Arizona 2025 Regular Session

Arizona Senate Bill SB1465 Compare Versions

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1	1	REFERENCE TITLE: collective bargaining; warehouse employees; quotas State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1465 Introduced by Senator Bravo AN ACT amending title 23, chapter 8, Arizona Revised Statutes, by adding article 9; relating to labor. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: collective bargaining; warehouse employees; quotas
10	10	State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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14	14	REFERENCE TITLE: collective bargaining; warehouse employees; quotas
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44	44	Introduced by
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64	64	AN ACT
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68	68	amending title 23, chapter 8, Arizona Revised Statutes, by adding article 9; relating to labor.
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74	74	(TEXT OF BILL BEGINS ON NEXT PAGE)
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78	78	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_STATUTE23-1451. 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 as defined in this section. 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_STATUTE23-1452. 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 that uses 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_STATUTE23-1453. 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 shall retain the EMPLOYMENT records for the 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_STATUTE23-1454. 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 employer's payroll 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_STATUTE23-1455. 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_STATUTE23-1456. 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 engages or attempts 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_STATUTE23-1457. 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 shall include 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 that are 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_STATUTE23-1458. 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
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Title 23, chapter 8, Arizona Revised Statutes, is amended by adding article 9, to read:
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84	84	ARTICLE 9. WAREHOUSE EMPLOYEES
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86	86	START_STATUTE23-1451. Definitions
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88	88	In this article, unless the context otherwise requires:
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90	90	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.
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92	92	2. "Commission" means the industrial commission of Arizona.
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94	94	3. "Defined time period":
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96	96	(a) Means any unit of time measurement equal to or less than the duration of an employee's shift.
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98	98	(b) Includes hours, minutes, seconds and fractions.
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100	100	4. "Designated employee's representative" means any employee representative, including an authorized employee representative that has a collective bargaining relationship with the employer.
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102	102	5. "Employee" means a nonexempt employee who works at a warehouse distribution center and is subject to a quota as defined in this section.
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104	104	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:
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106	106	(a) Quantities of tasks performed.
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108	108	(b) Quantities of items or materials handled or produced.
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110	110	(c) Rates or speeds of tasks performed.
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112	112	(d) Measurements or metrics of employee performance in relation to a quota.
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114	114	(e) Time categorized as performing tasks or not performing tasks.
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116	116	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.
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118	118	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.
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120	120	9. "Quota" means a performance standard or performance target under which any of the following applies:
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122	122	(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.
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124	124	(b) an employee's actions are categorized and measured between time performing tasks and time not performing tasks within a day.
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126	126	(c) an employee's performance is ranked in relation to the performance of other employees.
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128	128	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:
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130	130	(a) 493 for warehousing and storage.
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132	132	(b) 423 for merchant WHOLESALERS, durable goods.
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134	134	(c) 424 for merchant wholesalers, nondurable goods.
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136	136	(d) 454110 for electronic shopping and mail order houses.
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138	138	(e) 492110 for couriers and express delivery services. END_STATUTE
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140	140	START_STATUTE23-1452. Employees; quotas; written description; rules
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142	142	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:
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144	144	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.
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146	146	2. Any potential adverse employment action that could result from failure to meet a quota.
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148	148	3. Any incentive or bonus program that is associated with meeting or exceeding a quota.
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150	150	B. If there is a change in quota that is different from the most recent quota provided to an employee, the employer shall:
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152	152	1. promptly Notify the employee verbally and in writing before the employee is subject to the new quota.
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154	154	2. Provide the employee with an updated written description of each quota within two business days after the change in quota.
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156	156	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.
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158	158	D. The written description must be described in plain language that uses understandable terms in the employee's preferred language.
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160	160	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.
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162	162	F. An employee shall not be required to meet a quota that:
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164	164	1. Has not been previously disclosed.
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166	166	2. Prevents compliance with any meal break, rest period or use of bathroom laws.
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168	168	3. Measures total output over an increment of time that is shorter than one day.
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170	170	4. Ranks employees in relation to the performance of other employees.
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172	172	G. The time period considered in a quota, including the time designated as productive time or time on task must include:
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174	174	1. Time for rest breaks and reasonable time to travel to designated locations for rest breaks.
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176	176	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.
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178	178	3. Time to perform any activity required by an employer.
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180	180	4. Time to use the bathroom, including reasonable travel time.
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182	182	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.
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184	184	H. An employee is not required To meet a quota that measures and categorizes increments of time for an employee that:
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186	186	1. Is performing measurable tasks and time not performing measurable tasks.
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188	188	2. Is on annual leave.
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190	190	3. Is on sick leave. END_STATUTE
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192	192	START_STATUTE23-1453. Employment records; retention period
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194	194	A. An employer shall establish, maintain and preserve contemporaneous true and accurate records of the following:
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196	196	1. Each employee's work speed data.
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198	198	2. The aggregated data on work speed for similar employees at the same establishment.
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200	200	3. The written descriptions of any quota that was provided to an employee pursuant to section 23-1452.
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202	202	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.
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204	204	C. An employer shall retain the EMPLOYMENT records for the six months before the date of the employee's separation from employment. The employer shall retain the records for a minimum of three years.
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206	206	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
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208	208	START_STATUTE23-1454. Joint labor management safety committee meetings; rules; definition
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210	210	A. Every employer with more than TWENTY-FIVE employees shall establish and administer a joint labor management safety committee.
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212	212	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:
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214	214	1. The employer has a lost workday incidence rate in the top ten percent of all rates for employers in the same industry.
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216	216	2. The workers' compensation premium classification assigned to the greatest portion of the employer's payroll 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.
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218	218	C. A joint labor management safety committee meeting must be held regularly unless otherwise provided in a collective bargaining agreement.
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220	220	D. Joint labor management safety committee members must be selected by employees.
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222	222	E. An employer that does not establish or administer a joint labor management safety committee is in violation of this article.
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224	224	F. The commissioner may adopt rules to EFFECTUATE this section.
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226	226	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:
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228	228	1. Issues that have been brought to the attention of the committee.
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230	230	2. Safety incidents or injuries.
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232	232	3. Recommendations to prevent further safety incidents or injuries. END_STATUTE
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234	234	START_STATUTE23-1455. Employment records; right to request; time to produce
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236	236	A. An employer shall promptly provide the following information on request from a current employee or the designated employee's representative:
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238	238	1. A written description of each quota to which the employee is subject to within two business days after receipt of the request.
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240	240	2. A copy of the employee's work speed data within seven business days after receipt of the request.
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242	242	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.
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244	244	B. An employer shall promptly provide the following information on request of a former employee or the designated employee's representative:
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246	246	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.
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248	248	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.
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250	250	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.
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252	252	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
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254	254	START_STATUTE23-1456. Unlawful retaliation; rebuttable presumption
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256	256	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.
257	257
258	258	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.
259	259
260	260	C. If an employer takes adverse action against an employee within ninety days after the employee engages or attempts 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:
261	261
262	262	1. The action was taken for other permissible reasons.
263	263
264	264	2. Engaging or attempting to engage in activities protected by this article was not a motivating factor in the adverse action. END_STATUTE
265	265
266	266	START_STATUTE23-1457. Enforcement; commission; annual report; rules
267	267
268	268	A. The commission:
269	269
270	270	1. Shall adopt rules as necessary to carry out this article.
271	271
272	272	2. May enforce this article.
273	273
274	274	3. Shall assess civil penalties.
275	275
276	276	4. May establish committees, as necessary.
277	277
278	278	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 shall include all of the following:
279	279
280	280	1. the number of claims filed with the commission pursuant to this article.
281	281
282	282	2. The number of warehouses that have reported an annual number of employee injuries that are above the industry average and related to quotas.
283	283
284	284	3. The number of investigations that are undertaken and enforcement actions initiated, per employer.
285	285
286	286	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.
287	287
288	288	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.
289	289
290	290	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.
291	291
292	292	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:
293	293
294	294	1. The suspension of the quota.
295	295
296	296	2. Restitution damages.
297	297
298	298	3. Relief that addresses any retaliation or other adverse action taken by the employer.
299	299
300	300	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
301	301
302	302	START_STATUTE23-1458. Attorney general; commission; enforcement; penalty
303	303
304	304	A. The attorney general and the commission may enforce this section.
305	305
306	306	B. The court may:
307	307
308	308	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.
309	309
310	310	2. Require employers to conspicuously post in the workplace the following information:
311	311
312	312	(a) Worker's rights under this article.
313	313
314	314	(b) The quota requirements per job.
315	315
316	316	(c) An employee's right to request a written description of a quota or work speed data.
317	317
318	318	(d) How to file a complaint with the commission and the attorney general's office. END_STATUTE