Significant new regulations are coming for warehouse distribution centers in Connecticut. Following the 2026 legislative session, Senate Bill 298 (S.B. 298) has been signed into law, establishing final standards for production quotas. This legislation is designed to ensure that performance metrics do not compromise worker safety or legal rights to rest and meal periods.
While the law takes effect on July 1, 2026, employers must begin preparing now to meet specific notice and recordkeeping deadlines.
Coverage Thresholds
The law applies to a more specific group of large employers than previously proposed. An employer is covered under S.B. 298 if they operate warehouse distribution centers and meet either of the following criteria:
- They employ 250 or more employees at a single warehouse distribution center in Connecticut.
- They employ a total of 1,000 or more employees across one or more warehouse distribution centers in the state.
New Prohibitions on Quotas
S.B. 298 introduces specific limitations on how performance standards can be structured. Under the final law, production quotas must not:
- Prevent an employee from complying with state meal break laws.
- Interfere with an employee’s use of bathroom facilities, including travel time.
- Set a performance standard that measures total output over an increment of time shorter than the employee’s workday.
- Set a performance standard based solely on ranking an employee’s performance in relation to other employees.
Required Disclosures and Deadlines
Transparency is a core component of the new law. Covered employers are required to provide a written description of all applicable quotas, including potential consequences for failing to meet them, according to the following timeline:
- Existing Employees: Must receive written notice by August 1, 2026.
- New Hires: Must receive written notice upon hire for all employees joined after July 1, 2026.
- Quota Changes: Employees must be notified of any changes to existing production quotas.
Recordkeeping and Enforcement
Employers must maintain detailed records, including individual work speed data and aggregated data for similar employees at the same site. Both current and former employees have the right to request this information.
The law also grants employees and the state attorney general the right to file suit for violations. Non-compliance may result in civil penalties, damages, and other legal remedies. Additionally, employers are strictly prohibited from taking adverse action against an employee for failing to meet a quota that violates these standards or was not provided in writing.
Next Steps for Employers
To align with the final requirements of S.B. 298, covered Connecticut employers should:
- Verify Coverage: Confirm if your facility meets the 250-employee single-site or 1,000-employee multi-site threshold.
- Review Metric Structures: Ensure your productivity standards do not measure output in increments shorter than a full workday and are not based exclusively on peer rankings.
- Prepare Disclosure Notices: Draft the required written descriptions for all production quotas to ensure they are ready for distribution by the August 2026 deadline.
- Update Recordkeeping Systems: Ensure your digital or manual systems can store individual and aggregate work speed data for potential employee requests.
