The California Labor Commissioner has fined Amazon $5.9 million for failing to disclose productivity quotas to workers at two of its Southern California distribution centers. This penalty, the largest ever under the state's Warehouse Quotas Law, highlights ongoing concerns about worker safety and transparency in the logistics industry.
The Warehouse Quotas Law, enacted in 2021, mandates that employers provide written documentation of the number of tasks employees are expected to complete within a specific timeframe, along with the consequences of failing to meet these targets. The law aims to prevent workplace injuries and unjust disciplinary actions by ensuring that workers are fully informed of their productivity expectations.
Violations and Investigation
The investigation, which began in September 2022, revealed that Amazon had committed approximately 59,017 violations of the law over a nearly five-month period. Each violation incurred a $100 penalty, culminating in the $5.9 million fine. The violations occurred at Amazon's facilities in Redland and Moreno Valley, where workers were not informed about the productivity quotas they were expected to meet.
California Labor Commissioner Lilia García-Brower emphasized that Amazon's peer-to-peer evaluation system, which the company claimed complied with the law, still violated the legislation. "The peer-to-peer system that Amazon was employing in these two warehouses is precisely the type of system that the Warehouse Quotas law was designed to eliminate," García-Brower explained. She further noted that failing to disclose quotas could lead to increased injury rates and compel workers to forgo legally entitled breaks.
Amazon's Response
Amazon has contested the allegations and has already initiated an appeal against the fines. Maureen Lynch Vogel, an Amazon spokesperson, stated, "Amazon does not have fixed quotas. Our individual performance is evaluated over an extended period, taking into account the overall performance of the entire site's team." She added that employees are encouraged to review their performance whenever they deem necessary.
Despite Amazon's defense, the fine underscores the broader issue of workplace safety and transparency in the logistics industry. Labor organizations and Democrats have long criticized Amazon for the demanding pace of work in its fulfillment centers, where employees are responsible for picking, packing, and shipping items destined for customers.
Broader Implications
The fine against Amazon is relatively small compared to the company's massive revenue of $574 billion in 2022 but is significant for a state labor agency. The Occupational Safety and Health Administration (OSHA), the federal agency responsible for preventing workplace safety issues, frequently investigates Amazon workplaces and has issued numerous citations but is limited in the size of fines it can impose.
In Washington state, workplace safety regulators have repeatedly cited Amazon for "willful" violations related to ergonomic injuries that can lead to musculoskeletal disorders. The fines totaled $60,000 in 2022 and $85,000 in 2023, and Amazon is contesting them.
The California law, known as AB 701, was sponsored by Lorena Gonzalez, a former union official who became a State Assembly member and has since returned to labor advocacy. The bill was backed by unions such as the Los Angeles County Federation of Labor and the Teamsters, which recently signed an affiliation deal with the Amazon Labor Union in New York.
The $5.9 million fine against Amazon serves as a critical reminder of the importance of transparency and worker safety in the logistics industry. As labor organizations continue to advocate for stronger protections, it is essential for companies to comply with regulations designed to safeguard their workforce. The case also highlights the need for more comprehensive federal legislation to ensure consistent worker protections across the United States.
