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Re:

Why California Cited Amazon Nearly $6 Million Over Alleged Warehouse Quota Violations

California’s Labor Commissioner’s Office cited Amazon $5,901,700 over alleged quota-notice violations at two Inland Empire warehouses. Amazon disputed the allegations and appealed.
From TheFinanceBase Team3 min to read
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California’s Labor Commissioner’s Office announced $5,901,700 in citations against Amazon.com Services, LLC on June 18, 2024, alleging the company failed to give workers written quota notices at two Inland Empire warehouses. Amazon disputed the allegations and said it appealed. The announcement was a citation—not a final ruling on the dispute—and the sources cited here do not establish the appeal’s outcome.

What California alleged

The Labor Commissioner’s Office said its investigation identified 59,017 violations at Amazon distribution warehouses in Moreno Valley, Riverside County, and Redlands, San Bernardino County. The agency’s stated investigation period was October 20, 2023, through March 9, 2024. It assessed $100 per alleged violation under California Labor Code section 2699(f), producing the announced total of $5,901,700. The agency’s June 18, 2024 release says its initial inspection began September 22, 2022; AP reported that the citations were issued in May 2024.

The alleged violation centered on disclosure. The agency said workers had not received written notices describing applicable quotas and potential discipline for failing to meet them. Its release characterized Amazon’s system as peer-to-peer evaluation and said the law looks to the work speed or quantified work required and whether failure can lead to discipline.

Why Amazon challenged the citations

Amazon said it did not have fixed quotas and disagreed with the allegations. As The Associated Press reported, spokesperson Maureen Lynch Vogel said individual performance was evaluated over time in relation to the site team’s performance. She also said employees could review their performance and speak with a manager if they had difficulty finding the information. AP reported that Amazon appealed the citations.

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That disagreement goes to how the system operates and how the law applies to it. The agency viewed the peer-to-peer evaluation system as the kind of quota arrangement AB 701 was intended to address; Amazon said its system was not a fixed quota. The citations themselves do not resolve that dispute. The cited sources do not establish whether the appeal was later upheld, settled, paid, or overturned.

What California’s Warehouse Quotas law requires

California’s Warehouse Quotas law, AB 701, took effect January 1, 2022. The Labor Commissioner’s official Warehouse Quotas FAQ describes coverage for certain warehouse distribution centers and employers that directly or indirectly control at least 100 employees at one center or at least 1,000 employees across one or more centers in California. The FAQ includes specified warehousing, wholesaling, and electronic shopping or mail-order industry categories, with an exemption for farm product warehousing and storage.

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A quota is a required productivity speed or quantified amount of work within a defined period, where failing to meet it may lead to adverse employment action. Covered employers must give each employee a written description of each quota, including the tasks or amount of material expected within a period and any potential adverse employment action for missing the standard. Existing employees were to receive this information by January 31, 2022; new employees must receive it when hired.

The law does not ban quotas outright. It bars quotas that prevent or interfere with protected workplace rights. Two distinct questions therefore matter:

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  • Was the quota disclosed? Workers must receive the required written description of the quota and potential consequences.
  • Did the quota interfere with protected rights? A quota cannot prevent meal or rest breaks, bathroom use—including reasonable travel time—or compliance with occupational health and safety standards. Adverse action cannot be based on an undisclosed or unlawful quota.

What workers can request or report

The Labor Commissioner’s FAQ describes information requests and complaint routes for workers who believe a quota has affected their rights:

  • Current workers: A worker who believes a quota prevented protected breaks or safety compliance may request a written description of the quota and the most recent 90 days of personal work-speed data. An employer that does not monitor such data need not provide it.
  • Former workers: A former worker may request the quota description and the most recent 90 days of personal work-speed data before separation. The FAQ allows one request after separation.
  • Response period: Under the described AB 701 process, employers must provide requested information within 21 days.
  • Concerns and retaliation: The Labor Commissioner identifies a reporting route for suspected unlawful quotas and a retaliation complaint process for adverse action connected to quota rights.

For the current instructions, forms, and contact information, use the California Labor Commissioner’s Warehouse Quotas FAQ. It is general agency information, not individualized legal advice; a worker’s options may depend on the facts of their situation.

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What the announcement does—and does not—establish

The state announced a substantial citation based on its view that Amazon failed to disclose quotas at two California facilities. Amazon rejected that view and appealed. The announcement establishes the agency’s allegations and the amount it assessed, but not the final result of the contested case. Readers should distinguish the citation from a final adjudicated outcome and avoid treating the alleged violations as settled findings.

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