USA Trends and Developments Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector. Companies would be expected to iden - tify and mitigate risks in their supply chains, promote long-term supplier relationships, and provide financial support to uphold labour and environmental standards. A key feature of the Act is its emphasis on human rights protections, including the establishment of compensation funds for workers affected by labour violations. These funds aim to restore impacted individuals to their pre-violation con - ditions. Additionally, the Act reinforces the right to a living wage – a standard income that covers basic needs and provides a buffer for unforeseen expenses. If passed, the Fashion Act would make New York the first jurisdiction globally to impose legally binding climate and human rights due diligence requirements on the fashion industry. It repre - sents a bold step toward aligning economic leadership with ethical responsibility in one of the world’s most influential fashion markets. • Applies to fashion retailers and manufactur - ers doing business in New York with annual global gross receipts over USD100 million. • Requirements: (a) public disclosure of environmental and social due diligence policies; (b) implementation processes and outcomes; (c) mapping of supply chains; (d) sustainability reporting; (e) disclosure of prioritised adverse impacts; and (f) targets for impact reduction and tracking mechanisms. • Timeline: (a) Disclosures must be posted within 12 months of policy implementation.
(b) Impact disclosures must be completed within 18 months. • Enforcement: The New York Attorney General may bring civil actions for injunctive relief, damages, or compliance orders. • Penalties: Fines of up to 2% of annual rev - enues for companies earning USD450 million or more if non-compliance is not remedied within three months of notice. Florida Florida House Bill 1331 • Requirements: (a) creation of a public blacklist of vendors associated with forced labour; (b) prohibition on procurement from black - listed vendors by state agencies; and (c) senior management must certify that goods sold to the state are free from forced labour. • Status: No vendors are currently listed on the blacklist. Florida House Bill 7063 • Requirements: (a) non-governmental entities must submit a signed affidavit affirming they do not engage in coercive labour practices con - stituting human trafficking; and (b) applies to all contracts with governmental entities, including renewals. Utah Utah House Bill 404 • Applies to vendors contracting with Utah’s executive, judicial, and legislative branches. • Requirements: (a) certification that products are not pro - duced using forced labour. • Exceptions: (a) No reasonable procurement alternatives exist.
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