Kezia Dugdale has called for an outright ban on employees working more than 48 hours a week.
The Scottish Labour leader said ministers should consider removing the opt-out to an EU law that forbids staff from clocking up the long hours.
Business leaders have warned against piling more regulation on firms, adding that removing the opt-out undermines employer and worker choice.
Meanwhile, the Scottish Greens called for more action to bring decommissioning jobs to Dundee.
Ms Dugdale demanded a review of the working week policy as she launched her party’s industrial strategy.
Pointing to the 250,000 Scots working more than 48 hours a week, the plan said “too many people experience long working hours, job monotony, management by stress and over-work”.
Ms Dugdale said the UK and Scottish governments should “consider ending current opt-outs which fail to deliver on our ambition for an inclusive economy”. “This would potentially benefit thousands of workers across the country, in particular under-pressure NHS staff,” she added.
Scottish Conservative shadow economy secretary Dean Lockhart said: “No-one should be forced to work those kinds of hours if they don’t want to or simply can’t.
“However, many people – particularly those running their own businesses – do want to, and will be appalled at the idea of Labour trying to tell them what to do.”
Alison Henderson, from Dundee and Angus Chamber of Commerce, was sceptical of the proposal saying she is in favour of employers and staff being able to choose their working hours.
“We want to see less regulation of business so they have the freedom to operate and manage their workforce,” she said.
But she said it is important that people do not feel they have to work longer hours against their will.
Colin Borland, from the Federation for Small Businesses, said: “It is good to see political parties examining the best way to develop Scotland’s economy, but some of these measures inevitably raise questions about their practical application.”
David Watt, from the Institute of Directors Scotland, said they are against “too much government intervention”.
“The IoD does not support worker exploitation but believes they should have the option to negotiate terms that suit both parties,” he added.
Labour said adopting the measures contained in its strategy could boost the economy by almost £45bn. They include more investment in computer coding as well as strengthening the Scottish Investment Bank.
Ivan McKee, the SNP MSP, said the biggest contribution Labour could make to industry would be to “end their ridiculous support for the Tories’ policy of dragging Scotland and the UK out of the single market”.
Mark Ruskell, for the Scottish Greens, said Labour are following the SNP in being “timid in their approach” to oil and decommissioning, which the Port of Dundee has estimated could bring 5,000 jobs to the city.