Could a quota requirement violate labor laws?

On Behalf of | Nov 16, 2023 | Employment |

Around 162,000 people in California worked in jobs related to storing or moving goods as of 2023, according to the California Department of Industrial Relations.

A new law called Assembly Bill 701, in effect since January 1, 2022, implemented important protections for warehouse workers in the state. It deals with the problem of quotas in warehouses, making sure these requirements do not break labor laws.

Scope of law

This law applies to employers who control either directly or indirectly 100 or more workers at one warehouse distribution center, or 1,000 or more workers spread across one or more warehouse distribution centers in California. It is important to note that the law also covers employees from external staffing agencies, as long as the employer controls the terms and conditions of employment for those individuals.

Definition of quota

The law defines a quota as a work standard that forces an employee to work at a specific speed, complete a certain number of tasks or handle a certain amount of material within a set time period. What makes a quota under this law distinct is that an employee might face negative consequences if they do not meet the specified performance standard.


Quotas in warehouses have often been a problem, leading to overworked and stressed employees. Assembly Bill 701 aims to deal with these issues by clearly outlining what counts as a quota and ensuring that employees do not receive unfair treatment for not meeting unreasonable standards.

This law is a significant move toward safeguarding the rights of warehouse workers. It brings a focus on fairness, transparency and the well-being of employees in the warehouse industry.