S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5454
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2025
                                ___________
 
 Introduced  by M. of A. FORREST -- read once and referred to the Commit-
   tee on Labor
 
 AN ACT to amend the labor law, in relation to  establishing  a  four-day
   work week pilot program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known and may be cited as  the  "four-day
 reduced  employment  and wellness for time improvement and managed effi-
 ciency (FREE TIME) act".
   § 2. The labor law is amended by adding a new section 171 to  read  as
 follows:
   §  171. NEW YORK SMART WORK WEEK PILOT PROGRAM. 1. NOTWITHSTANDING ANY
 OTHER LAW TO THE CONTRARY, THE DEPARTMENT SHALL ESTABLISH THE  NEW  YORK
 SMART  WORK  WEEK  PILOT PROGRAM TO PROMOTE, INCENTIVIZE AND SUPPORT THE
 USE OF A FOUR-DAY WORK WEEK BY QUALIFYING EMPLOYERS  AND  TO  STUDY  THE
 BENEFITS  AND IMPACTS OF SUCH WORK ARRANGEMENTS ON PARTICIPATING EMPLOY-
 EES AND EMPLOYERS.
   2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
 THE FOLLOWING MEANINGS, UNLESS THE CONTEXT CLEARLY REQUIRES OTHERWISE:
   A. "FOUR-DAY WORK WEEK" SHALL MEAN A SITUATION WHERE EMPLOYEES RECEIVE
 A  MEANINGFUL  REDUCTION  IN  ACTUAL WORK HOURS WITHOUT ANY REDUCTION IN
 OVERALL PAY.
   B. "QUALIFYING EMPLOYER" SHALL MEAN AN EMPLOYER OPERATING IN THE STATE
 THAT ENTERS AN AGREEMENT TO PARTICIPATE IN THE NEW YORK SMART WORK  WEEK
 PILOT PROGRAM PURSUANT TO THIS SECTION.
   3.  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE DEPART-
 MENT SHALL BEGIN ACCEPTING APPLICATIONS FROM EMPLOYERS TO PARTICIPATE IN
 THE PILOT PROGRAM.  THE DEPARTMENT SHALL PUBLICIZE AND PROMOTE  APPLICA-
 TION  MATERIALS  THROUGHOUT  THE STATE AND ONLINE TO MAKE APPLICATION TO
 THE PILOT PROGRAM ACCESSIBLE TO ALL EMPLOYERS IN THE STATE. IN  ADDITION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07370-01-5
 A. 5454                             2
              

 
 TO  ANY  OTHER INFORMATION REQUIRED BY THE DEPARTMENT, SUCH APPLICATIONS
 BY QUALIFYING EMPLOYERS SHALL INCLUDE:
   A. A DETAILED PROPOSAL TO ESTABLISH AND IMPLEMENT A FOUR-DAY WORK WEEK
 FOR  THE QUALIFYING EMPLOYER'S WORKFORCE OR A DIVISION OF THE QUALIFYING
 EMPLOYER'S WORKFORCE;
   B. A DETAILED PROPOSAL TO TRANSITION THE QUALIFYING  EMPLOYER'S  WORK-
 FORCE  OR A DIVISION OF THE QUALIFYING EMPLOYER'S WORKFORCE FROM A FIVE-
 DAY WORK WEEK TO A FOUR-DAY WORK WEEK. SUCH PROPOSAL SHALL:
   (I) APPLY TO AT LEAST THIRTY EMPLOYEES; AND
   (II) AFFIRM  THE  QUALIFYING  EMPLOYER'S  COMMITMENT  TO  THE  PROGRAM
 REQUIREMENTS  AND  AGREE  TO  SUBMIT  ANY REQUIRED SURVEYS OR REPORTS AS
 REQUESTED BY THE DEPARTMENT; AND
   C. ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
   4. BASED ON THE  INFORMATION  PROVIDED  IN  THE  APPLICATION  REQUIRED
 PURSUANT  TO  SUBDIVISION  THREE  OF  THIS SECTION, THE DEPARTMENT SHALL
 SELECT QUALIFYING EMPLOYERS FROM THE APPLICANT POOL  TO  PARTICIPATE  IN
 THE  PILOT  PROGRAM.  THE  DEPARTMENT  SHALL MAKE EVERY EFFORT TO SELECT
 QUALIFYING EMPLOYERS OF DIVERSE SIZES, OCCUPATIONS, INDUSTRY SECTORS AND
 GEOGRAPHICAL LOCATIONS TO  PARTICIPATE  IN  THE  PILOT  PROGRAM  AND  TO
 INCLUDE  VETERAN-,  WOMEN-  AND MINORITY-OWNED BUSINESSES AND BUSINESSES
 OWNED BY PERSONS WITH DISABILITIES. EMPLOYERS IN THE PUBLIC  SECTOR  MAY
 PARTICIPATE IN THE PILOT PROGRAM BUT SHALL NOT BE ELIGIBLE FOR TAX CRED-
 ITS PURSUANT TO SUBDIVISION NINE OF THIS SECTION.
   5.  UPON  SELECTION  TO  PARTICIPATE  IN THE PILOT PROGRAM, QUALIFYING
 EMPLOYERS SHALL ENTER INTO AN AGREEMENT WITH  THE  DEPARTMENT  PROVIDING
 THAT:
   A. THE QUALIFYING EMPLOYER SHALL DEVELOP AND IMPLEMENT A PLAN TO TRAN-
 SITION  ITS DESIGNATED EMPLOYEES, WHICH SHALL BE NO LESS THAN THIRTY, TO
 A FOUR-DAY WORK WEEK;
   B. EMPLOYEES OF A QUALIFYING EMPLOYER THAT TRANSITION  TO  A  FOUR-DAY
 WORK WEEK SHALL NOT RECEIVE A REDUCTION IN OVERALL PAY, STATUS, OR BENE-
 FITS; AND
   C. THE DEPARTMENT SHALL STUDY AND EVALUATE THE IMPACT OF TRANSITIONING
 TO  A  FOUR-DAY  WORK WEEK THROUGH GATHERING DATA RELATING TO QUALIFYING
 EMPLOYERS AND DESIGNATED  EMPLOYEES,  INCLUDING,  BUT  NOT  LIMITED  TO,
 EMPLOYEE SURVEYS, INTERVIEWS, AND ECONOMIC DATA.
   6.  QUALIFYING  EMPLOYERS SHALL INFORM THEIR EMPLOYEES OF SUCH EMPLOY-
 ER'S PARTICIPATION IN THE PILOT PROGRAM AND SHALL ALLOW EMPLOYEES TO OPT
 OUT OF PARTICIPATION IN THE  PILOT  PROGRAM.  EMPLOYEES  WHO  CHOOSE  TO
 PARTICIPATE  IN  THE  PILOT  PROGRAM  SHALL  BE  PERMITTED TO OPT OUT OF
 EMPLOYEE INTERVIEWS, SURVEYS, AND ANY OTHER INFORMATION GATHERING  METH-
 ODS.  QUALIFYING  EMPLOYERS  SHALL  NOTIFY THEIR PARTICIPATING EMPLOYEES
 THAT COLLECTION OF EMPLOYEE DATA FOR THE PURPOSES OF THE  PILOT  PROGRAM
 SHALL BE ANONYMIZED.
   7.  THE DEPARTMENT SHALL RESEARCH AND COLLECT DATA ON AN ONGOING BASIS
 DURING THE ADMINISTRATION OF THE PILOT PROGRAM. SUCH RESEARCH  AND  DATA
 SHALL  INCLUDE,  BUT NOT BE LIMITED TO: EMPLOYEE SURVEYS TO BE CONDUCTED
 AT THE START, MIDPOINT, AND END OF THE PILOT  PROGRAM;  EMPLOYEE  INTER-
 VIEWS  AT  THE  START  AND END OF THE PILOT PROGRAM; INTERVIEWS WITH THE
 PARTICIPATING EMPLOYER, OR THE EMPLOYER'S DESIGNEE, AT THE START AND END
 OF THE PILOT PROGRAM, AND NO LATER THAN DECEMBER  THIRTY-FIRST  OF  EACH
 YEAR FOR THE DURATION OF THE PILOT PROGRAM; AND ECONOMIC AND ADMINISTRA-
 TIVE DATA FROM PARTICIPATING EMPLOYERS ON A MONTHLY BASIS.
   8.  THE  PILOT PROGRAM SHALL HAVE A TOTAL DURATION OF NO LESS THAN TWO
 YEARS. ANNUALLY, NOT LATER THAN DECEMBER THIRTY-FIRST FOR  THE  DURATION
 OF  THE  PILOT  PROGRAM,  THE  DEPARTMENT  SHALL PUBLISH A REPORT ON THE
 A. 5454                             3
 
 PROGRESS OF THE PILOT PROGRAM ON THE  DEPARTMENT'S  WEBSITE  AND  SUBMIT
 SUCH  REPORT  TO  THE  GOVERNOR,  THE  ASSEMBLY  AND  THE  SENATE.  UPON
 COMPLETION OF THE PILOT PROGRAM, THE DEPARTMENT SHALL  PUBLISH  A  FINAL
 REPORT  ON THE DEPARTMENT'S WEBSITE AND SUBMIT SUCH REPORT TO THE GOVER-
 NOR, THE ASSEMBLY, AND THE SENATE. THE FINAL REPORT UPON THE  COMPLETION
 OF  THE  PILOT  PROGRAM  SHALL INCLUDE, BUT NOT BE LIMITED TO: THE TOTAL
 NUMBER OF QUALIFYING EMPLOYERS PARTICIPATING IN THE PILOT  PROGRAM;  THE
 SIZE,  OCCUPATION, INDUSTRY SECTOR AND GEOGRAPHICAL LOCATION OF QUALIFY-
 ING EMPLOYERS PARTICIPATING IN THE PILOT PROGRAM;  DEMOGRAPHIC  INFORMA-
 TION  OF  PARTICIPATING  EMPLOYEES,  INCLUDING, BUT NOT LIMITED TO, AGE,
 GENDER AND RACE; THE ECONOMIC AND SOCIAL IMPACT OF A FOUR-DAY WORK  WEEK
 ON  THE  QUALIFYING  EMPLOYERS  PARTICIPATING  IN THE PILOT PROGRAM; THE
 IMPACT OF A FOUR-DAY WORK WEEK  ON  THE  WELL-BEING  AND  WORK  LIFE  OF
 PARTICIPATING  EMPLOYEES;  AND  ANY FINDINGS OR RECOMMENDATIONS BASED ON
 RESEARCH CONDUCTED ON FOUR-DAY WORK WEEKS.
   9. A. NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW TO  THE  CONTRARY,  A
 QUALIFYING  EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX LIABILITY
 IMPOSED BY ARTICLE TWENTY-TWO OF THE TAX LAW OR  THE  EXCISE  DUE  UNDER
 ARTICLE NINE OF THE TAX LAW, AS APPLICABLE, FOR PARTICIPATION IN THE NEW
 YORK  SMART WORK WEEK PILOT PROGRAM; PROVIDED, HOWEVER, THAT AN EMPLOYER
 IN THE PUBLIC SECTOR SHALL NOT BE ELIGIBLE FOR SUCH CREDIT. THIS  CREDIT
 SHALL  TERMINATE  AT  THE  END  OF  THE  TAXABLE YEAR IN WHICH THE PILOT
 PROGRAM CONCLUDES.
   B. THE COMMISSIONER, IN CONSULTATION WITH THE DEPARTMENT  OF  TAXATION
 AND  FINANCE, SHALL PROMULGATE RULES AND REGULATIONS ESTABLISHING CRITE-
 RIA AND PROCEDURE FOR:
   (I) AN APPLICATION PROCESS FOR THE CREDIT; AND
   (II) DETERMINING THE AMOUNT OF CREDIT TO BE ISSUED  PURSUANT  TO  THIS
 SUBDIVISION.
   C.  TO BE ELIGIBLE FOR A CREDIT PURSUANT TO THIS SUBDIVISION, A QUALI-
 FYING EMPLOYER SHALL HAVE:
   (I) PARTICIPATED IN THE PILOT PROGRAM FOR NO LESS THAN ONE YEAR; AND
   (II) SUBMITTED A REPORT TO THE  DEPARTMENT  DETAILING  THE  QUALIFYING
 EMPLOYER'S TRANSITION TO A FOUR-DAY WORK WEEK, INCLUDING DATA COLLECTION
 AS REQUIRED PURSUANT TO SUBDIVISION SEVEN OF THIS SECTION.
   D.  PRIOR  TO THE ISSUANCE OF ANY CREDIT, THE DEPARTMENT SHALL CONFIRM
 THAT THE QUALIFYING EMPLOYER HAS MAINTAINED COMPLIANCE WITH ITS PROPOSAL
 SUBMITTED TO THE  DEPARTMENT  PURSUANT  TO  SUBDIVISION  THREE  OF  THIS
 SECTION.
   E. THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND
 FINANCE, MAY DETERMINE THE AMOUNT TO BE CREDITED TO A QUALIFYING EMPLOY-
 ER THROUGH ONE OR A COMBINATION OF THE FOLLOWING:
   (I)  A  FIXED  DOLLAR AMOUNT, NOT EXCEEDING TWO HUNDRED FIFTY THOUSAND
 DOLLARS,  FOR  EACH  QUALIFYING  EMPLOYER  PARTICIPATING  IN  THE  PILOT
 PROGRAM;
   (II)  A  FIXED DOLLAR AMOUNT, NOT EXCEEDING FIVE THOUSAND DOLLARS, FOR
 EACH EMPLOYEE OF THE QUALIFYING  EMPLOYER  PARTICIPATING  IN  THE  PILOT
 PROGRAM;
   (III)  A PERCENTAGE OF THE WAGES PAID TO EACH EMPLOYEE OF THE QUALIFY-
 ING EMPLOYER PARTICIPATING IN THE PILOT PROGRAM; OR
   (IV) A DOLLAR AMOUNT THAT ASSISTS IN OFFSETTING A  QUALIFYING  EMPLOY-
 ER'S  COSTS  TO  HIRE  NEW  EMPLOYEES  DUE  TO THE QUALIFYING EMPLOYER'S
 PARTICIPATION IN THE PILOT PROGRAM.
   F. THE DEPARTMENT OF TAXATION  AND  FINANCE  SHALL  NOT  ISSUE  CREDIT
 AMOUNTS  IN  AN AGGREGATE TOTALING MORE THAN FIFTEEN MILLION DOLLARS PER
 FISCAL YEAR UNDER THIS PROGRAM.
 A. 5454                             4
 
   G. THE DEPARTMENT OF TAXATION AND FINANCE, IN  CONSULTATION  WITH  THE
 COMMISSIONER,  SHALL, ANNUALLY FOR THE DURATION OF THE PILOT PROGRAM AND
 NO LATER THAN MARCH FIRST OF EACH YEAR, FILE A REPORT ON THE TAX CREDIT.
 SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
   (I)  THE TOTAL AMOUNT OF TAX CREDITS CLAIMED PURSUANT TO THIS SUBDIVI-
 SION; AND
   (II) THE NUMBER  OF  APPLICATIONS  AND  THE  NUMBER  OF  PARTICIPATING
 EMPLOYERS.
   § 3. This act shall take effect immediately.