USA Trends and Developments Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
goods produced in whole or in part in China’s Xinjiang region or by entities on the UFLPA Entity List. U.S. Customs and Border Protection (CBP) enforces the law through Withhold Release Orders (WROs) and formal Findings, reflecting a robust commitment to trade-based enforcement of human rights standards. End Human Trafficking in Government Contracts Act (2022) This law strengthens anti-trafficking compliance in federal procurement. Contractors with over - seas contracts exceeding USD550,000 must implement comprehensive compliance plans and conduct supply chain due diligence. While the scope of due diligence obligations remains somewhat ambiguous, the law signals a clear expectation for proactive risk management. Conflict Minerals Rule Under the Dodd-Frank Act, companies must disclose their use of conflict minerals sourced from the Democratic Republic of the Congo and adjoining countries. The rule promotes transpar - ency in electronics and manufacturing, although enforcement has been partially relaxed in recent years. Together, these laws reflect a US commitment to aligning trade policy with human rights val - ues. They challenge businesses to go beyond compliance and embrace ethical responsibility in their global operations. State-based regulation: a patchwork of innovation and enforcement While the United States does not currently impose federal mandates requiring corpora - tions to conduct human rights due diligence (HRDD), several states have taken the lead in introducing legislation that imposes HRDD- related obligations, particularly in the areas of
supply chain transparency, forced labour, and child labour. These state-level initiatives reflect a growing trend toward localised regulation of cor - porate human rights responsibilities and serve as important models for potential future federal action. California Through a combination of landmark legislation and emerging regulatory innovations, the state is shaping a distinct model of HRDD that blends disclosure mandates with growing expectations for accountability. Rather than waiting for federal mandates, the state is actively shaping the con - tours of responsible business conduct through a blend of transparency, public accountability, and strategic flexibility. As other states and countries consider similar measures, California’s evolv - ing framework offers a compelling model for how subnational governments can drive global standards from the ground up. California Transparency in Supply Chains Act In enacting the California Transparency in Supply Chains Act (S.B. 657), the legislature recognised that slavery and human trafficking are grave vio - lations of human rights, prohibited under state, federal, and international law. These crimes persist globally – including within California – and are often concealed, making them difficult to detect and address. The legislature further acknowledged that, through the purchase of goods tainted by exploitative labour practices, consumers and businesses may unknowingly contribute to these abuses. To address this, the Act aims to empower con - sumers by enhancing transparency. It mandates that large retailers and manufacturers disclose their efforts to eliminate slavery and human traf - ficking from their direct supply chains. The goal is to enable consumers to make informed pur -
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