USA Law and Practice Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
country or countries in which they are doing business; • Internal Accountability: whether the company maintains internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking; and • Training: Whether the company provides training on human trafficking and slavery to company employees and management who have direct responsibility for supply chain management. While the law does not mandate a specific fre - quency for updating the disclosure, it is generally recommended that companies review and revise their statements on a rolling basis to ensure con - tinued compliance and transparency. California Assembly Bill 3234 Effective 1 January 2025, California Assembly Bill 3234 imposes specific disclosure obligations on employers that voluntarily undergo Social Compliance Audits (SCAs) to assess the pres - ence of child labour within their operations or practices. This legislation applies to any California-based employer that has subjected itself to such an audit, whether in whole or in part, for the pur - pose of identifying child labour risks. Employers falling under this provision are required to publish a report on their website containing the following information: • date of the Social Compliance Audit; • findings related to child labour; • policies and procedures addressing child labour; • instances of children being exposed to unsafe or hazardous workplace conditions;
• occurrences of children working outside of regular school hours; and • a statement from the audit company. The law does not specify: • when the report must be published; • how long it must remain publicly available; or • how frequently it must be updated. As a result, while the disclosure is mandatory for qualifying employers, the timing and dura - tion of publication are left to the discretion of the employer. End Human Trafficking in Government Contracts Act of 2022 The End Human Trafficking in Government Con - tracts Act of 2022 enhances the federal govern - ment’s anti-human trafficking framework by imposing additional compliance obligations on contractors and subcontractors. This legislation applies to: Government contractors and subcontractors engaged in contracts with an estimated value exceeding USD550,000 that involve the delivery of goods or services outside the United States. • Under the Act, such contracts must be sup - ported by a comprehensive anti-human traf - ficking compliance plan, which includes the following key requirements: (a) Supply Chain Due Diligence: Contractors must conduct due diligence on their sup - ply chains to identify and mitigate risks of human trafficking. (b) Certification: Contractors must certify, to the best of their knowledge, that neither they nor their agents or subcontractors
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