California's Labor Commissioner has imposed a $5.902 million fine on Amazon.com Services, LLC, citing the e-commerce giant's failure to comply with the Warehouse Quotas law at its facilities in two counties.
The Warehouse Quotas law, enacted as Assembly Bill 701 in 2021 and effective since January 1, 2022, is designed to protect workers in the state by prohibiting covert work quotas that could impede meal, rest, and bathroom breaks, as well as adherence to safety standards.
According to the California Department of Industrial Relations (DIR), Amazon was cited for violating the law that obligates warehouse employers to inform employees in writing about any work quotas they must meet. This notice should include the number of tasks to be completed per hour and any potential disciplinary actions for failing to meet the quota.
Amazon reportedly did not issue written notices regarding quotas at its warehouses in Riverside and San Bernardino Counties and contended that a quota system was unnecessary due to their use of a peer-to-peer evaluation system.
The Labor Commissioner's Office initiated its inspection in September 2022 and discovered 59,017 violations at the Moreno Valley and Redlands warehouses from October 20, 2023, to March 9, 2024. The penalties were levied under Labor Code 2699(f), which stipulates a $100 fine for each violation.
The Labor Commissioner clarified that the law defines a quota as work that must be performed at a specific speed, under threat of discipline. The law also restricts quotas that obstruct compliance with meal or rest periods, use of bathroom facilities, or occupational health and safety regulations.
A quota is deemed unlawful if it is not disclosed to workers or impedes them from exercising their statutory rights.
Labor Commissioner Lilia Garcia-Brower remarked, "The peer-to-peer system that Amazon was using in these two warehouses epitomizes the kind of practices the Warehouse Quotas law aims to eliminate. Hidden quotas subject workers to elevated pressure to work faster, which can escalate injury rates and induce other violations by compelling workers to forgo breaks."
