COMP News – California Governor Gavin Newsom signed a new bill that will protect warehouse workers by improving workplace conditions for them. Companies will have 30 days from the day an employee is hired to provide them with a quota they expect them to meet. In addition, this law will prevent employees from being penalized for necessary breaks such as a restroom or meal break.

The new law, which will impact companies such as Amazon and other major retailers, forces them to disclose production quotas and productivity metrics to warehouse employees and government agencies. Companies will have 30 days from the date someone is hired to provide an employee with a written description of the quotas they need to meet. 

The law also prohibits employers from penalizing or firing warehouse workers for failing to meet quotas because they took restroom or meal breaks. Companies are barred from retaliating against employees who complain and fail to meet “unsafe” quotas. The measure also gives workers the right to go to court to seek relief.

A trade group that represents retailers in California lobbied against the bill. The group stated that this new bill will cause job losses and shipping delays. This could especially be a problem for the upcoming holiday season.

We are disappointed Governor Newsom signed AB 701, which will exacerbate our current supply chain issues, increase the cost of living for all Californians and eliminate good-paying jobs,” Rachel Michelin, president of the California Retailers Association, said in a statement after the measure was signed into law. “With California’s ports facing record backlogs of ships waiting off the coast and inflation spiking to the fastest pace in 13 years, AB 701 will make matters worse for everyone — creating more backordered goods and higher prices for everything from clothes, diapers and food to auto parts, toys and pet supplies.

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