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Marylanders Might Be Getting a 4-Day Workweek

Feb 1, 2023

Lawmakers in Maryland have proposed a new bill incentivizing employers to adopt a four-day workweek. House Bill 181, the Four-Day Workweek Act of 2023, establishes the Four-Day Workweek Pilot Program and Income Tax Credit to study the effects of a four-day workweek for public and private employers.

The new bill would allow qualifying Maryland employers participating in the four-day workweek pilot program for at least one year to claim a credit against their state income tax. The Department of Labor would determine the amount of the tax credit, which would not exceed $750,000, based on factors from the employer.

If enacted, employers could apply to participate in the program by submitting a proposal to transition their workforce from a five-day to a four-day workweek, along with “any other information required by the department.” To participate in the pilot program, an employer must:

  • Transition at least 30 employees to the four-day workweek, with no reduction in their pay or benefits
  • Have had no prior intention of transitioning to a four-day workweek
  • Allow the Maryland Department of Labor to conduct employee interviews and surveys and gather other information to research the impact of a four-day workweek

If passed, the Four-Day Workweek Pilot Program would begin July 1, 2023, and expire at the end of June 30, 2028.

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Donald N. Hoffman

Donald Hoffman is Partner-in-Charge of the firm's Maryland office. His expertise includes accounting, tax planning, business consulting, strategic planning, business succession, buy/sell agreements, and estate planning.

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