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7 Steps to Ensuring Compliance with California’s Assembly Bill 701 (AB701)


California’s Assembly Bill 701 (AB701) has introduced crucial reforms to the warehouse industry, emphasizing worker rights, transparency, and improved working conditions. As businesses navigate the requirements of AB701, ensuring compliance becomes paramount. AB701 introduces several key provisions, including:

  • Mandating employers to disclose productivity quotas, production standards and potential health and safety impacts to warehouse workers
  • Prohibiting retaliation against employees who refuse to meet productivity quotas that violate AB701
  • Granting Cal/OSHA the authority to enforce AB701 and impose penalties for non-compliance

Below are seven key steps and considerations for businesses to ensure compliance with this new legislation.

1.    Understand the Requirements

To ensure compliance with AB701, it is essential for businesses to familiarize themselves with the law’s key provisions. This includes understanding the disclosure requirements for productivity quotas, production standards and potential health and safety impacts on warehouse workers. By grasping these requirements, businesses can align their practices with the law.

2.    Review and Revise Policies

Conduct a thorough review of existing policies, procedures, and practices to identify any areas that may be in conflict with AB701. Pay particular attention to productivity goals and standards, ensuring they align with the law’s guidelines. Revise policies as necessary to address compliance gaps and promote transparency and fairness.

3.    Communicate with Employees

Clear communication with employees is crucial for successful compliance. Educate your workforce about AB701, explaining the law’s provisions, their rights and the changes being implemented. Create channels for employees to voice concerns, ask questions and report any potential violations of AB701. Foster a culture of open communication and employee engagement to promote a safe and compliant work environment.

4.    Train Management and Supervisors

Provide comprehensive training to management and supervisors on AB701 and its implications for warehouse operations. Equip them with the knowledge and tools to implement the law’s requirements effectively. Training should cover topics such as proper communication, monitoring worker health and safety, preventing retaliation and addressing any potential conflicts between productivity goals and AB701.

5.    Conduct Regular Audits and Assessments

Establish a system for regular audits and assessments to monitor compliance with AB701. This involves reviewing and evaluating practices, policies and procedures to ensure ongoing adherence to the law. Assessments should identify any emerging compliance gaps and provide a basis for implementing corrective measures promptly.

Conducting a business assessment is vital for several reasons:

  • Understanding Compliance Gaps: An assessment helps identify areas where a business may fall short of AB701 requirements. This includes reviewing productivity goals, production standards, worker health and safety protocols and policies related to retaliation.
  • Developing Action Plans: Assessments enable businesses to develop actionable plans to address compliance gaps. These plans may involve revising policies, implementing new training programs, enhancing communication channels and adjusting productivity measures.
  • Employee Engagement and Communication: Assessments provide an opportunity to engage with employees and communicate changes resulting from AB701. Including employees in the assessment process fosters transparency, demonstrates a commitment to their rights and encourages a culture of collaboration.
  • Ongoing Compliance Monitoring: AB701 compliance requires ongoing monitoring. Regular assessments help businesses track their adherence to the law, identify emerging compliance gaps and make necessary adjustments to ensure continuous compliance.

A business assessment involves several steps to ensure compliance:

  • Reviewing existing policies, procedures and practices to identify areas of non-compliance
  • Engaging legal professionals or HR consultants with expertise in AB701 to provide guidance and interpretation of the law
  • Collaborating to gather insights and feedback on existing practices and potential areas for improvement
  • Developing a comprehensive action plan that addresses compliance gaps, includes employee training and establishes protocols for monitoring and reporting

6.    Seek Expert Advice

Given the complexity of labor laws and the potential legal implications of non-compliance, it is important to seek guidance from experts well-versed in AB701. Consult with enVista to for an assessment which will ensure accurate interpretation of the law and to address any specific concerns or challenges related to your business.

7.    Stay Updated and Engaged

Monitor regulatory developments and industry best practices to ensure your compliance efforts remain up to date. Engage with industry associations, trade groups and legal experts to stay informed and proactive in your compliance efforts.

By understanding the law’s requirements, reviewing and revising policies, communicating with employees, providing adequate training, conducting regular audits and assessments and seeking expert guidance, businesses can successfully navigate AB701 and create a fair and safe working environment for their employees. Compliance with AB701 demonstrates a commitment to worker rights, strengthens your business’s reputation and contributes to a more equitable industry. Contact enVista to begin your assessment today.

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