Seventh Circuit Reviews Jurisdiction in Forced Labor Suit Against Milwaukee Tool
Seventh Circuit heard oral arguments on jurisdiction in a forced labor claim against Milwaukee Electric Tool.
Why it matters: This case tests if US courts can hold companies accountable for forced labor overseas under the Trafficking Victims Protection Reauthorization Act, shaping future compliance and litigation risks for global supply chains.
- Oral argument held November 4, 2026, in Seventh Circuit Court of Appeals in Chicago.
- Plaintiff ‘Xu Lun’ alleges forced labor producing Milwaukee Electric Tool products in a Chinese prison.
- Central issue: Whether TVPRA’s extraterritorial jurisdiction applies to US companies for overseas conduct.
- Judge Joshua P. Kolar expressed concern about US courts’ foreign policy roles when hearing such claims.
On November 4, 2026, the Seventh Circuit Court of Appeals in Chicago considered whether US courts have jurisdiction over a forced labor lawsuit filed against Milwaukee Electric Tool Corp. by a plaintiff using the pseudonym Xu Lun. Xu alleges he was subjected to forced labor as a prisoner in China, producing gloves bearing Milwaukee Tool’s logo, and seeks to hold the company liable under the Trafficking Victims Protection Reauthorization Act (TVPRA).
The TVPRA, enacted in 2000, allows victims of forced labor to bring civil suits in US courts but its application to extraterritorial conduct is legally contested. According to court documents reviewed by Law360, the case challenges whether the TVPRA permits lawsuits against US companies for alleged forced labor occurring exclusively outside US borders.
During oral arguments, Judge Joshua P. Kolar expressed concerns about the judiciary's role in adjudicating claims with foreign policy implications, stating, "We're a little bit worried about just letting anyone dabble in international relations." The court has yet to decide if the TVPRA extends jurisdiction where the allegedly wrongful conduct happened abroad but involves a US company.
Milwaukee Electric Tool has not publicly commented, and no direct defense appeared in court records indicating acknowledgment or denial; the company’s position remains unreported.
This case follows a growing trend of litigation scrutinizing US corporate responsibility for overseas labor abuses, and its outcome may clarify jurisdictional limits under the TVPRA. Legal experts cited in Reuters suggest the ruling could impact how companies manage global supply chain risks related to forced labor compliance and human rights.
By the numbers:
- November 4, 2026 — Date of Seventh Circuit oral arguments.
- 2000 — Year the Trafficking Victims Protection Reauthorization Act was enacted.
- 1 — Primary defendant, Milwaukee Electric Tool Corp., a US company.
Yes, but: While the plaintiff alleges forced labor, the court has yet to rule on jurisdiction; the company’s defense remains unpublished, leaving factual disputes unresolved.
What's next: The Seventh Circuit is expected to issue a ruling in early 2027, potentially setting significant precedent on TVPRA extraterritorial reach.