California Transparency in Supply Chains Act Disclosure

Floor and Decor focuses on Supply Chain Security through participation in the Customs Trade Partnership Against Terrorism (CTPAT) program. Through this voluntary program, Customs and Border Protection (CBP) works with the trade community to strengthen international supply chains and improve United States border security

The executive leadership and management at Floor and Decor are committed to upholding the security requirements of the CTPAT program. As a program partner, we have regular oversight to ensure that our supply chain remains secure.

The California Transparency in Supply Chains Act of 2010 seeks the elimination of slavery and human trafficking from product supply chains and requires that companies disclose their efforts to ensure that their supply chains are free from slavery and human trafficking.

Floor and Decor’s Vendor Buying Agreement states as follows:

The Merchandise was not produced using any child, slave, prison or forced labor or any factory involved with human trafficking, and all people involved in the production of the Merchandise were of working age and were paid a fair wage in accordance with applicable Legal Requirements.

In addition, our Vendor Code of Conduct provides in part:

• Child Labor:
  Child labor is strictly prohibited. The minimum age for employment shall be the higher of 16 years of age, the minimum age for employment in that country or the minimum age for completing compulsory education in the country of manufacture.
• Forced Labor:
  Vendors must not use any form of involuntary labor including forced, prison, indentured, bonded, slave, or human trafficked labor.
• Harassment and Abuse:
  Vendors must treat all workers with respect and dignity. No worker shall be subject to corporal punishment, physical, sexual, psychological or verbal harassment or abuse. In addition, Vendors must not use monetary fines as a disciplinary practice.

We confirm compliance through a variety of methods, including on-site visits of vendors by Floor & Decor personnel and by independent third-party visits, which have been announced on short notice and may be unannounced in the future. Floor & Decor provides periodic training on these conduct requirements to personnel responsible for supply chain management.

If we became aware of any actions or conditions not in compliance with these standards, we would take appropriate remedial action. Specifically, Floor & Decor also reserves the right to terminate an agreement with any vendor who does not comply with Floor & Decor’s Vendor Buying Agreement, and we would also consider other measures such as increased training, increased auditing, disciplinary action and/or reporting to the relevant authorities.

Floor & Decor regularly evaluates and develops other initiatives to maintain internal accountability and mitigate the risk of human trafficking within the supply chain of our products.