The C-Suite rarely wants to consider, much less worry about, the impacts of criminal conduct on their business. The reality is, however, companies can and do get pulled into criminal and quasi-criminal enforcement actions as both victims and (albeit unintentional) perpetrators. Two areas of criminal conduct that perhaps do not receive the amount of C-Suite attention they deserve are internal trade secret theft and human trafficking.
Continue Reading How to Prevent or Defend Against Business Crimes, including Trade Secrets and Human Trafficking

FAR 52.222-50 prohibits “human trafficking.” To quote the current GEICO TV commercials, “Everybody knows that.” But do you know exactly what the FAR prohibits? The answer includes some obvious pernicious acts, but it also covers some related activities that might not necessarily jump immediately to mind. Remember, these prohibitions apply to all contractors – large and small, commercial and non-commercial, whether the contract was awarded via sealed bidding or negotiation – and to their employees and agents, and they must be flowed down to subcontractors. Moreover, there is an obligation to conduct “due diligence” and certify to subcontractor compliance with the prohibitions if the subcontract exceeds $500,000 and any portion is for non-COTS supplies acquired or for services performed outside the United States.
Continue Reading Human Trafficking Is Forbidden by Government Contracts. But What Is “Human Trafficking”?

In late January, the FAR Council issued its long-awaited final rule amending the FAR to strengthen the U.S. Government’s policy against human trafficking.  As discussed below, the amendments may have far-reaching compliance implications for government contractors.
Continue Reading Final Anti-Trafficking Rule to Impose New – and Uncertain – Obligations on Contractors

Since 2005, federal contractors have been on notice that the Government has “zero tolerance” for any federal contractor found to be complicit in aiding human trafficking. For the past seven years, however, that “zero tolerance” has been focused on halting only some aspects of human trafficking, namely involuntary servitude and commercial sex acts. We have previously discussed the human trafficking regulations that are currently in place here. But, as Bob Dylan once said, “The times, they are a changing.” On September 25, 2012, President Obama issued an executive order requiring the Federal Acquisition Regulations (“FAR”) Council to amend the FAR to strengthen protections against human trafficking in persons. As before, the new FAR requirements will apply to solicitations, contracts, and subcontracts for supplies or services (including construction and commercial items) and prohibit contractors and subcontractors from engaging in various trafficking-related activities. However, the trafficking activities identified in the Executive Order have expanded dramatically and will require contractors to plan review, and to revamp as needed, their policies and procedures for the recruitment of personnel and the monitoring of compliance with the expanded requirements.
Continue Reading The Government on Combatting Human Trafficking: “We REALLY, REALLY Mean It”

By: John W. Chierichella

In our February 2009 posting, we commented on the final rule implementing, via FAR 52.222-50 (“Combating Trafficking in Persons”), the Trafficking Victims Protection Reauthorization Act of 2005.

On January 1, 2012, companies doing business in California will have state-level disclosure obligations to deal with in this realm as well. That is the effective date of the California Transparency in Supply Chains Act of 2010, which imposes obligations on every large retailer and manufacturer doing business in California to disclose whether it has taken specified actions to eliminate slavery and human trafficking from its product supply chain.
 


Continue Reading New Disclosure Requirements For Companies Doing Business In California

On January 15, 2009, the FAR Councils issued the final rule implementing the provision of the Trafficking Victims Protection Reauthorization Act of 2005 ("TVPA") 22 U.S.C. § 7104(g).  The final rule is implemented by FAR 52.222-50 entitled “Combatting Trafficking in Persons.”
 


Continue Reading FAR Councils Issue Final Rule for Human Trafficking