USA Law and Practice Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
or renewing contracts with any governmental entity. California Assembly Bill 3234 (2024) Effective September 2024, this legislation requires employers to disclose findings related to child labour identified in third-party Social Com - pliance Audits (SCAs). While the law does not mandate the conduct of such audits, it imposes disclosure obligations on employers who volun - tarily undertake them to assess compliance with child labour laws. See 2.2.4 Transparency and Reporting Require- ments for more information regarding reporting requirements. California Transparency in Supply Chains Act Applicable to retailers and manufacturers “doing business” in California with global gross receipts exceeding USD100 million annually, this Act requires public disclosure of efforts to eliminate slavery and human trafficking from direct supply chains. Disclosures must be: • posted on the company’s website via a con - spicuous and easily accessible homepage link; or • provided upon written request. See 2.2.4 Transparency and Reporting Require- ments for more information regarding reporting requirements. Utah House Bill 404 This law prohibits procurement by the state’s executive, judicial, and legislative branches of products made with forced labour. Vendors sub - mitting bids or proposals must certify that their products are not produced using forced labour. Exceptions apply if:
• no reasonable procurement alternatives exist; or • the product or contract was obtained or executed prior to 1 May 2024. 2.2.4 Transparency and Reporting Requirements California Transparency in Supply Chains Act The California Transparency in Supply Chains Act applies to retailers and manufacturers that are considered to be “doing business” in Cali- fornia, as defined by the California Tax Code, and that have annual worldwide gross receipts exceeding USD100 million. Under this legislation, covered entities are required to publicly disclose their efforts, if any, to eradicate slavery and human trafficking from their direct supply chains for tangible goods offered for sale. These disclosures must be: • published on the company’s website in a manner that is conspicuous and easily under - stood, accessible via a clear homepage link; or • provided upon written request. The disclosure must address the following five key areas: • Verification: whether the company veri - fies product supply chains to evaluate and address risks of human trafficking and slav - ery; • Audits: whether the company conducts audits of suppliers to evaluate supplier compliance with company standards for trafficking and slavery; • Certification: whether the company requires direct suppliers to certify that materials incor - porated into the product comply with the laws regarding slavery and human trafficking of the
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