USA: Assembly Bill 3234: New Requirements for Employers Conducting Social Compliance Audits

On September 22, 2024, California Governor Gavin Newsom signed Assembly Bill (AB) 3234 into law which imposes more transparency requirements for employers that audit their child labor practices.  The bill will take effect on January 1, 2025.

Under AB 3234, any employer that has voluntarily subjected its business to a “social compliance audit” to determine in whole or in part if child labor is involved in the employer’s operations or practices, must post a link on its website to a report detailing the findings of the audit.  AB 3234 defines “social compliance audit” as a voluntary, nongovernmental inspection or assessment of an employer’s operations and practices to verify that it complies with state and federal labor laws, including health and safety regulations regarding child labor.

AB 3234 provides that the following information must be included within the compliance report:

• The year, month, day, and time the audit was conducted, and whether the audit was conducted during a day shift or night shift;
• Whether the employer engages in or supports the use of child labor;
• A copy of the employer’s written policies and procedures regarding child employees;
• Whether the employer 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 employer; and
• A statement that the auditing company is not a government agency and is not authorized to verify compliance with state and federal labor laws or other health and safety regulations.

Given this upcoming change in the law, legal and compliance teams should assess whether their companies are subject to the AB 3234 disclosure requirements.  If you have questions about AB3234 or related issues, contact a Jackson Lewis attorney to discuss.