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AB-3056 Warehouse distribution centers.(2019-2020)

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Date Published: 08/20/2020 07:50 PM
AB3056:v94#DOCUMENT

Amended  IN  Senate  August 20, 2020
Amended  IN  Senate  July 08, 2020
Amended  IN  Assembly  June 10, 2020
Amended  IN  Assembly  May 11, 2020
Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3056


Introduced by Assembly Member Gonzalez
(Principal coauthor: Assembly Member Kalra)

February 21, 2020


An act to add Part 8.6 (commencing with Section 2100) to Division 2 of the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 3056, as amended, Gonzalez. Warehouse distribution centers.
Existing law relating to employment regulation and supervision imposes special provisions on certain occupations and industries. Existing law charges the Labor Commissioner and the Division of Labor Standards Enforcement with the enforcement of labor laws.
This bill would enact prescribed protections for certain warehouse and distribution center employees. The bill would prohibit an employer from imposing a quota upon an employee under which reasonable amounts of time that the employee spends on any of the specified activities is counted toward the time required for completing the quota, or results in the employee having less time to complete the quota. The bill would define terms for its purposes.
This bill, except as specified, would require the Division of Labor Standards Enforcement to enforce its provisions. The bill would require the Labor Commissioner to investigate alleged violations of these provisions and order appropriate temporary measures pending the completion of a full investigation or hearing. The bill would also authorize the Labor Commissioner to order appropriate relief for employees or other persons whose rights were violated and take appropriate enforcement actions, including imposing civil penalties, against employers, as provided. The bill would authorize the commissioner to adopt regulations to implement its provisions.
This bill would subject an employer who violates the quota prohibition to civil penalties.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The rapid growth of just-in-time logistics and same-day and next-day consumer package delivery, and advances in technology used for tracking employee productivity, have led to a rise in the number of warehouse and distribution center workers who are subject to quantified performance quotas.
(b) Warehouse and distribution center employees who work under such quotas are expected to complete a quantified number of tasks within specific time periods, often measured down to the minute or second, and face adverse employment action, including suspension or termination, if they fail to do so.
(c) Warehouse and distribution center employees who work under such quotas frequently skip restroom breaks in order to keep up with their quota. Such employees also face barriers to documenting and reporting Labor Code violations because any time spent away from their station reduces the amount of time available to complete their quota.

SEC. 2.

 Part 8.6 (commencing with Section 2100) is added to Division 2 of the Labor Code, to read:

PART 8.6. Warehouse Distribution Centers

CHAPTER  1. General Provisions

2100.
 The enactment of this part is an exercise of the police power of the State of California for the protection for the public welfare, prosperity, health, safety, and peace of its people.

2101.
 As used in this part:
(a) “Commissioner” means the Labor Commissioner.
(b) “Defined time period” means any unit of time measurement equal to or less than the duration of an employee’s shift, and includes hours, minutes, and seconds and any fraction thereof.
(c) “Employee” means a nonexempt employee, as defined in Section 2750.3, who works at a warehouse distribution center.
(d) “Employer” means a person who directly or indirectly, or through an agent or any other person, including through the services of a third-party employer, temporary service, or staffing agency or similar entity, employs or exercises control over the wages, hours, or working conditions of 100 or more employees at a single warehouse distribution center or 1,000 or more total employees at warehouse distribution centers in the state. For purposes of this definition, all employees of an employer’s commonly controlled group, as that term is defined in Section 25105 of the Revenue and Taxation Code, shall be counted in determining the number of employees employed at a single warehouse distribution center or at one or more warehouse distribution centers in the state.
(e) “Person” means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.
(f) “Quota” means a performance standard under which an employee is assigned or required to perform a quantified number of tasks, or to handle or produce a quantified amount of material, within a defined time period and under which the employee may suffer an adverse employment action if they fail to complete the performance standard.
(g) “Warehouse distribution center” means an establishment as defined by any of the following North American Industry Classification System (NAICS) Codes, however such establishment is denominated:
(1) 493110 for General Warehousing and Storage.
(2) 423 for Merchant Wholesalers, Durable Goods.
(3) 424 for Merchant Wholesalers, Nondurable Goods.
(4) 454110 for Electronic Shopping and Mail-Order Houses.

2102.

The Division of Labor Standards Enforcement shall enforce the provisions of this part, subject to the provisions of Chapter 3 (commencing with Section 2108).

2103.

This part does not limit the authority of the Attorney General or the district attorney of any county, either upon their own complaint or the complaint of any person acting for themselves or the general public, to prosecute actions, either civil or criminal, for violations of this part, or to enforce the provisions thereof independently and without specific direction of the director.

2104.2102.
 The commissioner shall have authority to adopt regulations implementing this part.

2105.2103.
 This part does not preempt any city, county, or city and county ordinances that provide equal or greater protection to employees covered by this part.

2106.2104.
 The provisions of this part are severable. If any provision of this part or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

CHAPTER  2. Reasonable Quota Requirements

2107.2106.
 An employer shall not impose a quota upon an employee under which reasonable amounts of time that the employee spends on any of the following activities is counted toward the time required for completing the quota, or results in the employee having less time to complete the quota:
(a) Accessing and using a restroom or handwashing station or accessing adequate and sanitary hydration.
(b) (1) Documenting or reporting to the employer or to the responsible government authority a colorable claim of a Labor Code violation.
(2) This subdivision does not require an employer to allow an employee to leave the premises of the warehouse distribution center to document or report to the employer or responsible government authority a colorable claim of a Labor Code violation.
(c) Taking any legally mandated rest, recovery, or meal period.

CHAPTER  3. Enforcement

2108.
 (a) The Division of Labor Standards Enforcement shall enforce the provisions of this part, subject to the provisions of this chapter.
(b) An employee or other person may report to the Labor Commissioner a suspected violation of this part. The commissioner shall encourage reporting pursuant to this subdivision by keeping confidential, to the maximum extent permitted by applicable law, the name and other identifying information of the employee or person reporting the violation. However, the commissioner may disclose that person’s name and identifying information as necessary to enforce this part or for other appropriate purposes, upon the authorization of that person.
(c) The Labor Commissioner shall investigate an alleged violation, and order appropriate temporary relief to mitigate the violation or to maintain the status quo pending the completion of a full investigation or hearing.
(d) If the Labor Commissioner, after a hearing that contains adequate safeguards to ensure that the parties are afforded due process, determines that a violation of this part has occurred, the commissioner may order any appropriate relief, including reinstatement, backpay, and the payment of an additional sum in the form of a civil penalty to an employee or other person whose rights under this part were violated.
(e) When prompt compliance by an employer is not forthcoming, the Labor Commissioner may take any appropriate enforcement action to secure compliance, including the filing of a civil action. In compensation to the state for the costs of investigating and remedying the violation, the commissioner may order the violating employer to pay to the state a sum of not more than one hundred dollars ($100) for each day or portion of a day a violation occurs or continues for each employee or other person whose rights under this part were violated.

2108.2109.
 Any employer that violates Section 2107 2106 shall be subject to a civil penalty in the amount of two hundred fifty dollars ($250) per employee per violation in an initial citation and one thousand dollars ($1,000) per employee for each violation in a subsequent citation. The civil penalties provided for in this section are in addition to any other penalty provided by law.

2110.
 This part does not limit the authority of the Attorney General or the district attorney of any county, either upon their own complaint or the complaint of any person acting for themselves or the general public, to prosecute actions, either civil or criminal, for violations of this part, or to enforce the provisions thereof independently and without specific direction of the director.