Workplace Issues

Amazon’s Warehouse Productivity Measure Sparks New California Law

The new law will prohibit companies from enforcing quotas and penalties that hamper employees' health and safety.
Lauren MuskettSeptember 23, 2021

Amazon and other companies are mandated to disclose any quotas or workplace productivity measures for their workers in the state under a new California law, The Wall Street Journal reports. Other states could also follow suit. 

The law follows Amazon warehouse and other employees’ complaints about working conditions and injury rates. Amazon’s algorithm-based quotas to measure employee productivity accomplished its faster-shipping goals at the cost of unfair firings, high-stress situations, and higher injury rates than the national average.

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The new law will prohibit companies from enforcing quotas and penalties that hamper employees’ health and safety and targets Amazon’s warehouse quotas devised to drive shipping times.

Amazon could have to reduce quotas and hire more workers if the productivity requirements appear too strenuous.

The company defended its quota system and acknowledged accounting for health and safety. It has invested $300 million in worker safety and recently relaxed some policies that measure worker productivity.

Price Action: Amazon shares were up 0.95% at $3,412.29 Thursday.

This story originally appeared on Benzinga. © 2021 Benzinga.com.

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