Amazon Fined $6M for Violating California Warehouse Quota Law

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US-California’s Labor Commissioner’s Office has imposed a fine of nearly $6 million on Amazon for failing to comply with the state’s Warehouse Quotas law at two of its distribution centers in Moreno Valley and Redlands. The law, enacted in 2021, is designed to ensure that warehouse employers disclose productivity quotas to employees and maintain safe working conditions.

An investigation revealed that Amazon had committed 59,017 violations of the law between October 2023 and March 2024. The violations primarily involved the company’s failure to provide written notice of the quotas to its employees. Under the Warehouse Quotas law, employers must inform workers of the number of tasks they are expected to complete per hour and any potential disciplinary actions for not meeting these quotas.

The law also aims to protect employees from unsafe working conditions by prohibiting quotas that prevent them from taking state-mandated meal and rest breaks or using bathroom facilities. Despite Amazon’s claim that it uses a peer-to-peer evaluation system instead of fixed quotas, the Labor Commissioner found that this system effectively imposed performance expectations akin to quotas.

The enforcement action underscores the state’s commitment to safeguarding worker rights and ensuring transparency in warehouse operations. The Labor Commissioner’s Office emphasized that undisclosed quotas increase pressure on workers to perform at unsafe speeds, leading to higher injury rates and other violations, such as skipped breaks.

Amazon has faced ongoing scrutiny regarding its treatment of warehouse employees, particularly concerning the high pace of work and associated injury risks. The company has been cited multiple times by various regulatory bodies for safety violations. Despite these citations, Amazon maintains that it does not use fixed quotas and evaluates individual performance based on multiple indicators over time. The company has stated its intention to appeal the latest fines, arguing that its practices are in compliance with the law and that it is committed to improving workplace safety.

Recent legislative trends reflect a broader concern for warehouse worker welfare, with similar laws being passed in New York, Washington, and Minnesota. Additionally, a federal bill aimed at regulating warehouse productivity quotas was introduced last month.

In response to the ongoing criticisms, Amazon has announced plans to invest more than $750 million in safety initiatives this year, asserting that its injury rates have improved. The company continues to defend its safety record and practices, emphasizing its commitment to creating a safe and fair work environment for its employees.

The California Labor Commissioner’s Office remains vigilant in its enforcement of labor laws, ensuring that workers are informed of their rights and that employers adhere to regulations designed to protect their health and safety.

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