With the passage of House Bill 4127, which took effect on January 1, 2025, Oregon added a new layer of regulatory oversight for employers operating large warehouse distribution centers. The law imposes significant obligations around how productivity quotas are communicated and monitored, and it increases exposure to penalties for noncompliance. For employers, especially those leveraging performance metrics or algorithm-driven tracking systems, HB 4127 represents a meaningful shift in how warehouse labor must be managed.
A New Compliance Framework for Quotas
At the heart of the new law is a requirement that warehouse employers disclose any productivity quotas that apply to workers. A "quota" is broadly defined as any performance expectation that requires an employee to complete a certain number of tasks, handle materials, or meet a speed benchmark within a specific time frame, and where failure to meet that standard could trigger an adverse employment action.
Under HB 4127, employers must provide written notice of applicable quotas at the time of hire, within two days of any quota changes, and whenever an employee is subject to an adverse employment action based on that quota. The information must be specific and include the number of tasks to be completed within a defined period as well as the consequences for nonperformance. Employers must also ensure that this notice is delivered in the language typically used to communicate with the employee.
Importantly, if a quota is not documented and disclosed as required, the employer may not take any adverse action based on it. This provision effectively prohibits enforcing undocumented performance standards, a key operational change for many employers accustomed to fluid or informal productivity targets.
Expanded Record-keeping and Employee Access Rights
HB 4127 also introduces new recordkeeping responsibilities tied to performance data. If an employer tracks "work speed data," such as task counts, production speed, or time spent on tasks, that data must be made available upon request to both current and former employees. The law gives employees access to:
- Written documentation for any quotas in effect, and
- Their personal work speed data for the 90 days preceding the request (or for former employees, the 90 days before their separation).
- Former employees have up until three years from the date of separation of employment to request this information.
Requests must be fulfilled at no cost and within 21 calendar days. Employers that do not collect work speed data are not required to start, but if they do track such information, they must be prepared to produce it upon request.
These access rights create a new compliance obligation that may require operational adjustments, particularly for employers using performance-monitoring software or third-party workforce management tools. Ensuring the right data is stored, retrievable, and tied to individual employees is now a critical consideration.
Limited Carve-Outs for Unionized Employers
Employers covered by collective bargaining agreements may be exempt from Sections 3 and 4 of the law if their agreements include:
- Negotiated performance evaluation standards, and
- Record access rights that are substantially equivalent to those established by HB 4127.
Enforcement and Exposure to Penalties
The Oregon Bureau of Labor and Industries (BOLI) is authorized to enforce the new law, and violations may result in civil penalties of up to $1,000 per infraction. The law also allows employees to file complaints for violations related to undisclosed quotas or failures to provide required records.
What Employers Should Do Now
For warehouse employers in Oregon, HB 4127 should prompt an immediate review of workforce practices. Key action items include:
- Documenting all productivity quotas clearly and distributing them in compliance with the law.
- Assessing current tracking systems to determine whether work speed data is being collected and stored in a way that allows for employee access.
- Training HR and supervisory staff on the new documentation requirements and restrictions around disciplinary action.
- Updating onboarding protocols to ensure quota notices are delivered at hire and maintained in personnel files.
- Preparing for potential records requests from former employees, which may arrive up to three years after separation.
Bottom Line for Employers
House Bill 4127 adds significant compliance responsibilities for warehouse employers in Oregon, especially those using performance quotas or tracking employee productivity data. The law prioritizes transparency and record access and creates real risk for employers who fail to document quotas or discipline employees based on undocumented standards. Employers should take immediate steps to update policies, adjust recordkeeping systems, and ensure internal procedures align with the new statutory requirements.