On Sept. 22, California Gov. Gavin Newsom signed into law Assembly Bill 3234, which requires employers to disclose the results of audits on child labor practices. Specifically, effective Jan. 1, 2025, AB 3234 requires employers that voluntarily conduct a social compliance audit for the purposes of determining whether child labor is involved in the employer’s operations or practices to publish the audit findings on the company website.
AB 3234 offers little guidance on these disclosure duties. Indeed, it leaves critical compliance details unclear, including, for example, the deadline for posting reports after an audit, how long the report must remain online, and any penalties for noncompliance. There may be guidance from the California Labor Commissioner clarifying these and other unclear points. Until then, employers will face the difficult task of complying with a law that is ambiguous.
To be clear, AB 3234 does not mandate that employers engage in audits. It only places a disclosure obligation on those employers that voluntarily conduct audits to determine whether their operations comply with child labor laws. This required public disclosure of audits might now deter employers from voluntarily engaging in audits for fear of exposing themselves to litigation or governmental scrutiny as a consequence of publishing damaging audit results.
Read the full article
California Imposes Disclosure Obligations for Child Labor Audits
Littler via SHRM | Dec 2024
Read the text of AB 3234
Effective: 1/1/2025
What do I need to consider when hiring a minor?
Toolkit: Managing Employment of Minors in California
SHRM
Law Articles
The statute is limited, however, to state and federal labor law audits. Assessments that relate purely to compliance with foreign or international law, or an assessment of a facility’s performance against voluntary standards, are therefore beyond the scope of AB 3234.
This suggests that audits of a company’s foreign supply chain would not require disclosure. For example, although the federal Tariff Act prohibits importing merchandise made by forced or indentured child labor, these restrictions are not part of federal labor law, which is the black-letter scope of AB 3234.
Beginning in 2025, California employers must disclose child labor findings of labor law compliance audits
DLA Piper | Dec 2024
So if you choose to audit your business for social compliance, what five things must you include in your report?
- The year, month, day, and time that the audit was conducted, and whether the audit was conducted during a day or night shift.
- Whether the business does or does not engage in, or support the use of, child labor.
- A copy of any written policies and procedures the business has regarding child employees.
- Whether the business exposes children to any workplace situations that are hazardous or unsafe to their physical and mental health and development.
- Whether children work within or outside regular school hours, or during night hours, for the business.
New California Law Enacts Requirements for Voluntary Social Compliance Audits: 5 Things Employers Must Report
Fisher Phillips | Sep 2024
As defined in the Bill, a child is a person under 18. Child labor is work performed by a child in violation of state or federal law. A social compliance audit is defined as a voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether they are in compliance with state and federal labor laws. This would include but not be limited to wage and hour and health and safety regulations, including those regarding child labor.
Another New California Corporate Social Responsibility Disclosure Requirement on the Horizon
Ropes & Gray | Sep 2024
Related Resources
Information on Minors and Employment
California DIR
Child Labor
DOL
Related SHRM Express Request
Employing Teens | Child Labor Laws
SHRM Ask An Advisor
Get expert help on a wide range of HR topics. Access experienced, certified HR Knowledge Advisors by phone, chat & email
Connect with An Advisor now: https://www.shrm.org/hrhelp
SHRM Members' Survey
Tell us what you think about the Express Request self-service feature in a few quick questions.
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.
Related Content
HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.