The 12 Days of California Labor and Employment Series – Day 9 "New Social Audit Requirements for Child Labor"

In the spirit of the season, we are using our annual "12 Days of California Labor and Employment" blog series to address new California laws and their impact on employers. On the ninth day of the holidays, my labor and employment attorney gave to me nine ladies dancing and AB 3234.

What is AB 3234?

AB 3234 requires an employer that has voluntarily subjected itself to a social compliance audit to determine if child labor was involved in the employer’s operations to post a clear and conspicuous link to the audit report on its website.

"Clear and conspicuous" is defined as a larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks that call attention to the language.

What is a Social Compliance Audit?

A "social compliance audit" under AB 3234 is defined as 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.

What Does the Report Require?

The bill would require that the report include:

• The year, month, day, and time the audit was conducted, as well as whether the audit was conducted during a day shift or night shift.
• Whether the employer did or did not engage in or support the use of child labor.
• A copy of any written policies and procedures the employer has and had regarding child employees.
• Whether the employer exposed children to any workplace situations that were hazardous or unsafe to their physical and mental health and development.
• Whether children worked within or outside regular school hours or during night hours for the employer.
• 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.

The Unknown

At this time, the law does not mention when an employer is required to post a link to such a report. In addition, voluntary is not defined, so it is uncertain when it will be required and what voluntary actually means.

Key Takeaways for California Employers 

AB 3234 takes effect as of January 1, 2025. California employers, first and foremost, must know that there is no requirement to conduct a social compliance audit. However, if an employer chooses to do an audit, it must follow the requirements of AB 3234.

Because there are no specifics about when a report must be posted, after such an audit is completed, an employer should effectuate a plan as to how and when they will post the report link on their internet site.

It should also go without saying that if an employer is utilizing child labor, it must comply with applicable California laws. This includes having the correct work permits for any children, knowing there are certain industries wherein child labor is not allowed, and adhering to the work hour limitations for children.