By: Anthony Califano, Christina Duszlak, Reeves Gillis, and Nicole Ricker

Seyfarth Synopsis: Connecticut’s new warehouse quota law—effective July 1, 2026—requires employers operating warehouse distribution centers to disclose productivity quotas to non-exempt workers and to maintain detailed work speed data. Employers who fail to provide the required notice may not take an adverse action against an employee for failing to satisfy a quota. The law also prohibits quotas that interfere with meal or bathroom breaks and creates strong anti- retaliation protections for employees. With steep penalties and a private right of action, covered employers must act quickly to review their quota practices, prepare written disclosures, and implement compliant data tracking and notification systems.
On March 3, 2026, Connecticut enacted emergency legislation (S.B. 298) requiring employers that operate warehouse distribution centers in the state to make certain disclosures to non-exempt employees who are subject to production quotas. This law becomes effective on July 1, 2026, but employers have until August 1, 2026 to distribute mandatory notices. Violation of the law has significant consequences for employers, including damages incurred by impacted employees due to employer violations, civil penalties, and attorney’s fees. For covered employers, preparation and caution are advisable.
What this Law Requires
Covered employers must provide employees with a written description of each quota to which they are subject, including any potential adverse employment action that may result from failure to meet each quota. Current employees must receive this information by August 1, 2026, while employees hired after that date must receive the required notice upon hire.
Whenever an employer makes changes to an existing quota, the employer must notify affected employees as soon as practicable and before the effective date of the new quota. The employer must also provide a written description of the new quota within two business days after the change is made, either directly to the employee or by email.
Covered employers must also establish, maintain, and preserve (for a period of 3 years) records of the following: (1) each employee’s work speed data, (2) the aggregated work speed data for similar employees at the same warehouse distribution center, and (3) the written description of the quota provided to each employee. An employer need not retain records of such data if the employer does not assign or require quotas or collect, store, analyze or interpret work speed data.
If an employee believes that satisfying a quota would violate the law, the employee can request copies of these retained records, including each quota to which they are subject and both their individual and the aggregated work speed data from the prior 90 days. The employer must provide the requested records within 10 calendar days following the employee’s request, and the records must be provided both in English and in the requesting employee’s primary language. The law does not expressly require that an employee’s request for such records be in writing.
What this Law Prohibits
Productivity quotas may not interfere with an employee’s meal breaks or their use of bathroom facilities (including reasonable travel to and from those facilities). Further, quotas may not set a performance standard that measures an employee’s total output over an increment of time that is shorter than the employee’s workday or that is based solely on a ranking of the employee’s performance in relation to the performance of other employees.
An employer may not take an adverse action against an employee for failing to satisfy a quota that violates these restrictions or that was not properly disclosed to the employee in accordance with the law’s requirements.
Also, an employer cannot retaliate against an employee for requesting the quota information outlined above or for filing a civil action under the law. The law creates a rebuttable presumption of retaliation for adverse action occurring within 90 days of the employee’s first records request of the calendar year or within 90 days of the employee’s filing of a lawsuit. If the rebuttable presumption applies, the employer carries the burden of proof to establish, by clear and convincing evidence, that the adverse action was not retaliatory.
How this Law Defines Employee, Employer, Quota, and Warehouse Distribution Center
Under this new law, an “employee” is defined as a non-exempt individual who is employed at a warehouse distribution center. Warehouse employees who are exempt from minimum wage and overtime requirements are therefore not protected by this law even if subject to quotas. Non-exempt status shall be determined under this law by reference to the requirements of the federal Fair Labor Standards Act. Regardless of non-exempt and exempt status, drivers and couriers traveling to or from a warehouse distribution center are excluded from the definition of “employee” under this law.
And “Employer” is defined under this law as an individual or business entity that “directly or indirectly” “employs or exercises control over the wages, hours or working conditions of two hundred fifty or more employees at a single warehouse distribution center in [Connecticut] or one thousand or more employees at any one or more warehouse distribution centers in [Connecticut].”
For purposes of this law, a “quota” is defined broadly as a performance standard where:
- An employee is required to perform at a specified productivity speed or a quantified number of tasks or to handle or produce a quantified amount of within a defined time period;
- Actions by an employee are categorized or measured between time performing tasks and not performing tasks within a defined time period;
- Increments of time within a defined time period during which an employee is or is not doing a particular activity are measured, recorded or tallied, or
- An employee’s performance is ranked in relation to the performance of other employees.
Use of the word “or” in this part of the statute is noteworthy because the disjunctive construction means that any of the above amounts to a “quota.” It is not necessary for all of them to be present for the law to apply.
Unlike analogous statutes in other states, such as California, Oregon, and Washington, the language of this Connecticut law does not appear to require the performance standard to be tied to an adverse employment action in order for it to meet the definition of a “quota.” This means that even when an employee’s failure to meet a performance standard does not have the potential to lead to discipline, a description of that standard must still be provided to the employee.
Also, a “warehouse distribution center” is defined under this law as a warehouse or warehouse complex owned or leased by a company with operations that fall within the scope of certain North American Industry Classification System (“NAICS”) Codes. The NAICS codes classify business establishments by their primary economic activity and are used by the federal government to analyze and publish statistical data about the economy. Establishments that own or lease a warehouse or warehouse complex in Connecticut include:
- General Warehousing and Storage (NAICS Code 493110);
- Merchant Wholesalers, Durable Goods (NAICS Code 423);
- Merchant Wholesalers, Nondurable Goods (NAICS Code 424);
- Electronic Shopping and Mail-Order Houses (NAICS Code 454110);
- Couriers and Express Delivery Services (NAICS Code 492110);
- Warehouse Clubs and Supercenters (NAICS Code 452311);
- All Other General Merchandise Stores (NAICS Code 452319); and
- Home Centers (NAICS Code 444110).
An employer can determine whether its business falls into any of these classifications by looking to the NAICS code on its IRS filings or by searching filings for its Connecticut entities here.
Consequences of Non-Compliance by Covered Employers
Employers that violate these new requirements may face civil penalties starting at $1,000 per violation and increasing up to $3,000 per violation.
The law also creates a private right of action for aggrieved current and former employees, who can recover damages, civil penalties, and injunctive relief. Attorney’s fees and costs are among the damages available to a prevailing plaintiff in an action under this law. And the Connecticut Attorney General is authorized to bring claims on behalf of groups of employees.
What Employers Should Do to Prepare
Employers should consider taking proactive steps to prepare for compliance ahead of the July 1, 2026 effective date and the August 1, 2026 notice deadline. Among those potential steps are the following:
- Evaluate coverage under this law based on the classification of facilities, number of employees, and quota practices.
- If covered, prepare written quota disclosures for impacted current and prospective employees prior to the August 1, 2026 compliance deadline.
- Develop compliant productivity and disciplinary standards.
- Establish a system for providing written descriptions of new quotas to affected employees whenever quotas are updated.
- Evaluate or develop protocols for gathering, maintaining, and preserving work speed data.
- Develop protocols for compliant responses to employee record requests under this law.






