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Thursday, October 22, 2026

The 12 days of California Labor & Employment Series – Day 11: Beware of Adverse Employment Actions Involving Warehouse Distribution Center Quotas - JD Supra

In the spirit of the season, we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this eleventh day of the holidays, my labor and employment attorney gave to me: eleven pipers piping and AB 701.

Who has seen the holiday movie "Elf"? In the film, Will Ferrell plays Buddy the Elf. When Buddy is working at Santa's Workshop, he is seen building the Etch a Sketch. His supervisor comes over, and Buddy says, "Ming Ming, I'm gonna be a little bit short on today's quota." Buddy informs Ming Ming that he made 85 Etch a Sketches that day and is then told he is 915 pieces off pace. In the next scene, Buddy the Elf is no longer making the Etch a Sketch. Instead, he is checking to see if the Jack in the Box toys work properly. A demotion? An adverse employment action? Perhaps. This is, in essence, what AB 701 addresses.

California is often at the forefront of employee protections, and AB 701 is no different. AB 701 is the first of its kind and is designed to provide additional protections to workers at warehouse fulfillment and distribution centers. Many of these facilities have mandatory quotas that employees must meet or face repercussions. With the pandemic, a massive surge for delivery ensued. Most everyone had groceries, cleaning products, household necessities, entertainment items, and just about anything else delivered to their home. Warehouse distribution centers and fulfillment centers were...



Read Full Story: https://www.jdsupra.com/legalnews/the-12-days-of-california-labor-6012268/