USA Trends and Developments Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
chasing decisions and to incentivise responsible corporate behaviour, ultimately contributing to the protection and dignity of vulnerable workers. • Applies to retailers and manufacturers doing business in California with annual worldwide gross receipts exceeding USD100 million. • Requirements include public disclosure of efforts to eradicate slavery and human traf - ficking from direct supply chains. • Disclosure Areas: (a) verification of supply chains; (b) supplier audits; (c) supplier certification; (d) internal accountability standards; and (e) employee training. • Format: Disclosures must be posted on the company’s website via a conspicuous home - page link or provided upon written request. • Enforcement: The California Attorney General may seek injunctive relief for non-compliance. California Assembly Bill 3234 (Effective 1 January 2025) California Assembly Bill 3234 represents a sig - nificant addition to the expanding legislative landscape focused on corporate human rights compliance. Effective 1 January 2025, the law requires California employers who voluntarily conduct social compliance audits to publicly disclose findings related to child labour viola - tions. While the law does not mandate such audits, it imposes transparency obligations on those who choose to undertake them, reinforc - ing the importance of accountability in labour practices. This development aligns with a broader glob - al trend. Jurisdictions including the Europe - an Union, Germany, Japan, and Canada are advancing legislation that mandates corporate due diligence and disclosure related to child
labour and broader human rights risks. These efforts reflect a growing international consensus that transparency and proactive risk manage - ment are essential components of responsible business conduct. • Applies to employers in California that vol - untarily conduct Social Compliance Audits (SCAs) to assess child labour risks. • Requirements include mandatory public dis - closure of audit findings, including: (a) date of the audit; (b) child labour findings; (c) policies and procedures addressing child labour; (d) instances of hazardous conditions or school-hour violations; and (e) statement from the audit company. • Flexibility: The law does not specify when or how long the report must be published, leaving timing and duration to the employer’s discretion. New York Proposed: New York Fashion Sustainability and Social Accountability Act (NYFSSA) New York City boasts one of the nation’s high - est concentrations of fashion sales, talent, and emerging brands. However, as sustainability and ethical business practices become central to global commerce, New York is positioning itself at the forefront of regulatory innovation. On 8 October 2021, State Senator Alessandra Biaggi and Assembly member Anna R. Kelles introduced Bill S4746B, known as the Fashion Sustainability and Social Accountability Act (the “Fashion Act” ). This landmark legislation seeks to hold large fashion companies accountable for their environmental and social impacts. Crucially, the Fashion Act aligns with the OECD Guidelines for Multinational Enterprises and the
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