Amazon has been under scrutiny many times before for various reasons, a lot of which concern the well-being of its workers. Unsurprisingly, the retail giant is facing another fine for reportedly violating labor laws implemented because of the company.
Amazon Faces a $5.9 Million Fine
The state of California passed a labor law back in 2022, specifically the AB-701 law after stories from Amazon workers were heard regarding their dangerous work practices to maximize output. Ironically, Amazon is facing one of the biggest fines that was brought on by the rule.
The California Labor Commissioner's office set the fine at $5,901,700, in response to violating the law that requires companies to state clearly warehouse or distribution center worker quotas, as well as how often workers should perform the jobs and what the consequences are for failure.
Amazon failed to follow the law in its Moreno Valley and Redlands facilities, as reported by Engadget, wherein the California Labor Commissioner stated that there had been 59,017 violations logged during inspections.
The company's defense was that it did not provide written quotas due to the facilities having a "peer-to-peer system." Amazon spokesperson Maureen Lynch Vogel explained that they don't have quotas as individual performance is over a long period of time.
Vogel added that workers can and are encouraged to "review their performance whenever they wish. They can always talk to a manager if they're having trouble finding the information." Labor Commissioner Lilia García-Brower disagrees with the practice.
"The peer-to-peer system that Amazon was using in these two warehouses is exactly the kind of system that the Warehouse Quotas law was put in place to prevent," she expressed, adding that undisclosed quotas increase pressure and can lead to higher injury rates or workers skipping breaks.
Governor Gavin Newsom said when he signed the bill: "The hardworking warehouse employees who have helped sustain us during these unprecedented times should not have to risk injury or face punishment as a result of exploitative quotas that violate basic health and safety."
Amazon Was Fine $35 Million in January 2024
Just a little under five months ago, Amazon was also fined a bigger amount for reportedly monitoring its workers in an "excessively intrusive" manner. The fine was placed on Amazon's French warehouse business.
The French Data Protection Authority or CNIL said that the close monitoring of employees broke many of the European Union's privacy rules called the General Data Protection Regulation. The retail giant, of course, denied that it violated any rules, as mentioned in AP News.
"We strongly disagree with the CNIL's conclusions, which are factually incorrect, and we reserve the right to file an appeal," Amazon reasoned, adding that warehouse management systems are industry standard, as well as necessary for ensuring the safety, quality, and efficiency of operations.
