Amazon is facing a hefty fine of nearly $6 million from the California Labor Commissioner for not properly informing its warehouse workers about their expected work quotas. The $5,901,700 penalty arises from violations at two Amazon facilities in Moreno Valley and Redlands, California, where a total of 59,017 infractions were noted.
This fine is one of the first major enforcements under California’s AB-701 law, which came into effect in January 2022, requiring companies to provide workers with written details of their quotas and the consequences of not meeting these expectations.
What Led to the Creation of the AB-701 Law?
The AB-701 law was enacted as a response to numerous complaints from Amazon workers who reported skipping bathroom breaks and risking injuries to meet demanding quotas.
When signing the bill into law in 2021, Governor Gavin Newsom highlighted the necessity of protecting warehouse workers from “exploitative quotas that violate basic health and safety.” This legislation aims to ensure that warehouse employees are not subjected to undue stress and health risks due to unclear and excessive productivity expectations.
According to Labor Commissioner Lilia García-Brower, Amazon’s non-compliance specifically involved the use of a “peer-to-peer system” instead of clear written notifications. García-Brower criticized this system, stating it is “exactly the kind of system that the Warehouse Quotas law was put in place to prevent.” She elaborated that such undisclosed quotas can significantly increase pressure on workers, leading to faster work paces that may cause more injuries and compel workers to forgo necessary breaks.
Amazon Challenges the Fine
Despite the state’s claims, Amazon has contested the allegations and the resulting fines.
Maureen Lynch Vogel, an Amazon spokesperson, told Engadget that the company disagrees with the labor commissioner’s citations and has appealed the decision. Vogel explained that Amazon does not enforce fixed quotas; instead, “individual performance is evaluated over a long period of time, in relation to how the entire site’s team is performing.”
She added that employees are encouraged to review their performance whenever they wish and can consult with managers if they have difficulty accessing performance information.
This case not only highlights ongoing labor issues within large warehouse operations like Amazon’s but also reflects broader legislative efforts, such as those by State Assembly Representative Lorena Gonzalez, who also spearheaded the AB-5 bill in 2019 to secure better protections for gig workers at companies like Uber and Lyft.
Related News:
Featured Image courtesy of JOHANNES EISELE/AFP via Getty Images