VERIFYING THE SELF-ASSESSMENT QUESTIONNAIRE

In completing the Self-Assessment Process, the following lists each question from the Self-

Assessment Questionnaire and the evidence that must be verified.

PERSONNEL ISSUES

Question 1.1 Does the factory obtain current information on local and national laws and

regulations, and incorporate this information in its business practices?

The workers should be compensated according to the local and national labor laws. The payroll

department should have the latest copies of these laws and amendments on file. These laws should

cover, but not be limited to the following areas:

• Wages and hours.

• Legal benefits.

• Minimum age for employment and related restrictions.

• Health and safety standards.

• Employment discrimination.

• General labor law.

The factory should have a procedure that will ensure that the labor laws and regulations are being

followed. There should be a manager or supervisor responsible for monitoring and updating these

laws. Any new laws should be adapted as soon as possible.

The factory should review the labor laws to ensure that the workers are being properly compensated.

If the factory uncovers a violation, that violation must be corrected as soon as possible. The factory

should document the violation and what was done to correct it. There should be a procedure to

prevent the violation from re-occurring.

It should be part of the factories official company policy that all labor laws will be obeyed.

Question 1.2 Does the factory prohibit any condition within the facility, building and/or

equipment that could cause injury or death to the workers, or any violation of law or a

JCPenney standard?

An unsafe condition is anything that can cause injury or death to the worker. The factory should have

a procedure for monitoring safety conditions within the facility. This would include the building and all

property that is attached to the building and owned, or used by the factory. There should also be a

procedure for monitoring equipment and machinery for unsafe conditions. These procedures should

be monitored by a manager or supervisor. This can be anyone that the factory designates, however,

it is usually the responsibility of the Safety Manager or Safety Supervisor. Safety issues concerning

machinery and equipment are usually monitored by an Equipment Maintenance Manager or

Supervisor.

The building should be inspected on a regular basis for unsafe conditions. Unsafe conditions should

be repaired as soon as possible. Building inspection records should be maintained indicating the

type of inspection performed, date of the inspection and the results of the inspection. Any repairs

made should also be listed.

Machinery and equipment should be inspected and maintained on a regular basis. Defective

machinery and equipment should not be used until the proper repairs have been made. Equipment

inspection records should be maintained listing the type of inspection, date of the inspection, the

results of the inspection and what repairs were made. Any repairs made should also be listed.

All workers using any machinery or equipment should be properly trained in the safe use of the

equipment involved.

All local and national laws concerning labor issues and the operation of the factory must be obeyed.

However, there are situations where a JCPenney standard is more stringent than local or national

law. When this occurs, the JCPenney standard must be followed.

Question 1.3 Does the factory effectively prohibit convict, involuntary, and forced labor?

The use of convict, involuntary, indentured or forced labor of any kind is prohibited. There are no

exceptions.

Convict Labor

The factory is prohibited from hiring convicted criminals currently in prison for committing a crime.

Even though there are conditions where it is permitted to employ criminals under local or national law,

it is expressly forbidden to import any product into the United States under United Stated Customs

Laws, if that product was produced by convict labor.

Involuntary Labor or Forced Labor

Anyone being forced to work against their will is considered involuntary or forced labor. Workers

must be given complete freedom of movement to leave the facility at any time. Factories have the

right to impose restrictions on workers entering the facility or entering certain rooms within the facility

but should never prohibit workers from leaving.

Indentured Labor

Workers should never be forced to work by contract or any other means. Workers should never be

forced to work to pay off a debt for themselves, a family member or anyone else by signing a

contract.

Worker Contracts

In some factories workers are required to sign an employment contract. These contracts will usually

list the job description, job duties, disciplinary procedures, overtime requirements and the length of

time that the contract is in effect. Some contracts are open ended. That is, the contract may be

written with no ending date. If the contract is open ended, there must be a provision that will end the

contract when the worker resigns the job. Employment contracts must not include anything that can

be interpreted as forcing the worker to work. Workers must be allowed to resign at any time.

Occasionally factories use third party agents or brokers to hire workers. If third parties are used to

hire workers, the workers’ wages must be paid directly to the worker and not the agency or broker. It

is the factories responsibility to ensure that third party agents or brokers supply legal workers that are

not convicts, indentured or forced to work in any way.

Security guards employed by the factory, or security agencies contracted for their services, must not

engage in practices that will cause workers to stay in the factory and work against their will. Security

guards should be limited to normal security functions such as protecting the factory and products

produced and the security of the workers and other factory personnel.

The factory should not retain the worker's original identification card, work permit or other form of

identification.

Employees must have freedom of movement within the dormitories and be free to leave at any time.

Question 1.4 Does the factory obtain documentation for proof of age and eligibility for

employment from all potential workers prior to hiring?

When hiring workers, the factory should verify proof of age and eligibility to work according to local

and national laws or JCPenney standards. This proof must be in a form of legally acceptable

documents. The following are examples of the type of documents that are acceptable:

Proof of age as required by the country where the factory is located, including but not limited to:

• Official birth certificate.

• Official identification card.

• Official school records.

• Proof of residence.

• Immigration or other legal papers as required.

• A statement of age containing:

• Employee signature.

• Employee identification number or other means of identification.

• Date of signature.

All workers should fill out an employment application listing their name, address, date of birth, place

of birth, citizenship, type of job applied for and any information as required by local and national law.

This application should be signed by the worker.

The factory should have a procedure that explains to the workers minimum age and eligibility

requirements for the job applied for. The factory should explain all benefits that the workers are

entitled to. This includes social security (medical and pension), savings, bonus, overtime hours,

overtime pay, worker contracts, job requirements, disciplinary procedures, dormitory, meals and

anything that will affect the worker.

All benefits and requirements should be prominently posted so they can be read by all the workers.

All worker personnel records should be periodically reviewed to ensure that the proper documents are

on file and correctly updated.

Question 1.5 Does the factory prohibit the hiring of workers under the legal age or

JCPenney standard, or ineligible workers, and does the factory keeps copies of age and

eligibility?

It is the responsibility of the factory to ensure that all workers hired are of legal age and meet the

eligibility requirements of the country where the factory is located. If it is determined that these

requirements are below the JCPenney standards, then the JCPenney standards will apply.

The factory should have a procedure to screen all workers prior to hiring, to ensure that they meet all

applicable age and eligibility requirements. Copies of all applicable proof should be kept on file for all

workers.

There should be a manager or supervisor responsible for maintaining and updating worker files.

Question 1.6 Does the factory effectively prohibit all forms of harassment, abuse, and

physical and/or verbal abuse?

Workers should be fairly treated according to the laws of the country where the factory is located.

The factory should expressly prohibit all forms of harassment, verbal and/or physical abuse. This

includes, but is not limited to:

• Physical or verbal coercion.

• Sexual abuse.

• Harassment, or abuse in the form of disciplinary action.

• Any harassment or abuse from any person, such as security guards, or any manager, supervisor

or worker.

Question 1.7 Does the factory have procedures to ensure employees are compensated

in accordance with local laws and regulations?

The factory should have a payroll procedure that will ensure workers are compensated in accordance

with local and national laws. The factory should have a manager or supervisor responsible for the

payment of wages and all issues relating to wages. There should be an itemized listing of all

deductions. These procedures should include, but not be limited to:

• A detailed method of payment as appropriate.

Check.

Cash.

Direct deposit.

• The basis for payment.

Hourly.

Weekly.

Monthly.

Piece rate.

Combination (Hourly and piece rate).

• A detailed procedure for wage calculation where applicable.

Quota for piece rate or hourly calculation.

Adjustment to meet minimum.

Hourly or monthly minimum rate.

Bonus or other incentives.

• Itemized deductions.

Social Security (Medical and/or pension).

Required local and national taxes.

Issuing and repayment of loans.

Any other deductions.

• Frequency of payment.

Weekly.

Monthly.

Other.

• Specific length of the normal work day.

Number of hours.

Start and finish time.

• Define the normal week.

Number of consecutive days.

Specific days of the week.

• Rest and meal breaks.

Number of breaks.

Length of break.

Time of day or shift.

• Designate days off.

Normal day(s) off each week.

Holidays (Legal and/or religious).

Vacation.

• Define overtime.

Hours.

Compensation rate.

The factory should have a detailed pay slip that shows all the deductions made and the method of

calculation. If workers receive cash payments there should be a master payroll record with each

workers’ signature indicating that they received their pay.

The workers should be notified in writing of any changes in their actual pay and/or payroll procedures

and the reasons for these changes.

Any miscalculations or under payment of wages must be corrected immediately.

Any worker's complaints regarding wages must be investigated immediately. If it is determined that

the workers were not correctly paid, an adjustment must be made immediately.

Question 1.8 Are factory workers, at the time of hiring, made aware of their legal rights

regarding hours worked, and wage compensation?

When factory workers are hired they should receive an explanation of their legal rights concerning the

working hours of the factory. They should be told if overtime is required and how many overtime

hours they can expect to work daily, weekly and monthly. They should be given an explanation of the

laws concerning overtime.

A written explanation of wage and overtime laws should be provided to the workers. This explanation

should be signed by the worker and a copy should be kept in the worker’s file.

The factory should periodically review the laws concerning hours worked and wage compensation to

ensure they are in compliance with the most current laws. Any areas that are not current should be

corrected. Copies of the latest laws should be kept on file.