[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1434 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 1434
To require certain businesses to disclose and eradicate the use of
unlawful child labor in their supply chain, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 3, 2023
Mr. Hawley introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To require certain businesses to disclose and eradicate the use of
unlawful child labor in their supply chain, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Corporate Responsibility for Child
Labor Elimination Act of 2023''.
SEC. 2. REQUIRED REPORTING ON USE OF UNLAWFUL CHILD LABOR FROM COVERED
BUSINESS ENTITIES.
(a) Definitions.--In this Act:
(1) Covered business entity.--The term ``covered business
entity'' means any issuer, as defined in section 2(a) of the
Securities Act of 1933 (15 U.S.C. 77b(a)), that has annual,
worldwide gross receipts that exceed $500,000,000.
(2) Gross receipts.--The term ``gross receipts'' has the
meaning given the term in section 993(f) of the Internal
Revenue Code of 1986.
(3) On-site service.--The term ``on-site service'' means
any service work provided on the site of a covered business
entity or supplier of such entity, including food service work,
catering services, cleaning, and maintenance.
(4) On-site service provider.--The term ``on-site service
provider'', with respect to a covered business entity, means
any entity that provides workers who perform on-site services
for the covered business entity or any supplier of such covered
business entity.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) Supplier.--The term ``supplier'', with respect to a
covered business entity, means any entity that produces any
input of a good produced by such covered business entity.
(7) Supply chain.--The term ``supply chain'' means the end-
to-end process for producing and transporting goods beginning
at the point of origin through a point of distribution to the
destination, inclusive of suppliers and on-site service
providers.
(8) Unlawful child labor.--The term ``unlawful child
labor'' means any labor practice that violates child labor laws
in the United States, including Federal and State child labor
laws.
(b) Audit and Reporting Requirements.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and every year thereafter, each covered
business entity shall--
(A) conduct an audit of its supply chain, pursuant
to the requirements of section 3, to investigate the
presence or use of unlawful child labor by the covered
business entity, suppliers of the covered business
entity, and on-site service providers of the covered
business entity;
(B) submit a report to the Secretary containing the
information described in paragraph (2) on the results
of such audit and efforts of the covered business
entity to eradicate unlawful child labor from the
covered business entity, suppliers of the covered
business entity, and on-site service providers of the
covered business entity; and
(C)(i) publish the report described in subparagraph
(B) on the public website of the covered business
entity, and provide a conspicuous and easily understood
link on the homepage of such website that leads to the
report; or
(ii) in the case of a covered business entity that
does not have a public website, provide the report in
written form to any consumer of the covered business
entity not later than 30 days after the consumer
submits a request for the report.
(2) Required report contents.--Each report required under
paragraph (1)(B) shall contain, at a minimum--
(A) a disclosure of the policies of the covered
business entity to prevent the use of unlawful child
labor by the covered business entity and any supplier
or on-site service provider of the covered business
entity;
(B) a disclosure of what policies or procedures, if
any, the covered business entity uses--
(i) for the verification of suppliers of
the covered business entity and on-site service
providers of the covered business entity to
evaluate and address risks of unlawful child
labor and whether the verification was
conducted by a third party;
(ii) to require suppliers of the covered
business entity and on-site service providers
of the covered business entity to provide
written certification that inputs supplied or
on-site services provided, respectively, comply
with the child labor laws in the United States,
including any Federal or State child labor law;
(iii) to maintain internal accountability
standards and procedures for workers, including
contractors, of the covered business entity
failing to meet requirements regarding unlawful
child labor; and
(iv) to provide training on recognizing and
preventing unlawful child labor, particularly
with respect to mitigating risks within the
supply chain of the covered business entity, to
workers, including management personnel, of the
covered business entity who have direct
responsibility for managing the supply chain of
the covered business entity;
(C) a description of the findings of each audit
required under paragraph (1)(A), including the details
of any instances of found or suspected unlawful child
labor; and
(D) a written certification, signed by the chief
executive officer of the covered business entity,
that--
(i) the covered business entity has
complied with the requirements of this Act and
exercised due diligence in order to eradicate
unlawful child labor from the supply chain of
the covered business entity;
(ii) to the best of the chief executive
officer's knowledge, the covered business
entity has found no instances of the use of
unlawful child labor by the covered business
entity or any supplier or on-site service
provider of the covered business entity or has
disclosed every known instance of such use of
unlawful child labor; and
(iii) the chief executive officer and any
other officers submitting the report or
certification understand that section 1001 of
title 18, United States Code (commonly known as
the ``False Statements Act''), applies to the
information contained in the report submitted
to the Secretary.
(c) Report of Violations to Congress.--Each year, the Secretary
shall prepare and submit a report to Congress regarding covered
business entities that--
(1) have failed to conduct audits required under this Act
for the preceding year or have been adjudicated in violation of
any other provision of this Act; or
(2) have been found to have used unlawful child labor,
including the use of unlawful child labor in their supply
chain.
SEC. 3. AUDIT REQUIREMENTS.
(a) In General.--Each audit conducted under section 2(b)(1)(A)
shall meet each of the following requirements:
(1) Worker interviews.--The auditor shall--
(A) select a cross-section of workers to interview
that represents the full diversity of all workplaces of
the covered business entity or a supplier or on-site
service provider of the covered business entity, and
includes, if applicable, men and women, migrant workers
and local workers, workers on different shifts, workers
performing different tasks, and members of various
teams;
(B) if individuals under the age of 18 are working
at a facility of the covered business entity or a
supplier or on-site service provider of the covered
business entity, interview a representative group of
such individuals using age-sensitive interview
techniques;
(C) conduct interviews--
(i) off-site of any facility of the covered
business entity or a supplier or on-site
service provider of the covered business entity
and during non-work hours for the worker;
(ii) individually (except for purposes of
subparagraph (B)) or in groups; and
(iii) using methods of communication that
limit, to the greatest extent practicable, any
reliance on devices or services provided to the
worker by the covered business entity or any
supplier or on-site service provider of the
covered business entity;
(D) use audit tools to ensure that each worker is
asked a comprehensive set of questions;
(E) collect from interviewed workers copies of the
workers' pay stubs, in order to compare the pay stubs
with payment records provided by the covered business
entity or any supplier or on-site service provider of
the covered business entity;
(F) ensure that all worker responses are
confidential and are never shared with management
personnel of the covered business entity or any
supplier or on-site service provider of the covered
business entity; and
(G) interview a representative of the labor
organization or other organization representing workers
at a facility of the covered business entity or any
supplier or on-site service provider of the covered
business entity or, if no such organization is present,
attempt to interview a representative of such workers
from a local worker advocacy group.
(2) Management interviews.--The auditor shall--
(A) interview a cross-section of management
personnel of the covered business entity or any
supplier or on-site service provider of the covered
business entity, including human resources personnel,
production supervisors, and others; and
(B) use audit tools to ensure that such individuals
are asked a comprehensive set of questions.
(3) Required information.--The auditor shall conduct a
thorough review of information regarding the covered business
entity and any supplier or on-site service provider of the
covered business entity to provide tangible proof of compliance
with child labor laws in the United States, including any
Federal or State child labor law, and to corroborate or find
discrepancies in the information gathered through the worker
and management interviews under paragraphs (1) and (2),
respectively. At a minimum, such review shall contain, with
respect to the covered business entity and any supplier or on-
site service provider of the covered business entity, a review
of each of the following:
(A) Procedures and documents with respect to
verifying the age of workers.
(B) A master list of juvenile workers or
information related to juvenile workers.
(C) Procedures regarding the selection and
recruitment of workers.
(D) Contracts with labor brokers, if any.
(E) Worker contracts and other employment
agreements.
(F) Introduction program materials.
(G) Personnel files of workers.
(H) Worker communication and training plans,
including certifications provided to workers including
skills training, worker preparedness, government
certification programs, and systems or policy
orientations.
(I) Collective bargaining agreements, including
collective bargaining representative certifications,
descriptions of the role of any applicable labor
organization, and minutes of the meetings of such a
labor organization.
(J) Contracts with any security agency, and
descriptions of the scope of responsibilities of the
security agency.
(K) Payroll and time records.
(L) Production capacity reports.
(M) Written human resources policies and
procedures.
(N) Occupational health and safety plans and
records including legal permits, maintenance and
monitoring records, injury and accident reports,
investigation procedures, chemical inventories,
personal protective equipment inventories, training
certificates, and evacuation plans.
(O) Disciplinary notices.
(P) Grievance reports.
(Q) Performance evaluations.
(R) Promotion or merit increase records.
(S) Dismissal and suspension records of workers.
(T) Records of workers who have resigned.
(U) Worker pay stubs.
(4) Closing meeting with management.--The auditor shall
hold a closing meeting with management personnel of the covered
business entity to--
(A) report violations of child labor laws in the
United States, including any Federal or State child
labor law, found in any facility of the covered
business entity or any supplier or on-site service
provider of the covered business entity; and
(B) determine the steps forward to address and
remediate any such violations.
(5) Report preparation.--The auditor shall prepare a full
report of the audit, which shall include--
(A) a disclosure of the suppliers of the covered
business entity and on-site service providers of the
covered business entity;
(B) documented processes and procedures of the
covered business entity and any supplier or on-site
service provider of the covered business entity that
relate to eradicating unlawful child labor;
(C) documented risk assessment and prioritization
policies of the covered business entity and any
supplier or on-site service provider of the covered
business entity as such policies relate to eradicating
unlawful child labor;
(D) a description of the worker interviews,
management interviews, and documentation review
required under paragraphs (1), (2), and (3),
respectively;
(E) a description of all violations or suspected
violations of child labor laws in the United States,
including any Federal or State child labor law, by the
covered business entity and any supplier or on-site
service provider of the covered business entity; and
(F) for each violation or suspected violation
described in subparagraph (E), a description of any
corrective or protective action recommended for the
covered business entity, supplier, or on-site service
provider consisting of, at a minimum--
(i) the issues relating to, and any root
causes of, the violation or suspected
violation;
(ii) the implementation of a solution to
remedy the violation or suspected violation;
and
(iii) a method to check the effectiveness
of such solution.
(b) Additional Requirements Relating to Audits.--
(1) No retaliation for audit cooperation.--Any covered
business entity, supplier of a covered business entity, or on-
site service provider of a covered business entity shall not
retaliate against any worker for participating in an interview
under paragraph (1) or (2) of subsection (a) or providing to an
auditor information necessary for the audit requirements under
subsection (a)(3).
(2) Contract requirements.--Each covered business entity
shall include, in any contract with a supplier or on-site
service provider, a requirement that--
(A) the supplier or on-site service provider shall
not retaliate against any worker for participating in
an audit relating to unlawful child labor; and
(B) worker participation in any such audit shall be
protected through the same grievance mechanisms
available to the worker for any other type of workplace
grievance.
SEC. 4. ENFORCEMENT.
(a) In General.--The Secretary may assess civil damages against a
covered business entity in an amount of not more than $100,000,000 if,
after notice and an opportunity for a hearing, the Secretary determines
that the covered business entity has violated any requirement of
section 2(b).
(b) Prohibition on Retaliation.--The Secretary may assess civil
damages against a covered business entity, supplier, or on-site service
provider in an amount of not more than $500,000,000 if, after notice
and an opportunity for a hearing, the Secretary determines the covered
business entity, supplier, or on-site service provider has willfully
violated section 3(b)(1).
(c) Declarative or Injunctive Relief.--The Secretary may request
the Attorney General institute a civil action for relief, including a
permanent or temporary injunction, restraining order, or any other
appropriate order, in the district court of the United States for any
district in which the covered business entity conducts business,
whenever the Secretary believes that a violation of section 2(b)
constitutes a hazard to workers.
SEC. 5. REGULATIONS.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall promulgate regulations to carry out this Act.
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