Corporate Responsibility for Child Labor Elimination Act of 2023

Subjects: Labor and Employment


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1434 Introduced in Senate (IS)]

&lt;DOC&gt;






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.
                                 &lt;all&gt;
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