In recent months, a wide variety of forced labor issues have caught the attention of legislators, regulators, the media, and the public. The press is also attuned to the issue of forced labor and the use of child labor in the United States. Realizing the complexity and importance of supply chains, consumers and lawmakers are beginning to focus on this issue. Regulators, too, are likely to exercise close scrutiny over supply chain and procurement operations with an eye towards combatting forced labor. Meanwhile, the reach of federal anti-trafficking law remains broad and undefined, while state legislatures create confusion with contradictory rollbacks of child labor protections. With this in mind, all entities will have to remain aware of the increasingly complex web of statutory, regulatory, and reputational risk. Corporations should consider addressing these issues in their compliance and risk mitigation procedures. Additionally, working with counsel can help reduce and address these issues as the legal landscape continues to change.
SUPPLY CHAIN ETHICS ARE INCREASINGLY THE SUBJECT OF PUBLIC, MEDIA, AND GOVERNMENT SCRUTINY
In recent months, a wide variety of forced labor issues have caught the attention of legislators, regulators, the media, and the public. U.S. Lawmakers from both sides of the aisle united around the issue when they passed the Uyghur Forced Lab or Prevention Act in 2021, partially as a response to pandemic-era supply chain challenges.1 This was also a response to reports of forcible detention of the Uyghur people, a Chinese Muslim minority, and apparent pervasive use of Uyghur forced labor in the Xinjiang region of China.2 The Act uniquely establishes a rebuttable presumption that goods produced in the Xinjiang region were produced using forced labor.3 Such goods are prohibited from entering the United States.4 The passage of the Act was a rare feat of bipartisan compromise and signals possible broad support for future legislative efforts to combat forced labor for goods and services for U.S. consumers.
The press is also attuned to the issue of forced labor and the use of child labor in the United States. Earlier this year, a New York Times investigation revealed the widespread use of migrant child labor in the supply chains of household-name food producers.5 The widely circulated report stated that children, most of whom had entered the country as unaccompanied minors, were working in factories that produce supermarket staples.6 These children were generally hired by staffing agencies, rather than by the companies directly.7 In response, the Biden administration announced plans to crack down on migrant child labor.8 In addition to new executive actions, companies with child labor in their supply chains may face liability under existing federal law: Child...
