collective bargaining; warehouse employees; quotas

HB2488 - 572R - I Ver

REFERENCE TITLE:
collective bargaining; warehouse employees; quotas

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2488

Introduced by

Representatives
De Los Santos: Garcia

AN
ACT

amending title 23, chapter 8, Arizona
Revised Statutes, by adding article 9; relating to labor.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 8, Arizona Revised
Statutes, is amended by adding article 9, to read:

ARTICLE 9. WAREHOUSE
EMPLOYEES

START_STATUTE
23-1451.

Definitions

In this article, unless the context otherwise
requires:

1. "Aggregated data" means
information that an employer has combined or collected in summary or another
form for which the data cannot be identified by a specific individual.

2. "Commission" means the
industrial commission of Arizona.

3. "Defined time period":

(
a
) Means any
unit of time measurement equal to or less than the duration of an employee's
shift.

(
b
) Includes
hours, minutes, seconds and fractions.

4. "Designated employee's
representative" means any employee representative, including an authorized
employee representative that has a collective bargaining relationship with the
employer.

5. "Employee" means a
nonexempt employee who works at a warehouse distribution center and is subject
to a quota.

6. "Employee's work speed
data" means information an employer collects, stores, analyzes or
interprets relating to an individual employee's performance of a quota that may
include:

(
a
) Quantities
of tasks performed.

(
b
) Quantities
of items or materials handled or produced.

(
c
) Rates or
speeds of tasks performed.

(
d
) Measurements
or metrics of employee performance in relation to a quota.

(
e
) Time
categorized as performing tasks or not performing tasks.

7. "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
services, a staffing agency, an independent contractor or any similar entity
from the effective date of this section for the past twelve months, employs,
retains or exercises control over the wages, hours or working conditions of one
hundred or more employees at a single warehouse distribution center or five
hundred or more employees at one or more warehouse distribution centers in this
state.

8. "person" means a current
or former employee, including the current or former employee's agent or
employer's agent or person acting on behalf of a hiring entity, or the officer
or agent of any entity, business, corporation, partnership or limited liability
company.

9. "Quota" means a
performance standard or performance target under which any of the following
applies:

(
a
) an employee
is assigned or required, within a defined time period, to perform a quantified
number of tasks or at a specified productivity speed or to handle or produce a
quantified amount of material without a certain number of errors or defects, as
measured at the individual or group level within a defined time period.

(
b
) an
employee's actions are categorized and measured between time performing tasks
and time not performing tasks within a day.

(
c
) an
employee's performance is ranked in relation to the performance of other
employees.

10. "Warehouse distribution
center" means an establishment as defined by any of the following North
American Industry Classification System codes, however the following
establishments are denominated:

(
a
) 493 for
warehousing and storage.

(
b
) 423 for
merchant WHOLESALERS, durable goods.

(
c
) 424 for
merchant wholesalers, nondurable goods.

(
d
) 454110 for
electronic shopping and mail order houses.

(
e
) 492110 for
couriers and express delivery services.
END_STATUTE

START_STATUTE
23-1452.

Employees; quotas; written description; rules

A. on hire or within thirty days of
the effective date of this section, an employer shall provide each employee
with a written description of all of the following:

1. Any quota to which the employee is
subject, including the quantified number of tasks to be performed or materials
to be produced or handled within a defined time period.

2. Any potential adverse employment
action that could result from failure to meet a quota.

3. Any incentive or bonus program
that is associated with meeting or exceeding a quota.

B. If there is a change in quota that
is different from the most recent quota provided to an employee, the employer
shall:

1. promptly Notify the employee
verbally and in writing before the employee is subject to the new quota.

2. Provide the employee with an
updated written description of each quota within two business days after the
change in quota.

C. If an employer takes adverse
employment action against an employee for failure to meet a quota, the employer
shall provide the employee with the applicable quota and the employee's work
speed data that was the basis for the adverse action.

D. The written description must be
described in plain language using understandable terms in the employee's
preferred language.

E. The commission may adopt rules
relating to the written description provided in subsection D of this section
that includes the format, use of language and accessibility requirements.

F. An employee shall not be required
to meet a quota that:

1. Has not been previously disclosed.

2. Prevents compliance with any meal
break, rest period or use of bathroom laws.

3. Measures total output over an
increment of time that is shorter than one day.

4. Ranks employees in relation to the
performance of other employees.

G. The time period considered in a
quota, including the time designated as productive time or time on task must
include:

1. Time for rest breaks and
reasonable time to travel to designated locations for rest breaks.

2. Reasonable travel time to on-site
designated meal break locations.� Meal breaks are not considered time on task
or productive time unless the employee is required by the employer to remain on
duty at a prescribed worksite or to remain on call.

3. Time to perform any activity
required by an employer.

4. Time to use the bathroom,
including reasonable travel time.

5. Time to take any actions necessary
for the employee to exercise the employee's right to a safe and healthful
WORKPLACE, including time to access tools or safety EQUIPMENT necessary to
perform the employee's duties.

H. An employee is not required To
meet a quota that measures and categorizes increments of time for an employee
that:

1. Is performing measurable tasks and
time not performing measurable tasks.

2. Is on annual leave.

3. Is on sick leave.
END_STATUTE

START_STATUTE
23-1453.

Employment records; retention period

A. An employer shall establish,
maintain and preserve contemporaneous true and accurate records of the
following:

1. Each employee's work speed data.

2. The aggregated data on work speed
for similar employees at the same establishment.

3. The written descriptions of any
quota that was provided to an employee pursuant to section 23-1452.

B. The records shall be maintained
and preserved throughout the duration of each employee's period of employment
and made available to any state or governmental agency or the current or former
employee on request.

C. An employer is required to retain
the EMPLOYMENT records for the previous six months before the date of the
employee's separation from employment. The employer shall retain the records
for a minimum of three years.

D. This section does not require an
employer to maintain RECORDS if the employer does not use a quota system or
monitor work speed data.
END_STATUTE

START_STATUTE
23-1454.

Joint labor management safety committee meetings; rules;
definition

A. Every employer with more than
TWENTY-FIVE employees shall establish and administer a joint labor management
safety committee.

B. Every employer with fewer than
TWENTY-FIVE employees shall establish and administer a joint labor management
safety committee if either of the following applies:

1. The employer has a lost workday
incidence rate in the top ten percent of all rates for employers in the same
industry.

2. The workers' compensation premium classification
assigned to the greatest portion of the payroll for the employer has a pure
premium rate in the top twenty-five percent of the premium rates for all
classes as reported by the Workers' Compensation rating Association.

C. A joint labor management safety
committee meeting must be held regularly unless otherwise provided in a
collective bargaining agreement.

D. Joint labor management safety
committee members must be selected by employees.

E. An employer that does not
establish or administer a joint labor management safety committee is in
violation of this article.

F. The commissioner may adopt rules
to EFFECTUATE this section.

G. For the purposes of this section,
"joint labor management Safety committee meeting" means a regularly
scheduled meeting of committee members to discuss and evaluate any of the
following:

1. Issues that have been brought to
the attention of the committee.

2. Safety incidents or injuries.

3. Recommendations to prevent further
safety incidents or injuries.
END_STATUTE

START_STATUTE
23-1455.

Employment records; right to request; time to produce

A. An employer shall promptly provide
the following information on request from a current employee or the designated
employee's representative:

1. A written description of each
quota to which the employee is subject to within two business days after
receipt of the request.

2. A copy of the employee's work
speed data within seven business days after receipt of the request.

3. A copy of the prior six months of
aggregated data on work speed for similar employees at the same establishment
within a reasonable period of time based on the scope of the request.

B. An employer shall promptly provide the
following information on request of a former employee or the designated
employee's representative:

1. a written description of the quota
to which AN EMPLOYEE WAS subject to as of the date of THE EMPLOYEE'S separation
within two business days after receipt of the request.

2. a copy of the employee's work
speed data for the six months before the employee's date of separation within
seven business days after receipt of the request.

3. a copy of aggregated data on work
speed for similar employees at the same establishment for six months before the
other EMPLOYEES' date of separation within a reasonable period of time based on
the scope of the request.

C. This section does not require an
employer to use quotas as described in this SECTION or to monitor work speed
data. An employer that does not use quotas or does not monitor work
speed data has no obligation to provide THE DATA.
END_STATUTE

START_STATUTE
23-1456.

Unlawful retaliation; rebuttable presumption

A. An employer shall not retaliate,
discriminate or take adverse action against a current or former employee for
requesting information about a quota or the employee's work speed data or for
filing a complaint based on this article.� An employee does not need to refer
to this article in order to be protected from any adverse action.

B. This section applies to current
and former employees and current and former employees who mistakenly, but in
good faith, allege violations of this section.

C. If an employer takes adverse
action against an employee within ninety days after the employee's engaging or
attempting to engage in activities protected by this article, such conduct
shall raise a rebuttable presumption that the action is adverse in violation of
this section. The presumption may be rebutted by clear and
convincing evidence that:

1. The action was taken for other
permissible reasons.

2. Engaging or attempting to engage
in activities protected by this article was not a motivating factor in the
adverse action.
END_STATUTE

START_STATUTE
23-1457.

Enforcement; commission; annual report; rules

A. The commission:

1. Shall adopt rules as necessary to
carry out this article.

2. May enforce this article.

3. Shall assess civil penalties.

4. May establish committees, as
necessary.

B. On or before January 1, 2026, the
commission shall submit an annual report to the governor, the president of the
senate and the speaker of the house of representatives and shall provide a copy
of this report to the secretary of state that includes all of the following:

1. the number of claims filed with
the commission pursuant to this article.

2. The number of warehouses that have
reported an annual number of employee injuries that are above the industry
average and related to quotas.

3. The number of investigations
undertaken and enforcement actions initiated, per employer.

C. Based on the data that is reported
to the United states Occupational Safety and Health Administration, if a
worksite or employer is found to have an employee incidence rate of
occupational injuries and illnesses that is at least thirty percent HIGHER than
that year's average incidence rate for the relevant North American Industry
Classification System codes, the commissioner shall open an investigation under
this section.� The employer must hold monthly joint labor management safety
committee meetings as provided in section 23-1454 for two consecutive
years or until the worksite or employer does not have an employee incidence
rate of occupational injuries and illnesses that is thirty percent higher than
the average yearly incidence rate for the relevant North American Industry
Classification System codes.

D. In any successful action brought
by the commission to enforce this article, the court may grant injunctive
relief and damages in order to obtain compliance and shall award costs and
reasonable attorney fees.

E. A current or former employee or a
current or former employee's designated representative may bring an action for
injunctive relief and damages to obtain compliance with this article and may
recover costs and reasonable attorney fees on prevailing in the private right
of action.

F. In any action involving a quota
that prevented compliance with workplace health and safety regulations or meal
or rest breaks, the injunctive relief is limited to:

1. The suspension of the quota.

2. Restitution damages.

3. Relief that addresses any
retaliation or other adverse action taken by the employer.

G. A current or former employee or a
current or former employee's DESIGNATED representative may be awarded damages
equal to the greater of $10,000 or three times the amount of actual damages,
including UNPAID wages and benefits, in actions involving RETALIATION.
END_STATUTE

START_STATUTE
23-1458.

Attorney general; commission; enforcement; penalty

A. The attorney general and the
commission may enforce this section.

B. The court may:

1. Impose a penalty on an employer
for failure to disclose a quota or personal speed data in compliance with this
article.� The penalty shall be a minimum of $100 per employee per pay period in
which an employee was required to work without a disclosed quota or personal
speed data.

2. Require employers to conspicuously
post in the workplace the following information:

(
a
) Worker's
rights under this article.

(
b
) The quota
requirements per job.

(
c
) An
employee's right to request a written description of a quota or work speed
data.

(
d
) How to file
a complaint with the commission and the attorney general's office.
END_STATUTE