CLC Licensing Basic Corporate Responsibility Standards for Labor Code Compliance

The following chart describes some of the basic CR requirements for many CLC institutions. These requirements can vary by school, and some institutions may require more comprehensive, university-specific guidelines.

Legal Compliance

Licensees must comply with all applicable legal requirements of the country(ies) of manufacture in conducting business related to or involving the production or sale of Licensed Articles. Where there are differences or conflicts with the Code and the laws of the country(ies) of manufacture, the higher standard shall prevail, subject to the following considerations. In countries where law or practice conflicts with these labor standards, Licensees agree to consult with governmental, human rights, labor and business organizations and to take effective actions as evaluated by CLC, the applicable collegiate institution(s) or their designee, and the applicable Licensee(s) to achieve the maximum possible compliance with each of these standards. Licensees further agree to refrain from any actions that would diminish the protections of these labor standards.

Supply Chain Transparency

Each Licensee shall disclose to the CLC, the collegiate institution, or its designee the location (including factory name, contact name, address, phone number, e-mail address, products produced, and nature of business association) of each factory used in the production of all items which bear Licensed Indicia. Such information shall be updated upon change of any factory site location. The collegiate institution reserves the right to disclose this information to third parties, without restriction as to its further distribution.

Wages and Benefits

Licensees recognize that wages are essential to meeting employees’ basic needs. Licensees shall pay employees, as a floor, at least the minimum wage required by local law or the local prevailing industry wage, whichever is higher, and shall provide legally mandated benefits.

Working Hours

Except in extraordinary business circumstances, hourly and/or quota-based wage employees shall (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture or, where the laws of such country do not limit the hours of work, the regular work week in such country plus 12 hours overtime; and (ii) be entitled to at least one day off in every seven day period.

Overtime Compensation

In addition to their compensation for regular hours of work, hourly and/or quota-based wage employees shall be compensated for overtime hours at such a premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate.

Child Labor

Licensees shall not employ any person at an age younger than 15 (or 14, where, consistent with International Labor Organization practices for developing countries, the law of the country of manufacture allows such exception). Where the age for completing compulsory education is higher than the standard for the minimum age of employment stated above, the higher age for completing compulsory education shall apply to this section. Licensees agree to consult with governmental, human rights and nongovernmental organizations, and to take reasonable steps as evaluated by CLC, the applicable collegiate institution(s) or their designee, and the applicable Licensee(s) to minimize the negative impact on children released from employment as a result of implementation or enforcement of the Code.

Forced Labor

There shall not be any use of forced prison labor, indentured labor, bonded labor or other forced labor.

Health and Safety

Licensees shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of Licensee facilities.

Nondiscrimination

Nondiscrimination: No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.

Harassment and Abuse

Harassment or Abuse: Every employee shall be treated with dignity and respect. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse. Licensees will not use or tolerate any form of corporal punishment.

Freedom of Association and collective bargaining

Freedom of Association and Collective Bargaining: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining.

Engagement with nonprofit organizations dedicated to assisting licensees and their supply chains to measure, implement, and credibly verify sound workplace conditions

Many universities hold affiliations with independent nonprofit organizations and other resources in order to provide a level of expertise that assists both universities and licensees to identify and solve areas of noncompliance and help licensees and their suppliers to fully realize CR standards in practice. The Fair Labor Association is a third-party monitoring organization that many institutions require their licensees to affiliate with under the appropriate membership category. Additional information regarding the FLA is available at www.fairlabor.org. The Worker Rights Consortium is a third-party monitoring organization that many of CLC’s institutional partners have elected to affiliate with in an effort to further promote workers’ rights within their supply chain and to identify and address labor rights violations. Additional details regarding the WRC are available at https://www.workersrights.org/.