Senator Bernie Sanders has proposed legislation to lower the federal overtime threshold from 40 hours to 32 hours per week, requiring employers to pay 1.5 times the standard rate for additional hours. Whilst the goal of reducing working hours is sound, the author argues the mandatory approach will likely backfire by creating strong financial incentives for companies to automate, particularly given historically tight labour markets where businesses struggle to find enough workers.

Under Sanders' proposal, a company with 100 employees earning £50,000 annually would face additional annual costs of approximately £133,000 when accounting for base pay increases and employer taxes. For a 50-person business, the total added cost would reach £267,500 per year—a financial burden that would easily justify investing in automation. The author proposes an alternative approach: government tax incentives encouraging employers to offer flexible working, paid time off, and dependent care benefits, recognising that modern workers—especially younger generations—value work-life balance and flexibility as much as additional wages.