On June 18, 2024, the California Labor Commissioner announced a nearly $6 million citation to a giant warehouse retailer for violating California’s Warehouse Quotas law.
On January 1, 2022, Assembly Bill 701, also known as California’s warehouse quotas law, went into effect. The law requires covered warehouse employers to provide specific written quota information to each of its employees, including the number of tasks to be performed or materials that must be produced or handled within a time period, and any potential adverse employment action that could result from the employee failing to meet that quota. The law does place limits on quotas so as not to interfere with the employees’ ability to take their legally required meal and rest periods, take necessary bathroom breaks, or comply with occupational health and safety laws.
The Labor Commissioner indicated that the employer did not provide the required written quota notices to its employees. The Labor Commissioner’s investigation revealed there were a combined 59,017 violations at two of the employer’s distribution warehouses. Because California Labor Code section 2699(f) provides for a $100 penalty per violation, the Labor Commissioner cited the employer $5,901,700.
Given the substantial risks associated with not complying with California’s warehouse quotas law, covered employers are encouraged to audit their practices associated with their written quota notices. Employers Council members that have questions about this law can contact the California Legal Services team at CAinfo@employerscouncil.org.
Jaimie Graczyk is an attorney for Employers Council.