E-commerce giant Amazon is facing a nearly $6 million fine for failing to provide warehouse workers with the required written documentation of quotas under California law.
The California Department of Industrial Relations stated in a press release on June 18 that Amazon violated the California Warehouse Quotas Law implemented in 2021 at its distribution centers in Moreno Valley and Redlands.
The law mandates warehouse employers to provide workers with written notices detailing the operational quotas they must adhere to, including the expected number of tasks to be completed per hour and the disciplinary actions for falling short. However, Amazon was found to be lacking in providing these written notices.
According to the Office of the Labor Commissioner, over a five-month period from October 20, 2023, to March 9, 2024, these two warehouses collectively violated the law 59,017 times. Each violation incurs a $100 fine, resulting in a total penalty of $6 million.
In response to the ruling, Amazon spokesperson Maureen Lynch Vogel stated in an email to the media giant that the company intends to appeal the decision.
“We disagree with the allegations in the penalty notice and have filed an appeal. In reality, we do not have set operational quotas. At Amazon, individual performance is evaluated over a significant period based on team performance. We encourage employees to monitor their performance and can discuss with managers if they encounter issues while looking up relevant information.”
Amazon announced in March of this year that its operational safety performance has significantly improved over the past few years. The Recordable Incident Rate (RIR) – incidents requiring more than basic first aid treatment, has decreased by 30% over four years.
Furthermore, the Lost Time Incident Rate (LTIR), which refers to injuries necessitating employee time off, has decreased by 60% during the same period. In general warehouse and storage operations, the company has seen a 24% improvement in RIR and a 77% improvement in LTIR.
In 2024, Amazon allocated $750 million for training, resources, projects, and technology to further enhance safety measures.
Amazon informed the Office of the Labor Commissioner that the company does not require an operational quota system, as it employs peer review to assess work performance.
However, the peer review system may potentially violate the California Warehouse Quotas Law as it does not clearly define the number of tasks employees should complete per hour. The law also restricts quotas that would impede compliance with meal or rest breaks, restroom usage, or adherence to occupational health and safety regulations.
Labor Commissioner Lilia Garcia-Brower stated, “Failure to clearly inform workers of quotas or hinder their exercise of these statutory rights may constitute illegality.” She highlighted that Amazon’s peer review system falls into the category of systems that the Warehouse Quotas Law aims to prevent.
Garcia-Brower pointed out that the undisclosed quotas exacerbate pressure on employees to speed up work, potentially leading them to forgo breaks or increase the risk of injuries.
In a statement to the Warehouse Worker Resource Center (WWRC), Amazon Moreno Valley distribution center’s ONT8 facility employee Carrie Stone expressed that the management at Amazon indeed creates pressure to meet the quotas.
“If you don’t scan enough items, you will be recorded. I’ve had this experience because I didn’t meet the quota. They said I was off by 1 point, but I had no idea what the target was.”
According to WWRC data, since September 2023, the California Labor Commissioner’s Office has issued a combined total of $7.8 million in fines to five organizations, including Amazon, for failing to provide workers with written quota explanations.
Following the enactment of the California Warehouse Quotas Law, other states such as Minnesota, New York, Oregon, and Washington have also implemented similar regulations.
Last month, Democratic Senator Edward Markey of Massachusetts introduced the Warehouse Worker Protection Act, which calls for written notice of quotas nationwide.
According to Markey’s press release on June 18, the bill prohibits “hazardous quotas – including those reliant on continuous intrusive monitoring, impeding workers’ restroom breaks and rest periods, violating health and safety regulations, or hindering workers’ exercise of their organizational rights.”
Markey referenced the California Labor Commissioner’s decision to fine Amazon $6 million, emphasizing that his bill aims to protect workers from similar incidents.
The US Chamber of Commerce opposed the bill, calling it “full of bad new ideas.” The organization pointed out that the bill would require employers to allow employee representatives to participate in identifying risks and other issues.
“This will lead unions to determine the design of workspaces to maximize union interests,” the US Chamber of Commerce stated. “The bill will also pave the way for union organizing in warehouses,” potentially depriving employers of their due process rights in certain circumstances.