Is there a word for when workers raise expectations unsustainably high when they work too hard?
It's a situation I've heard discussed several times. Let's say some factory workers make 300 widgets a week. There's a big product release next week and they need to have 1000 widgets ready. So the workers double down, skip lunch, pull all-nighters and manage to get 1000 widgets made in a week. The bosses now expect the workers to produce 1000 widgets every week.
Is there a name for this phenomenon?
"Making a rod for your own back."
To do something that is likely to cause problems for you in the future.
"People say that if you let your baby sleep in your bed with you for the first few months, you're just making a rod for your own back."
thefreedictionary.com
You can alternatively say "Making a stick for your own back."
This phrase is not exclusive to the circumstances that you have outlined in which one raises another's expectations to one's own detriment, but would certainly be suitable for such an occurence. Indeed, the example quote from thefreedictionary.com does describe such a situation.
This is called setting unrealistic expectations. That's the phrase to search for, it's practically idiomatic. ngram