MODEL BILLS

Warehouse Worker Protection Act

Summary: The Warehouse Worker Protection Act requires employers to promptly disclose any quotas, prevents quotas from interfering with meal or rest periods or use of bathroom facilities, and mandates disclosure and recordkeeping.

Based on OR HB 4127 (2024)

SECTION 1. SHORT TITLE

This Act shall be called the “Warehouse Worker Protection Act.”

SECTION 2. FINDINGS

The legislature finds that:

1. Many warehouse workers are subjected to unsafe working conditions and abusive practices, particularly regarding production quotas.

2. The warehousing industry has a significantly higher rate of injuries and illnesses compared to the national average, with cases involving days away from work, job restrictions, or transfers at a high rate.

3. Warehouse workers are often subjected to grueling production quotas, which lead to injuries as workers rush to meet targets while cutting corners or skipping breaks.

4. Current systems often lack transparency, with workers unaware of the specific quotas they are expected to meet or the consequences of failing to do so.

5. Warehouse workers need and deserve fundamental protections.

SECTION 3. WAREHOUSE WORKER PROTECTION

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section:

1. “Defined time period” means any unit of time measurement equal to or less than the duration of an employee’s shift, including but not limited to hours, minutes, seconds and any fraction of those units of time.

2. “Employee” means an employee who is subject to federal or state laws relating to minimum wage and overtime and who works at a warehouse distribution center. “Employee” does not include a driver or courier to or from a warehouse distribution center.

3. “Employer” means a person who directly or indirectly, through an agent or any other person, including through the services of a third-party, temporary services or staffing agency or any other similar entity, employs or exercises control over the wages, hours or working conditions of the employees employed at a warehouse distribution center of 100 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in this state.

4. “Quota” means a work standard under which an employee is assigned or required to perform at a specified productivity or speed, perform a quantified number of tasks or handle or produce a quantified number of materials, within a defined time period and under which the employee may suffer an adverse employment action if they fail to complete the performance standard.

5. “Warehouse distribution center” means an establishment engaged in any services relating to: (a) Warehousing and storage, as that term is used in the 2022 North American Industry Classification System code 493; (b) Merchant wholesale of durable goods, as those terms are used in the 2022 North American Industry Classification System code 423; (c) Merchant wholesale of nondurable goods, as those terms are used in the 2022 North American Industry Classification System code 424; or (d) Retailing using electronic shopping and mail-order houses, as those terms are used in the 2017 North American Industry Classification System code 454110.

“Warehouse distribution center” does not mean an establishment engaged in any services relating to: (a) Farm product warehousing and storage, as those terms are used in the 2022 North American Industry Classification System code 493130; (b) Refrigerated warehousing and storage, as those terms are used in the 2022 North American Industry Classification System code 493120; (c) Merchant wholesale of professional medical, dental and hospital equipment and supplies, as those terms are used in the 2022 North American Industry Classification System code 423450; (d) Merchant wholesale distribution of drugs and druggists’ sundries, as those terms are used in the 2022 North American Industry Classification System code 424210; (e) Couriers and express delivery services, as those terms are used in the 2022 North American Industry Classification System code 492110; (f) Merchant wholesale distribution of carbonated beverages, as those terms are used in the 2022 North American Industry Classification System code 424490; (g) Merchant wholesale distribution of wine and distilled alcoholic beverages, as those terms are used in the 2022 North American Industry Classification System code 424820; or (h) Merchant wholesale distribution of beer and ale, as those terms are used in the 2022 North American Industry Classification System code 424810.

6. “Work speed data” includes any of the following information that is collected or maintained by an employer for purposes of evaluating an employee’s performance regarding meeting a quota to which the employee is subject: (a) The quantity of tasks performed; (b) The quantity of items or materials handled or produced; (c) The rate or speed at which the employee performs assigned tasks; (d) Measurements or metrics of employee performance in relation to an applicable quota; or (e) Time categorized as performing tasks or not performing tasks.

“Work speed data” does not include data or information that does not relate to the performance of a quota, including but not limited to: (a) Qualitative performance assessments; (b) Personnel records; and (c) Itemized wage statements required under [cite state law].

(B) QUOTAS

1. An employer shall provide each employee, upon hire or within 30 days after the effective date of this Section, whichever is later, with written documentation summarizing any quota to which the employee is subject. Each time the quota changes thereafter, the employer shall provide an updated written description of each quota to which the employee is subject within 2 business days of the quota change. The documentation must include:

(a) The quantified number of tasks to be performed, or materials to be produced or handled, within a defined time period; and

(b) A description of the potential consequences, including any adverse employment actions, that an employee may face as a result of the employee’s failure to meet the applicable quota.

2. The employer shall provide the written documentation required under subsection (1) of this section, in the language the employer regularly uses to communicate with the employee, as follows: (a) To a new employee at the time of hire; (b) To an existing employee within two business days following the date on which the employer makes a change to a quota to which the employee is subject; and (c) To an employee when an employer takes an adverse employment action against the employee for failing to meet the applicable quota.

3. An employer may not take an adverse employment action against an employee for failing to meet a quota for which an employee did not receive written documentation required under subsection (1) of this section. A person who alleges a violation of this section may file a complaint with the [Secretary of Labor] in the manner provided by [cite state law].

4. An employee shall not be required to meet a quota that prevents compliance with meal or rest periods or use of bathroom facilities, including reasonable travel time to and from bathroom facilities. An employer shall not take adverse employment action against an employee for failure to meet a quota that does not allow a worker to comply with meal and rest periods or for failure to meet a quota that has not been disclosed to the employee pursuant to this Section.

(C) EMPLOYEE RIGHT TO REQUEST

1. If a current or former employee of an employer believes that the employee has been disciplined for failing to meet a quota, the current or former employee shall have a right, upon request, to receive records as follows:

(a) If the requesting employee is a current employee, the employee shall have a right to a copy of a record that includes: the information described in subsection B(1) of this section and the employee’s work speed data for the 90 days immediately preceding the date of the employee’s request.

(b) If the requesting employee is a former employee, the employee shall have a right to make one request for a copy of a record that includes: (A) The information described under subsection B(1) of this section related to the quota to which the former employee was subject for the 90 days immediately preceding the date of the employee’s separation from the employer, and the former employee’s work speed data for the 90 days immediately preceding the date of the former employee’s most recent separation from employment.

2. A former employee has the right to request records under subsection (1) of this section within three years following the date of the employee’s separation from employment.

3. An employer shall provide records requested pursuant to this section free of charge and as soon as practicable upon request of a current or former employee, but not later than 21 calendar days from the date of the request.

4. Each employer shall establish, maintain, and preserve for at least 3 years contemporaneous, true, and accurate records to ensure compliance with requests for data.

5. The [Secretary of Labor] may order an employer to produce the records described under this section.

6. Nothing in this section may obligate an employer to impose a quota or monitor work speed data or to provide the records described in this section if the employer does not monitor work speed data.

(D) EFFECT OF COLLECTIVE BARGAINING AGREEMENT

Sections B and C do not apply to an employer who is subject to a collective bargaining agreement under which employees are subject to a performance evaluation metric that is subject to review and negotiation according to the terms of the agreement, and that provides for rights to request records that are substantially equivalent to the rights provided under section C.

(E) ENFORCEMENT

1. The [Secretary of Labor] may promulgate rules and regulations to enable the enforcement of this section.

2. In addition to any other penalty provided by law, the [Secretary of Labor] may assess a civil penalty not to exceed $1,000 against any person that willfully violates this section or any rule adopted thereunder.

3. Nothing in sections B, C or D relieves an employer of the obligation to comply with any other provision of law.

SECTION 4. EFFECTIVE DATE

This law shall become effective on July 1, 20XX.