California Fines Amazon $5.9 Million for Failing to Disclose Warehouse Quotas

Amazon.com has been hit with a $5.9 million fine by California labor regulators, who allege that the company did not adequately inform employees about productivity requirements at two of its warehouses, one of which is facing unionization efforts.

The California Labor Commissioner, Lilia Garcia-Brower, announced the fines on Tuesday, revealing that they were imposed in May. The penalties stem from a 2022 law requiring companies to provide written definitions of quotas to employees who may be penalized for not meeting performance targets.

According to the commissioner, Amazon violated this law approximately 60,000 times over a five-month period at large facilities located in Moreno Valley and Redlands.

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Amazon spokesperson Maureen Lynch Vogel stated that the company is appealing the fines and contested the claim that warehouse workers had specific targets to meet.

The issue of Amazon’s alleged quota system has been a focal point in a broader national movement to unionize warehouse workers. In 2022, workers at a warehouse in New York City successfully unionized, while other attempts in locations in New York and Alabama have failed.

At the Moreno Valley warehouse, known as ONT8, a union petition was filed in 2022 but was later withdrawn amid allegations of unlawful anti-union activities by Amazon. An administrative court is set to address these allegations, which Amazon has denied, in August.

Garcia-Brower emphasized that Amazon’s quota system undermines the protections intended by California law. In response to the situation, Congress is considering a Democratic-backed proposal that would mirror California’s law, requiring written notice of quotas and prohibiting policies that restrict employee breaks or restroom access.

Senator Ed Markey of Massachusetts, a supporter of the proposed legislation, noted that the fines against Amazon highlight the urgent need for stricter regulations on “punishing” quotas.

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