Los Angeles/ Retail & Industry
AI Assisted Icon
Published on June 20, 2024
Amazon Faces $5.9 Million Fine for Alleged Violations of California Warehouse Quotas LawSource: Unsplash/Yender Gonzalez

Amazon, the online retail behemoth, finds itself in the midst of a hefty $5.9 million predicament for purportedly transgressing California's Warehouse Quotas Law, ABC7 reports. According to the California Department of Industrial Relations, the company's fulfillment centers in Moreno Valley and Redlands failed to comply with state-mandated regulations designed to protect warehouse workers from undue strain and undisclosed productivity expectations.

Under scrutiny are alleged undisclosed work quotas, requirements that detail the number of tasks employees must perform per hour, and any disciplinary repercussions for failure to meet such targets. The Labor Commissioner's Office carried out inspections, leading to a stark revelation: a staggering 59,017 violations between October 2023 to March, as disclosed by ABC7. Amazon, in response to the allegations and impending fines, has signaled its intent to contest, asserting the absence of fixed quotas within their operational model.

Lilia Garcia-Brower, the state Labor Commissioner highlighted that many employers had shown "overwhelming compliance," but Amazon appears to diverge from this course with its alleged infractions. ABC7 noted that workers were kept in the dark regarding their work rates for the day, a concern exacerbated when disciplinary actions are considered without clear knowledge of the expectations.

Amazon has taken an opposing stance, detailing through spokeswoman Maureen Lynch Vogel, "We disagree with the allegations made in the citations and have appealed." Vogel elucidated the company's position to CBS News, "The truth is, we don't have fixed quotas." She emphasized that employees have the opportunity, and encouragement to review their performance metrics whenever they deem it necessary and to seek managerial guidance whenever issues arise.

Nevertheless, the Warehouse Worker Resource Center, an Ontario-based nonprofit, soon became an allied sanctuary where distressed Amazon employees sought clarity regarding their rights under the new law. It also offered pivotal support to state authorities during their investigations, as mentioned by CBS News.