California has introduced Assembly Bill 3234, establishing new requirements for employers who voluntarily undergo social compliance audits. This legislation, effective January 1, 2025, aims to enhance transparency and accountability in labor practices, with a specific emphasis on child labor.
Under this law, employers who voluntarily undergo social compliance audits must post a clear and conspicuous link on their website to a report detailing their compliance with child labor laws. The report must include specific information, such as the date and time of the audit, whether any instances of child labor were identified, and the employer’s policies regarding child employees.
A “social compliance audit” is defined by the law as a voluntary, nongovernmental inspection intended to evaluate compliance with state and federal labor laws.
The law also includes recordkeeping requirements, mandating that employers retain audit reports and related documentation for at least four years.
Next Steps
Employers participating in social audits should prepare comprehensive reports of audit findings, including all required information. Employers with minor employees should also ensure they maintain written policies and procedures related to child labor.
Covered employers should be prepared to update their websites to include a clear link to the audit report.
While it is unclear if there are specific penalties for non-compliance and many unanswered questions about this law remain, this requirement may increase scrutiny from regulators and the public. Employers considering their risk tolerance are encouraged to consult legal counsel for further guidance.
HR Works will continue to monitor this topic and provide updated guidance when it becomes available.
