What happened?

On May 31, 2024, The Washington State Department of Labor & Industries (L&I) adopted rules regarding labor standards for quotas at warehouse distribution centers and the Fraud Prevention and Labor Standard (FPLS) division filed a Permanent Rulemaking CR-103.

What are the details?

The newly implemented regulations will assist L&I in enforcing the Second Substitute House Bill 1762 (2SHB 1762), which establishes additional safeguards for warehouse distribution center employees who are under performance quotas.

FPLS’s adopted rules, codified in Chapter 296-136 WAC, clarify the quota labor standards employers must follow and describe how the division will enforce the requirements of 2SHB 1762, which are effective July 1, 2024.

Qualifying employers must also follow the quota safety standards adopted by DOSH.

Key Bites for Employers:

• Provide quota descriptions to employees: employers must give in writing the quotas they are subjected to, including any discipline that could result from failure to meet each quota.
• Include Necessary Activities: employers must ensure quotas allow enough time for: 
  • Rest breaks.
  • Time to travel to break locations.
  • Time to perform an activity required by the employer to complete the work subject to a quota.
  • Workplace safety, such as accessing safety equipment (but not limited to).
• Prohibition of Retaliation: Refrain from retaliating or taking other adverse action related to protections under the chapter and rules.
• Recordkeeping: Keep records of each employee’s personal work speed data, the aggregated work speed data for similar employees at the same warehouse, and written descriptions of each quota provided to employees.

For additional information, please visit our previous update:

• Washington L&I Releases Second Preliminary Draft of Rules Regarding Quotas at Warehouse Distribution Centers (VensureHR)

Business Considerations

• Employers should familiarize themselves with the new rules and regulations and understand what is required to comply with them.
• Employers should develop a plan to implement them and ensure compliance with the rules and all their requirements.
• Employers should provide training and communication to their employees on (1) how to meet the quotas while also taking necessary breaks and using safety equipment and (2) that they understand what the quotas are and how they are calculated.

Source References

• Labor standards rules finalized for warehouse distribution with quotas Bulletin Release
• 2S HB 1762
• The Division of Occupational Safety and Health Rule (DOSH)  
• Fraud Prevention and Labor Standards Rule (FPLS).  

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