FIRST REGULAR SESSION

HOUSE BILL NO. 1550 103RD GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVE WOODS.

3040H.02I JOSEPH ENGLER, Chief Clerk

AN ACT To amend chapter 285, RSMo, by adding thereto six new sections relating to employment practices involving warehouse distribution centers, with penalty provisions.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Chapter 285, RSMo, is amended by adding thereto six new sections, to be 2 known as sections 285.2000, 285.2003, 285.2006, 285.2009, 285.2012, and 285.2015, to read 3 as follows: 285.2000. For the purposes of sections 285.2000 to 285.2015, the following terms 2 shall mean: 3 (1) "Affiliate", a person that directly or indirectly, through one or more 4 intermediaries, controls, is controlled by, or is under common control with another 5 person. For the purposes of this subdivision, "control" means the possession, directly or 6 indirectly, of more than fifty percent of the power to direct or cause the direction of the 7 management and policies of a person, whether through the ownership of voting shares, 8 by contract, or otherwise; 9 (2) "Aggregated data", information that an employer has combined or collected 10 in summary or other form such that the data cannot be identified with any individual; 11 (3) "Defined time period", any unit of time measurement less than or equal to 12 the duration of an employee's shift, and includes hours, minutes, and seconds and any 13 fraction thereof; 14 (4) "Department", the department of labor and industrial relations;

EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1550 2

15 (5) "Designated employee representative", any employee representative 16 including, but not limited to, an authorized employee representative that has a 17 collective bargaining relationship with the employer; 18 (6) "Director", the director of the department of labor and industrial relations 19 or the director's designee; 20 (7) "Employee", an employee who is not exempt under subdivision (3) of section 21 290.500 and works at a warehouse distribution center; 22 (8) "Employee work-speed data", information an employer collects, stores, 23 analyzes, or interprets relating to an individual employee's performance of a quota 24 including, but not limited to, quantities of tasks performed, quantities of items or 25 materials handled or produced, rates or speeds of tasks performed, measurements or 26 metrics of employee performance in relation to a quota, and time categorized as 27 performing tasks or not performing tasks. Employee work-speed data does not include 28 qualitative performance assessments, personnel records, or itemized wage statements 29 pursuant to department rules, except for any content of those records that includes 30 employee work-speed data as defined in this subdivision; 31 (9) "Employer", a person who directly or indirectly, or through an agent or any 32 other person, including through the services of a third-party employer, temporary 33 services, or staffing agency, independent contractor, or any similar entity, at any time, 34 employs or exercises control over the wages, hours, or working conditions of one 35 hundred or more employees at a single warehouse distribution center in the state or one 36 thousand or more cumulative employees at one or more warehouse distribution centers 37 in the state. For the purposes of determining the number of employees employed at a 38 single warehouse distribution center or cumulatively at one or more warehouse 39 distribution centers, all employees employed directly or indirectly, or through a staffing 40 agency or any other person in a contractual agreement with the employer, and all 41 employees employed by an employer and its affiliates shall be counted. For the 42 purposes of determining responsible employers, all agents or other persons and affiliates 43 shall be deemed employers and are jointly and severally responsible for compliance with 44 sections 285.2000 to 285.2015; 45 (10) "Person", an individual, corporation, partnership, limited partnership, 46 limited liability partnership, limited liability company, business trust, estate, trust, 47 association, joint venture, agency, instrumentality, or any other legal or commercial 48 entity, whether domestic or foreign; 49 (11) "Quota", a work performance standard, whether required or 50 recommended, where: HB 1550 3

51 (a) An employee is assigned or required to perform at a specified productivity 52 speed, or perform a quantified number of tasks, or to handle or produce a quantified 53 amount of material, within a defined time period and under which the employee may 54 suffer an adverse employment action if they fail to complete the performance standard; 55 or 56 (b) An employee's actions are categorized as time performing tasks, where the 57 employee may suffer an adverse employment action if they fail to meet the performance 58 standard; 59 (12) "Warehouse distribution center", an establishment engaged in activities as 60 defined by any of the following North American Industry Classification System 61 (NAICS) codes, however such establishment is denominated: 62 (a) 493 for warehousing and storage, but does not include 493130 for farm 63 product warehousing and storage; 64 (b) 423 for merchant wholesalers, durable goods; 65 (c) 424 for merchant wholesalers, nondurable goods; or 66 (d) 454110 for electronic shopping and mail-order houses. 285.2003. 1. An employer shall provide to each employee, upon hire, or within 2 thirty days of August 28, 2025, a written description of: 3 (1) Each quota to which the employee is subject, including the quantified 4 number of tasks to be performed or materials to be produced or handled within a 5 defined time period; 6 (2) Any potential adverse employment action that could result from failure to 7 meet each quota; and 8 (3) Any incentives or bonus programs associated with meeting or exceeding each 9 quota. 10 2. Whenever there is a change to a quota that results in a different quota than 11 the most recent written description provided to the employee, the employer shall: 12 (1) Notify the employee orally or in writing as soon as possible and before the 13 employee is subject to the new quota; and 14 (2) Provide the employee with an updated written description of each quota to 15 which the employee is subject within two business days of the quota change. 16 3. Whenever an employer takes an adverse action against an employee in whole 17 or in part for failure to meet a quota, the employer shall provide that employee with the 18 applicable quota for the employee and the personal work-speed data for the employee 19 that was the basis for the adverse action. HB 1550 4

20 4. The written description shall be understandable, in plain language, and in the 21 employee's preferred language. The department may adopt rules regarding the format, 22 plain language, and language access requirements for the written description. 23 5. (1) The time period considered in a quota, including time designated as 24 productive time or time on task, shall include: 25 (a) Time for rest breaks and reasonable time to travel to designated locations for 26 rest breaks; 27 (b) Reasonable travel time to on-site designated meal break locations. Meal 28 breaks are not considered time on task or productive time unless the employee is 29 required by the employer to remain on duty on the premises or at a prescribed worksite 30 in the interest of the employer; 31 (c) Time to perform any activity required by the employer in order to do the 32 work subject to any quota; 33 (d) Time to use the bathroom, including reasonable travel time; and 34 (e) Time to take any actions necessary for the employee to exercise the 35 employee's right to a safe and healthful workplace including, but not limited to, time to 36 access tools or safety equipment necessary to perform the employee's duties. 37 (2) Reasonable travel time shall include consideration of the architecture and 38 geography of the facility and the location within the facility that the employee is located 39 at the time. 40 6. (1) A quota violates sections 285.2000 to 285.2015 if the quota: 41 (a) Does not provide sufficient time as required under subsection 5 of this 42 section; 43 (b) Prevents the performance of any activity required by the employer for the 44 employee to do the work subject to any quota; 45 (c) Prevents the performance of any activity related to occupational safety and 46 health required by the employer for the employee to do the work subject to any quota; 47 or 48 (d) Exposes an employee to occupational safety and health hazards in violation 49 of the requirements of state or federal law and the applicable rules or regulations. 50 (2) An employee is not required to meet a quota that violates the provisions of 51 sections 285.2000 to 285.2015. 52 (3) An employer shall not take adverse action against an employee for failing to 53 meet a quota that violates sections 285.2000 to 285.2015 or that was not disclosed to the 54 employee as required under the provisions of sections 285.2000 to 285.2015. HB 1550 5

55 (4) All provisions of section 285.2006 apply to any person who complains to the 56 employer, the director, or any local, state, or federal governmental agency or official 57 related to a quota alleging any violations of sections 285.2000 to 285.2015. 58 7. (1) An employer shall establish, maintain, and preserve contemporaneous, 59 true, and accurate records of the following: 60 (a) Each employee's own personal work-speed data; 61 (b) The aggregated work-speed data for similar employees at the same 62 warehouse distribution center; and 63 (c) The written descriptions of each quota the employee was provided, as 64 required under this section. 65 (2) (a) The required records shall be maintained and preserved throughout the 66 duration of each employee's period of employment and for the period required by this 67 subsection. 68 (b) Except as required under paragraph (c) of this subdivision, subsequent to an 69 employee's separation from the employer, records relating to the six-month period prior 70 to the date of the employee's separation from the employer shall be preserved for at 71 least one year from the date of the employee's separation. 72 (c) Where an employer has taken adverse action against an employee in whole or 73 in part for failure to meet a quota, the employer shall preserve the records relating to 74 the basis for the adverse action for at least three years from the date of the adverse 75 action. 76 (d) The employer shall make records available to the director upon request. 77 (3) Nothing in this subsection requires an employer to collect or keep such 78 records if the employer does not use quotas or monitor work-speed data. 79 (4) An employer who fails to allow adequate inspection of records in an 80 inspection by the department within a reasonable time period shall not use such records 81 in any appeal to challenge the correctness of any citation and notice issued by the 82 department. 83 8. (1) An employee has the right to request, at any time, a written description of 84 each quota to which the employee is subject, a copy of the employee's own personal 85 work-speed data for the prior six months, and a redacted copy of the prior six months of 86 aggregated work-speed data for similar employees at the same warehouse distribution 87 center. 88 (2) A former employee has the right to request, within one year subsequent to 89 the date of his or her separation from the employer, a written description of the quota to 90 which the employee was subject as of the date of his or her separation, a copy of the 91 employee's own personal work-speed data for the six months prior to his or her date of HB 1550 6

92 separation, and a redacted copy of aggregated work-speed data for similar employees at 93 the same warehouse distribution center for the six months prior to their date of 94 separation. 95 (3) An employer shall provide records requested under this subsection at no cost 96 to the employee or former employee. 97 (4) An employer shall provide records requested under this subsection as soon as 98 practicable and subject to the following: 99 (a) Requested records of written descriptions of a quota shall be provided no 100 later than seven business days following the date of the receipt of the request; and 101 (b) Requested personal work-speed data and aggregated work-speed data shall 102 be provided no later than seven business days following the date of the receipt of the 103 request. 104 (5) Nothing in this subsection requires an employer to use quotas or monitor 105 work-speed data. An employer that does not use quotas or monitor work-speed data 106 has no obligation to provide records under this section. 285.2006. 1. (1) A person including, but not limited to, an employer, his or her 2 agent, or person acting as or on behalf of a hiring entity, or the officer or agent of any 3 entity, business, corporation, partnership, or limited liability company, shall not 4 discharge or in any way retaliate, discriminate, or take adverse action against an 5 employee or former employee for exercising any rights established under sections 6 285.2000 to 285.2015, or for being perceived as exercising rights established under such 7 sections including, but not limited to: 8 (a) Initiating a request for information about a quota or personal work-speed 9 data; and 10 (b) Making a complaint to the employer, the director, or any local, state, or 11 federal governmental agency or official, related to a quota that is allegedly in violation 12 of sections 285.2000 to 285.2015. 13 (2) An employee or former employee need not explicitly refer to sections 14 285.2000 to 285.2015 or the rights established in these sections to be protected from an 15 adverse action. The protection provided under this section applies to former employees 16 and to employees who mistakenly but in good faith allege violations of 285.2000 to 17 285.2015. 18 (3) (a) If a person takes adverse action against an employee or former employee 19 within ninety days of the employee engaging or attempting to engage in activities 20 protected by sections 285.2000 to 285.2015, there is a rebuttable presumption that the 21 adverse action is a retaliatory action in violation of sections 285.2000 to 285.2015. 22 (b) The presumption may be rebutted by a preponderance of the evidence that: HB 1550 7

23 a. The action was taken for other permissible reasons; and 24 b. The engaging or attempting to engage in activities protected by sections 25 285.2000 to 285.2015 was not a motivating factor in the adverse action. 26 (4) The department shall carry out and enforce the provisions of sections 27 285.2000 to 285.2015 under the procedures established and any applicable rules. 285.2009. 1. (1) An employee may file a complaint with the department alleging 2 a violation of sections 285.2000 to 285.2015 or the applicable rules. The department 3 shall investigate the complaint or it may designate the attorney general as its agent to 4 investigate the complaint. The department shall not investigate any such alleged 5 violation of rights that occurred more than three years before the date that the employee 6 filed the complaint. 7 (2) If an employee files a timely complaint with the department, the department 8 shall investigate the complaint and issue either a citation and notice of assessment or a 9 determination of compliance within ninety days after the date on which the department 10 received the complaint, unless the complaint is otherwise resolved. The department may 11 extend the period by providing advance written notice to the employee and the employer 12 setting forth good cause for an extension of the period and specifying the duration of the 13 extension. 14 (3) The department shall send the citation and notice of assessment or the 15 determination of compliance to both the employer and the employee by service of 16 process or using a method by which the mailing can be tracked or the delivery can be 17 confirmed to their last known addresses. 18 2. If the department's investigation finds that the employee's allegation cannot 19 be substantiated, the department shall issue a determination of compliance to the 20 employee and the employer detailing such finding. 21 3. The director may initiate an investigation without an employee's complaint to 22 ensure compliance with sections 285.2000 to 285.2015. 23 4. The department may request an employer perform a self-audit of any records 24 relating to sections 285.2000 to 285.2015 which shall be provided within a reasonable 25 time. Reasonable timelines shall be specified in the self-audit request. The department 26 shall determine reasonable time based on the number of affected employees and the 27 period of time covered by the self-audit. The records examined by the employer in 28 order to perform the self-audit shall be made available to the department upon request. 29 5. Upon the department's request, an employer shall notify affected employees in 30 writing that the department is conducting an investigation. The department may 31 require the employer to include a general description of each investigation as part of the 32 notification, including the allegations and whether the notified employee may be HB 1550 8

33 affected. The employer may consult with the department to provide the information for 34 the description of the notification or investigation. 35 6. If the department determines that the employer has violated a requirement of 36 sections 285.2000 to 285.2015 or any rule adopted under the provisions of such sections, 37 the department also may order the employer to pay a civil penalty of not less than two 38 hundred fifty dollars. The first violation shall not exceed two hundred fifty dollars. The 39 department may, at any time, waive or reduce any civil penalty assessed against an 40 employer under this section if the department determines that the employer has taken 41 corrective action to remedy a violation. Th