New California law to regulate productivity quotas at large warehouse distribution centers

California Governor Newsom recently signed into law Assembly Bill 701—the first of its kind—which regulates the use of quotas and their effects on bathroom breaks for employees in large warehouse distribution centers. The key takeaways of AB 701 are:

1. It applies to employers with 100 or more employees at a single warehouse distribution center (i.e., general warehousing and storage, merchant wholesalers for durable and nondurable goods, and electronic shopping and mail-order houses), or 1,000 or more employees at one or more such centers in California.
2. Employers must provide each employee a written description of each quota that the employee must meet, the exact quantified number of tasks performed or material produced within the defined time period and the potential adverse employment actions that could result from failure to meet the quota.
3. Employees cannot be fired for failing to meet a quota that interferes with their ability to use the bathroom or take rest breaks, or disciplined for being "off-task" when they are complying with health and safety laws.
4. Penalties include injunctive relief, representative actions under the Private Attorneys General Act (which can be cured by the employer) and costs and attorneys' fees if successful.

The law goes into effect on January 1, 2022.