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Governor Newsom Signs Warehouse Quota Legislation Into Law

On September 22, 2021, Governor Newsom signed Assembly Bill 701, restrictive new legislation regulating certain employers’ use of employee quotas and work speed data in warehouse distribution centers.

The new law governs employers with 100 or more employees at a single warehouse distribution center, or 1,000 or more employees at one or more warehouse distribution centers across the state. “Warehouse distribution centers” are defined to include those with NAICS Codes for General Warehousing and Storage, Merchant Wholesalers – Durable Goods, Merchant Wholesalers – Nondurable Goods, and Electronic Shopping and Mail-Order Houses.

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