Amazon is fined over 900 million yen for 'not properly informing warehouse workers of productivity quotas'
In June 2024, Amazon was fined $5,901,700 (approximately 930 million yen) by the California Labor Commission for 'failing to properly notify warehouse workers of their productivity quotas in writing.' The bill that Amazon allegedly violated is also known as the 'Warehouse Quotas law,' and is essentially a bill that targets Amazon's warehouses.
Labor Commissioner Cites Amazon Nearly $6 Million for Violating California's Warehouse Quotas Law | California Department of Industrial Relations
Amazon fined $5.9 million over warehouse worker quotas in California | Reuters
https://www.reuters.com/sustainability/boards-policy-regulation/amazon-fined-59-million-over-warehouse-worker-quotas-california-2024-06-18/
Amazon Finances $5.9 Million Over Warehouse Productivity Quotas - Bloomberg
https://www.bloomberg.com/news/articles/2024-06-18/amazon-finished-5-9-million-over-warehouse-productivity-quotas
Amazon Has Fined Nearly $6 Million Over Warehouse Work Quotas - The New York Times
https://www.nytimes.com/2024/06/18/business/economy/amazon-california-productivity-quota.html
It has long been reported that working conditions at Amazon's logistics center warehouses are harsh. In 2023, cases were discovered in the UK where some warehouse workers had been deceived into working under false employment conditions, and a survey also found that 41% of warehouse workers had experienced injuries while on the job.
In order to improve the poor working conditions at Amazon warehouses, some local governments in the United States have enacted their own laws targeting Amazon warehouses. The Warehouse Quota Act, passed by the California State Assembly in 2021, is one of these laws, and the bill stipulates that 'no quotas that prevent employees working in warehouses or distribution centers from taking meals or taking breaks should be imposed.' Although the bill does not name any specific companies, it has been pointed out that it is essentially a bill targeting Amazon warehouses.
California passes bill targeting Amazon: 'Warehouse workers cannot be required to meet quotas that prevent them from eating or using the restroom' - GIGAZINE
The California Labor Commission conducted an investigation into working conditions at Amazon warehouses from September 22, 2022, based on the Warehouse Allocation Act that came into effect on January 1, 2022. As a result, it was found that a total of 59,017 violations occurred at Amazon warehouses in Moreno Valley and Redlands between October 20, 2023 and March 9, 2024.
According to reports, Amazon violated warehouse quota laws by not properly informing workers at these warehouses of their 'productivity quotas.' One warehouse worker told the New York Times, 'You get told you can't scan enough items. This actually happened to me. I was told I was one point short of my quota, but I didn't know what the target was.'
Following the results of the investigation, the California Labor Commission imposed a fine of approximately 930 million yen on Amazon under the Warehouse Quota Act. Labor Commissioner Lilia Garcia Brower commented, 'The one-to-one evaluation system Amazon used in these two warehouses is exactly what the Warehouse Quota Act was intended to prevent. Undisclosed quotas put workers under pressure to work faster and force them to work without breaks, which can lead to higher injury rates and other violations.'
Maureen Lynch Vogel, a spokesperson for Amazon, said the company is appealing the fine. 'At Amazon, individual performance is measured over time, tied to team performance across the workplace, and employees are free and encouraged to reflect on their own performance at any time,' Vogel said.
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