Just signed into law this past weekend by the Governor and having received near unanimous bipartisan support, AB 3234 is aimed at protecting minor employees. Specifically, it requires employers to post on their website the findings of a social compliance audit that relates to the employer’s compliance with child labor laws.
What is a “social compliance audit,” you ask? Well, according to the bill, it is a “voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws, including, but not limited to, wage and hour and health and safety regulations, including those regarding child labor.” Over the last few years, many employers have committed to conducting social compliance audits, in part to improve employee recruitment and retention.
Of course, California law imposes a number of rules regarding employing minors, including, among other things, setting minimum age limits for hiring depending on the industry and duties, specifying the days, times, and number of hours they can work, the times during which they can work, and dictating their wages. Violations of these provisions can result in various civil and criminal penalties.
AB 3234 requires employers that voluntarily agree to conduct a social compliance audit to post a link to the audit report on its website detailing the organization’s compliance with child labor laws. The report must contain the following information:
- The year, month, day, and time on which the audit was conducted. (The time is important for employers that have day and night shifts.)
- Whether the employer used child labor.
- A copy of any written policies and procedures regarding minor employees.
- Whether the employer exposed children to any workplace situations that may have been hazardous or unsafe to their physical and mental health and development.
- Whether children worked within or outside regular school hours, or during night hours.
- A statement that the auditor used for the audit is not a government agency and not authorized to verify compliance with state and federal labor laws or other health and safety regulations.
Notably, AB 3234 does not mandate that employers conduct social compliance audits, or specify a deadline for posting any audit reports. It also does not impose any penalties for non-compliance.
According to Assemblymember Ortega, the author of the bill, “AB 3234 simply requires that employers publicly post the findings of an audit that they have voluntarily participated in. This bill provides transparency, allowing consumers to support companies that follow labor laws and company shareholders to know how they are performing and where they may need to improve. AB 3234 promotes equity by increasing transparency and allowing all consumers to ‘shop smart’ and support ethical businesses that follow labor laws.”
We want to be good corporate citizens. However, it’s important to understand the consequences of actions like conducting a social compliance audit. If you have questions, talk to your favorite employment attorney.
