Last Year: On January 1, 2012, the California Transparency in Supply Chains Act of 2010, began requiring large retail sellers and manufacturers to publicly disclose on their websites their efforts, if any, to ensure their supply chains of goods for sale are free from forced labor and human trafficking.
What Now? Now, starting January 1, 2013, if you are one of the following types of business, you must conspicuously post a notice of specific format that contains information about organizations that provide services to eliminate slavery and human trafficking:
- on-sale general public premises licensee under the Alcoholic Beverage Control Act;
- adult or sexually-oriented businesses
- primary airport;
- intercity passenger rail or light rail station;
- bus station;
- privately owned and operated truck stop that provides food, fuel, shower or other sanitary facilities, and lawful overnight truck parking;
- emergency room within general acute care hospitals;
- urgent care center;
- farm labor contractor;
- privately operated job recruitment center;
- roadside rest area; and
- certain business or establishment that offers massage or bodywork services for compensation.
Why Bother (Other than human trafficking is bad)? Penalties. Civil penalty of $500 for a first offense and $1,000 for each subsequent offense.
This is Just CA Being Peculiar Again, Right? Not this time. California joins Tennessee and Virginia in requiring companies to post this type of public notice. Even the President is on it. On September 25, 2012, he declared that “our global economy companies have a responsibility to make sure that their supply chains, stretching into the far corners of the globe, are free of forced labor.” The same day, President Obama signed an Executive Order that imposes enhanced obligations for federal contractors and subcontractors to affirmatively prevent human trafficking, including a formal compliance program and annual certifications of compliance.
Workplace Solution: A model notice is forthcoming, but may not be available from the Department of Justice prior to April 1, 2013. In the meantime, Seyfarth CWS members can help you develop a compliant posting to ensure timely posting and compliance.
Not in one of the above businesses? Or you say you’re a large a retailer or manufacturer (over $100 million in annual gross receipts)… Talk to your supply chain folks; talk to us if need be, and make sure you are in compliance with the California Transparency in Supply Chains Act of 2010.