FAQs for Warehouse Workers (Minn. Stat. 182.6526)

Q: As an employer, how do I know if this law applies to me?

A:  The Warehouse Distribution Worker Safety law applies to any person who directly or indirectly (through an agent or any other person, including third-party employers, temporary services, staffing agencies or similar entities) employs or exercises control over the wages, hours or working conditions of either 250 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state. All employees of an employer’s unitary business, as defined in Minnesota Statutes section 290.17, subdivision 4, count in determining the number of employees. Minnesota Statutes section 290.17, subd. 4(b), defines "unitary business" as "... business activities or operations which result in a flow of value between them. The term may be applied within a single legal entity or between multiple entities and without regard to whether each entity is a sole proprietorship, a corporation, a partnership, or a trust."

Q:  What workplaces are covered under this law as a warehouse distribution center?

A:  The law defines the term "warehouse distribution center" using the North American Industry Classification System (NAICS) codes for warehousing and storage, merchant wholesalers, and electronic shopping and mail order houses, as well as couriers and express delivery services. The link to the specific NAICS codes is available on the MNOSHA Compliance:  Warehouse workers webpage.

Q:  Under this law, who is considered an employee?

A:  This law defines an employee (for subdivisions 2, 3 and 4) as a nonexempt employee performing warehouse work occurring on the property of a warehouse distribution center and does not include a nonexempt employee performing solely manufacturing, administrative, sales, accounting, human resources, or driving work at or to and from a warehouse distribution center.

Q:  What is a quota under the Warehouse Distribution Worker Safety law?

A:  A quota is a work standard that requires an employee or a group of employees to perform at a specified productivity speed, complete a quantified number of tasks, handle or produce a quantified amount of material, or perform without a certain number of errors or defects, as measured at the individual or group level within a defined time period, or the employee's actions are categorized and measured between time performing tasks and not performing tasks, and the failure to complete a task performance standard may have an adverse impact on the employee's continued employment.

Q:  Do I have to share information about quotas with my employees?

A:  Yes, as an employer you are required to provide your employees with a written description of each quota they are expected to meet.

Q:  When am I required to share information about quotas with my employees?

A:  Effective Aug. 1, 2023, the employer must provide each employee a written description of each quota to which the employee is subject. Further information is provided in Minn. Stat. section 182.6526, section 1, subd. 2(c).

Q:  What information about quotas do I have to share with my employees?

A:  The written description of the quota employers must provide to their employees must include:

• the number of tasks to be performed, materials produced or handled;

• the applicable time-period in which the tasks must be performed; and

• any adverse employment actions that could result from failure to meet the quota.

Any time the written description of a quota is provided, it must be in plain, easily understandable language in English and any other language identified by each employee as their primary language.

Q:  Can I discipline or terminate an employee for failing to meet a quota I have not disclosed?

A:  No, the law prohibits employers from taking any adverse employment action, including disciplining or terminating an employee, for failing to meet a quota not previously disclosed in the manner required by the law.

Q:  Do I have to tell employees when a quota changes?

A:  Yes, the employer must provide an updated description of a quota within one day of any changes to the quota. The employer is prohibited from taking any adverse action against an employee based on a quota that has not been disclosed to the employee.

Q:  I have employees who primarily speak Spanish. Can I just provide them the written quota language in English?

A:  No, any time the employer provides the written description of a quota, it must be provided in English and any other language identified by each employee as their primary language.

Q:  Are there any restrictions about when a quota can be used?

A:  Yes, quotas cannot prevent an employee from exercising their rights under the law to eat a meal, take a rest break, pray or use the restroom facilities, including reasonable travel time to and from restroom facilities. Employers are prohibited from taking an adverse employment action against an employee, including disciplining or terminating an employee, if the quota in place prevents an employee from exercising these rights.

Q:  An employee has asked me for a written description of their quota and information about work-speed data. What do I have to provide?

A:  The law gives current employees the right to request a written description of each quota to which they are subject. The law also allows current employees the right to request certain information if they believe they have been disciplined as the result of failing to meet a quota or that meeting a quota caused a violation of their right to eat a meal, take a rest break, pray or use restroom facilities, including reasonable time to travel to and from restroom facilities. The information they are allowed to request is:

• a written description of the quota to which they are subject;

• a copy of the most recent 90 days of the employee’s own work-speed data; and

• a copy of the aggregate work-speed data for similar employees at the same establishment during the same time period.

Q:  Does the law require me to use quotas or monitor work-speed data?

A:  No, the law does not require employers to use quotas or monitor work-speed data.

Q:  Can I discipline or terminate an employee for requesting information about a quota or making a complaint? 

A:  No, such retaliation is unlawful, regardless of when it occurs. Additionally, the law provides that the employer formally document any disciplinary action.

Q:  How do you calculate an incidence rate for a particular worksite to determine if your company's incidence rate is 30% higher than the average yearly incidence rate for the relevant North American Industry Classification System (NAICS) code?

A:  An incidence rate of injuries and illnesses is computed from the following formula:  (Number of injuries and illnesses x 200,000) / Employee hours worked = Incidence rate. The Incidence Rate Calculator, from the Bureau of Labor Statistics, can be used to help calculate and provide more information about injury and illness incidence rates.

Q:  Where do you find the relevant North American Industry Classification System (NAICS) code and rates for a "Warehouse distribution center" as defined in Minn. Stat. section 182.6526, section 1, subd. 1(g)?

A:  To fine relevant NAICS codes and rates, see the U.S. Bureau of Labor and Statistics data.