California law requires Amazon to disclose workplace-productivity quotas

Gavin Newsom signed a new law that requires Amazon.com Inc. and other companies to disclose any quotas or workplace-productivity measures it applies to workers in the state.

The legislation is the first to target a central facet of working at an Amazon warehouse, where the company has long used performance quotas to gauge worker productivity as it has gradually sped up shipping times. Newsom, a Democrat, signed the bill about two weeks after it was approved by state lawmakers.

Assemblywoman Lorena Gonzalez, the bill's Democratic author, said it is giving workers some basic dignity back and empowering them to keep themselves safe. Some Amazon warehouse employees have complained about the working conditions and injury rates for years. Amazon has defended its workplace conditions while vowing to reduce injuries.

AMAZON, Amazon, which had not immediately answered an argument on the bill, didn t take a public position on the matter. Rachel Michelin, president of the California Retailers Association, which counts Amazon as a member and opposes the bill, has said that it would exacerbate the supply-chain issues already strained by the Covid -19 pandemic.

The new law will bar companies from enforcing quotas and penalties that affect employees health and safety, including the ability to take breaks or use the bathroom. It will also require companies to disclose their quotas and work-pace requirements to employees and state agencies.

While the law will affect numerous companies, it could also impact Amazon. If the state finds that its productivity requirements are too strict, it can have to reduce quotas hire more workers. The company s warehouse operations employ roughly 750,000 people.

It is also possible that other states can also take similar measures.

The online retailer uses algorithm-based quotas to measure employee productivity. While that has helped Amazon meet its fast shipping goals, some employees have said the system leads to high-pressure firings, as well as unfair situations that lead some to cut corners to try to meet their expected rates. Amazon s higher injury rates than the national average and ignores its quotas.

Amazon has maintained that worker performance is measured over time and is based on experience levels of employees, and that the company is responsible for health and safety when forming performance goals. Amazon has said it is investing $300 million in worker safety and recently eased some policies that measure wage productivity.