At the beginning of 2022, the very first law in the U.S. meant to address the working conditions of warehouse workers will come into effect in California. On Wednesday, California's Democratic Governor, Gavin Newsom, signed AB107, a law intended to curtail the danger posed by productivity quotas.
"I'm proud to sign this legislation giving [warehouse workers] the dignity, respect, and safety they deserve and advancing California's leadership at the forefront of workplace safety," Newsom said in a statement released by his office.
AB107 requires companies to maintain full disclosure with workers regarding what their production quotas are, will bar companies from using algorithms that regulate "basic worker rights" like regulation bathroom and rest breaks, and will allow workers to pursue injunctive relief against their employers if the workers were somehow retaliated against by their employer for failing to fulfill those quotas.
"We cannot allow corporations to put profit over people," Newsom said. "The hardworking warehouse employees who have helped sustain us during these unprecedented times should not have to risk injury or face punishment as a result of exploitative quotas that violate basic health and safety."
The law establishes enforcement powers via the state's Labor Commission, which will have the authority to issue citations for any violations. This power also includes the authority to investigate alleged violations of the law.
The largest and most obvious target of this law is, of course, Amazon (NASDAQ: AMZN). Internationally, the company has faced criticism regarding the working conditions of its warehouse employees. The pandemic's staffing shortages, shutdowns, and increased demand only made conditions worse for workers.
According to investigations by both news agencies and the pro-labor Strategic Organizing Center, the rate at which Amazon workers suffer serious injuries is roughly twice as high as the industry average. Amazon is notorious for its use of productivity-tracking algorithms which monitor how much time workers spend "off task", including bathroom breaks.
While Amazon hasn't made any public statements regarding the new law, retailer advocates claim that AB107 is only going to make things worse.
"We are disappointed Governor Newsom signed AB 701, which will exacerbate our current supply chain issues, increase the cost of living for all Californians, and eliminate good-paying jobs," California Retailers Association President Rachel Michelin said in a statement.
Michelin argues that these changes will hit consumers the hardest, even claiming that the vaccine rollout will be slowed by the new law.