In September 2021, Governor Newsom signed Assembly Bill (AB) 701, which regulates the use of quotas at warehouse distribution centers in California.
AB 701 requires employers with large warehouse distribution centers to disclose quotas and pace-of-work standards to each employee upon hire or within 30 days of the law going into effect.
AB 701 went into effect January 1, 2022, and employers must provide notice to covered employees of the quota requirements by January 31, 2022.
California’s Labor Commissioner who is charged with enforcement of AB 701 has published FAQs regarding AB 701.
The following are some of the highlights from the FAQs.
AB 701 covers employers who directly or indirectly control 100 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in California. Employees provided by outside staffing agencies may also be included where the employer controls the terms and conditions of employment for those employees.
A “quota” is defined as “a work standard under which an employee is assigned or required to perform at a specified productivity speed, or perform a quantified number of tasks, or to handle or produce a quantified amount of material, within a defined time period and under which the employee may suffer an adverse employment action if they fail to complete the performance standard.”
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