IWLA Statement on AB 701- The Warehouse Workers Protection Act

AB 701 is targeted at a single company – Amazon – but it would inadvertently damage the entire warehouse industry in California!

The bill was created with the intention of protecting warehouse workers, but it fails to create even one new worker protection that is not already enforceable under California law, making the bill redundant and ineffective.

On top of that, it will create substantial new costs for warehouses through the regulatory enforcement section, which would allow the employer-funded Labor Commissioner’s Office to charge attorneys’ fees and costs – essentially requiring businesses to pay twice for Labor Commissioner enforcement.

Passage of this bill will also create substantial new Private Attorneys General Act (PAGA) liability for businesses, with each new section of the Labor Code creating a separate cause of action, giving plaintiffs’ attorneys more grounds to leverage large settlements from warehouse employers.

AB 701 will raise costs on warehousing; cost increases that will ultimately be passed on to the public, raising prices on practically all consumer goods, from groceries to prescription drugs to automotive parts to clothing – basically any product that you buy! 

We also fear that the increased costs that will be thrust upon warehouse businesses will potentially push some operations out of state, thus taking many good jobs away from working-class Californians and further damaging California’s economy.

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