Amazon.com Inc. (NASDAQ:AMZN) has been fined $5.9 million by a California labor regulator for allegedly failing to inform workers of productivity quotas at two of its warehouses.
What Happened: The California Labor Commissioner, Lilia Garcia-Brower, announced the fines on Tuesday, Reuters reported. The fines were issued in May and are tied to a 2022 California law that mandates employers to provide written descriptions of quotas to workers who can be disciplined for not meeting specified job speeds.
The commissioner alleged that Amazon violated this law nearly 60,000 times over five months ending in March at its Moreno Valley and Redlands warehouses, both located outside Los Angeles.
Amazon spokesperson Maureen Lynch Vogel stated that the company is appealing the citations and refuted the claim that warehouse workers have fixed quotas. The alleged quota system has been a key issue in the ongoing campaign to unionize Amazon's warehouses.
"At Amazon, individual performance is evaluated over a long period of time, in relation to how the entire site's team is performing. Employees can – and are encouraged to – review their performance whenever they wish," Lynch Vogel said in a statement.
Congress is reviewing a Democratic-supported bill that would closely align with California's law by mandating written notices of quotas and banning those that restrict workers from taking breaks or using bathrooms.
Sen. Ed Markey (D-MA), a co-sponsor of the bill, emphasized that the fines levied against Amazon on Tuesday underscore the urgent need to address "punishing" quota systems.
Why It Matters: The fine comes at a time when Amazon is facing increased scrutiny over its treatment of workers. In January, the company was fined $35 million by France's privacy watchdog for its intrusive employee monitoring system.
Despite these challenges, Amazon's workers have been taking steps to improve their bargaining power. In June, the Amazon Labor Union aligned with the International Brotherhood of Teamsters to strengthen their influence in future negotiations with the e-commerce giant.
In October, a study revealed that many Amazon warehouse employees in the U.S. were taking unpaid leave due to physical exhaustion or pain resulting from their work duties.
Price Action: Amazon.com Inc. shares closed at $182.81 on Tuesday, down 0.68% for the day, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote