Oregon: New Protections for Warehouse Workers
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APPLIES TO All Employers with OR Warehouse Employees |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion:
Effective January 1, 2025, HB 4127 provides certain warehouse employees with protections regarding quotas. Employers with 100 employees at a single warehouse distribution center in Oregon or 1,000 employees at one or more warehouse distribution centers statewide who use quotas must provide employees with certain notice and record requirements. A “quota” is in effect if an employee may suffer an adverse employment action for failing to “perform at a specified productivity or speed, perform a quantified number of tasks or handle or produce a quantified number of materials, within a defined time period.” A “warehouse distribution center” is an establishment engaged in any services relating to warehousing and storage, merchant wholesale of durable or nondurable goods, or retailing using electronic shopping and mail-order houses, subject to some exceptions.
An employee is any non-exempt employee who works at a warehouse distribution center, excluding drivers or couriers. The law does not apply to a union employer if the collective bargaining agreement provides an employee performance evaluation metric that is subject to review and negotiation according to the terms of the agreement and rights to request records that are substantially equivalent to the law’s record requirements.
Notice Requirements. Effective January 31, 2025, employers are required to provide a written summary of any applicable quota to each employee subject to that quota and are prohibited from taking adverse action against an employee for failing to meet a quota unless the employee received the written summary for the relevant quota. The notice must include the quantified number of tasks to be performed, or materials to be produced or handled, within a defined period and a description of the potential consequences, including any adverse employment actions, that an employee may face as a result of the employee’s failure to meet the applicable quota. Notice must be provided at the time of hire, within two business days after making a change to a quota applicable to the employee, and when taking an adverse employment action against the employee for failing to meet the applicable quota.
Recordkeeping Requirements. Employers monitoring work speed data must provide certain types of records upon request to current and former employees who believe they have been disciplined for failing to meet a quota. Work speed data includes the following:
- the quantity of tasks performed;
- the quantity of items or materials handled or produced;
- the rate or speed at which the employee performs assigned tasks;
- measurements or metrics of employee performance in relation to an applicable quota; and
- time categorized as performing tasks or not performing tasks.
An employer has 21 calendar days from the request date. The free copy of the record must include:
- the information required to be included in the quota notice described above (or, in the case of a former employee, such information related to the applicable quota for the 90 days immediately preceding the employee’s separation from employment); and
- the employee’s work speed data for the 90 days immediately preceding the date of the employee’s request (or, in the case of a former employee’s timely request, their work speed data for the 90 days immediately preceding their most recent separation from employment).
Covered employers should review their obligations as soon as possible. The Bureau of Labor and Industries will be enforcing the law. Violations may result in filing of a complaint with civil penalties of up to $1,000 per violation.
Action Items
- Read the bill here.
- Prepare and provide required notices.
- Retain records of work speed data, if applicable.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase