Warehouse distribution centers should prepare for increased regulation over their use of employee production quotas.
Many employers use quotas to monitor employee performance and set minimum standards for productivity. The use of these quotas, however, has come under increased scrutiny from legislators.
In 2021, California enacted first-of-its-kind legislation over how certain employers may use workplace productivity data (A.B. 701). New York followed in 2022 with the Warehouse Worker Protection Act. The New York law, which a union helped write, goes into effect in June 2023. Washington passed a similar law this legislative session (and delivered it to the governor for signature); while Connecticut held a hearing on its own bill in March 2023.
Although the laws or pending bills vary by state, there are common themes throughout the legislation. These laws are focused specifically on large distribution centers — California and New York’s laws apply only to employers with at least 100 employees at a single distribution center or at least 1,000 employees within the state. Non-distribution centers and smaller employers are not covered by the California and New York laws.
Further, covered employers are generally required to provide a written notice of the quota to employees upon hire or within 30 days of the law’s effective date. That notice must describe any applicable quotas and explain what disciplinary actions might result if an employee does not meet the...
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