the certificate, a qualifying employer may submit the
10   certificate to the Department of Revenue and claim a credit
11   against the State income tax in the amount stated on the
12   certificate.
13      (d)     Guidelines.--The department shall adopt guidelines that
14   establish criteria and procedures for:
15            (1)   Issuing certificates.
16            (2)   Determining the amount of a tax credit approved for
17      each qualifying employer that was issued a certificate under
18      this section.
19   Section 305.     Reports.
20      (a)     Report on certificates.--On or before January 31 of each
21   year, the department shall submit a report to the General
22   Assembly that identifies each qualified employer that was issued
23   a certificate during the immediately preceding year and the
24   amount of the tax credit stated on each certificate.
25      (b)     Program status report.--On or before December 1 of each
26   year, the department shall submit a report to the Governor and
27   the General Assembly on the status of the program, which shall
28   include:
29            (1)   The number of employers participating in the
30      program.

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 1             (2)   The number of governmental units that have
 2      instituted a four-day workweek.
 3             (3)   The impact of a four-day workweek on the employers
 4      participating in the program and governmental units.
 5             (4)   The status of the tax credit authorized under this
 6      act.
 7             (5)   Any findings or recommendations based on research
 8      conducted on four-day workweeks that exist in and outside the
 9      program.
10      (c)    Publication.--The department shall annually publish on
11   its publicly accessible Internet website:
12             (1)   The reports required under this section.
13             (2)   The details of the qualifying employers' four-day
14      workweek proposals.
15                                    CHAPTER 5
16                           MISCELLANEOUS PROVISIONS
17   Section 501.     Construction.
18      Nothing in this act shall be construed to prevent an employer
19   from increasing an employee's salary or benefits.
20   Section 502.     Expiration.
21      This act shall expire June 28, 2029.
22   Section 503.     Effective date.
23      This act shall take effect July 1, 2026, or immediately,
24   whichever is later.




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