October 16, 2021

Volume XI, Number 289

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California Passes Legislation Regarding Job Performance Quotas for Large Warehouse Facilities

On September 22, 2021, California’s Governor signed Assembly Bill 701 (AB 701) which regulates the use of quotas at warehouse distribution centers in California.  The new law applies to large employers who meet industry definitions for General Warehousing and Storage, Merchant Wholesalers (Durable and Non-Durable Goods), and Electronic Shopping and Mail-Order Houses.

AB 701 requires employers with large warehouse distributions centers to disclose quotas and pace-of-work standards to each employee upon hire or within 30 days of the law going into effect.  Employers are required to provide “a written description of each quota to which the employee is subject to, including the quantified number of tasks to be performed or materials to be produced or handled, within a defined period of time, and any potential adverse employment action that may result from failure to meet the quota.”

The new law also provides that employees are not required to meet quotas that prevent compliance with meal or rest periods, use of bathroom facilities, or occupational health and safety laws.

If a current or former employee believes that a quota has caused a violation of such laws, the employee may request, and the employer must provide a written description of each quota applicable to the employee and a copy of the most recent or last 90 days of the employee’s own personal work speed data.  A former employee is limited to one request.

There is a rebuttable presumption of unlawful retaliation if an employer discriminates, retaliates, or takes any adverse action against any employee within 90 days of the employee either: (1) initiating the first request in a calendar year for information about a quota or personal speed data; or (2) making a complaint related to a quota alleging a violation of the labor code.

Employees are authorized to pursue injunctive relief and to recover costs and reasonable attorney’s fees upon prevailing in that action.

The requirements of this legislation go into effect on January 1, 2022.

Jackson Lewis P.C. © 2021National Law Review, Volume XI, Number 266
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About this Author

Shannon Bettis Nakabayashi Employment Attorney Jackson Lewis San Francisco
Principal

Shannon Bettis Nakabayashi is a principal in the San Francisco, California, office of Jackson Lewis P.C. She has extensive experience litigating employment matters in state and federal courts, before arbitrators and administrative agencies.

Shannon regularly defends employers in statewide and nationwide wage and hour class, representative, and/or collective actions, including those brought under California’s complex and unique labor and employment laws.

Shannon regularly counsels clients...

415-394-9400
Ashley N. Rippolone Employment Attorney Jackson Lewis Silicon Valley, CA
Associate

Ashley N. Rippolone is an Associate in the Silicon Valley, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters before state and federal agencies, in litigation, as well as providing preventive advice and counseling.

While attending law school, Ms. Rippolone served as an extern in the Employment and Administrative Mandate section at the California Department of Justice Office of the Attorney General as well as in the Hearings and Enforcement Units at the Equal Employment Opportunity Commission. She was...

669-256-5342
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