Creates new provisions relating to work performance standards for warehouse employees

Employers subject to this act are required to establish workplace performance standards, as described further in the act, for all current employees as of October 1, 2026. Any changes or updates to the standards must be communicated to employees as provided in the act. The act additionally provides various restrictions on what cannot be included in an employer's standards.

Adverse Actions Employers are prohibited from taking adverse employment actions against a covered employee for, among other factors described in the act, failure to meet a work performance standard that was not previously disclosed to the employee or that is otherwise in violation of this act.

Specific requirements for termination and discipline of employees are included. Employees are permitted to request to speak to a human manager during the employee's shift. An employer shall assign a human manager authorized to make decisions related to discipline to respond not later than thirty minutes after such a request. An employee may make no more than one request per every two hours.

An employer is prohibited from disciplining or terminating an employee based on failure to meet a performance standard unless it has provided prior written notice, in the manner described in the act, of such action. In the case of a termination based on failure to meet a performance standard, the employer must provide two weeks notifice of such termination. The time period between a first warning or discipline and termination shall be not less than 30 days, and the employer may not rely on a warning or discipline issued more than one year in the past to justify a termination.

Prohibition on Reductions in Workforce Employers are prohibited from commencing a reduction in their workforce that would result in an employment loss at a single site of employment during any 30-day period for 50 or more employees unless such employer has offered a new employment position, in writing at least 30 days prior to the commencement of the reduction in force and with comparable wages and commuting distance, to each employee who may reasonably be expected to experience an employment loss as a consequence of the reduction in force.

If an employer discharges an employee, the employer shall pay the employee two weeks of severance pay plus an additional day of severance pay for each two months that the employee has worked for the employer. One week of severance pay shall be calculated based on the employee’s average weekly earnings including overtime pay received during the employee’s most recent 12 months of employment.

Records Except as otherwise provided in the act, employers must keep records of workplace performance records applicable to each employee. Such records shall be maintained for a period of three years. Employees and former employees are permitted to request their workplace performance records. An employer must provide a written copy of any such records requested not later than 5 calendar days after receipt of such request, in the manner provided in the act.

Non Discrimination Employers are prohibited from discharging or in any way retaliating, discriminating, or taking any adverse action against any employee or former employee for:• Making a lawful request pursuant to this act; • Declining to work more than 40 hours in a week, more than 10 hours in a day, or consecutive shifts with less than 12 hours between the shifts; or • Filing a civil action pursuant to this act

If an employer discharges or in any way retaliates, discriminates, or takes any adverse action against any employee or former employee within 90 days after such employee engages in or attempts to engage in any of the aforementioned activities, there is a rebuttable presumption that such adverse action is in violation of this provision. Such presumption may be rebutted by clear and convincing evidence that (1) the adverse action was taken for other permissible reasons, and (2) the employee engaging or attempting to engage in the activities described was not a motivating factor in the employer taking such adverse action.

Civil Action Any employee aggrieved by a violation of this act may bring a cause of action in any court of competent jurisdiction. An employee may recover damages, civil penalties, and such equitable and injunctive relief as the court deems appropriate. An employer who violates this act is liable to a plaintiff for damages of not less than $5,000 or more than $7,500 per violation in addition to economic damages, in the discretion of the court and based on severity of the violation and any history of prior violations. A complainant who prevails in such a civil action shall be awarded reasonable attorney's fees and costs to be taxed by the court. An employer who violates this act may additionally be assessed a civil penalty by the court of (1) $1,000 for a first violation, (2) $2,000 for a second violation, or (3) $3,000 for a third or subsequent violations. An employer who fails to pay in full required severance pay shall be liable for payment of the required severance pay, plus an additional two times the unpaid amount as liquidated damages.

Power of DOLIR The Department of Labor and Industrial Relations (DOLIR) is required to monitor the injury rates of employees working in warehouse distribution centers in the state. DOLIR is permitted to determine whether an investigation of any potential violation of this act if an employer is found to have an annual injury rate at or over one and one-half times the average annual injury rate for the relevant North American Industry Classification System codes, based on data reported to the federal Occupational and Safety and Health Administration.

Employers are required to make quarterly reports to DOLIR disclosing any artificial intelligence-related job impact experienced by the entity in the state, as described more fully in the act. The Director of DOLIR shall impose civil monetary penalties on an employer in violation of this provision. For each violation, a penalty of $500 shall be imposed. In the case of willful or repeated violations, an additional amount of not less than $1,000 and not more than $3,000 shall be imposed.

The Director of DOLIR is required to make quarterly reports based on data reported by employers who filed reports pursuant to this act.

All dollar amounts in this act are subject to a cost of living adjustment on July 1 of each year by the Director of DOLIR. SCOTT SVAGERA