Contents

• (1) Basic knowledge of logistics in the U.S. and deregulation of logistics
• (2) Laws, regulations, and rules that you should know for warehouse management in the U.S.
• (3) Key points of IT utilization in logistics operations in the U.S.
• (4) WMS, with a track record of adoption in many countries and regions, now also available in the U.S.!
• Back to Global Support Top

*This information is as of August 2023
*Reference: Japan External Trade Organization (JETRO) websitehttps://www.jetro.go.jp/indexj.html (Japanese)

Laws related to Act on the Protection of Personal Information
California Consumer Privacy Act

The California Consumer Privacy Act (CCPA), enacted in 2018 and effective in 2020 in California, is a law similar to the EU General Data Protection Regulation. What impact does the CCPA have on logistics, and what kind of measures do we need to take?

In order for Japanese companies to comply with the CCPA, it is essential not only to respond to legal regulations but also to change the organizational culture and mindset. Additionally, companies are required to recognize the importance of personal data protection and take appropriate measures.

(1) Data mapping and privacy assessment

Visualizing data flow and conducting risk and privacy assessments are the keys. Collection, use, sharing, and deletion of personal data demands transparency and certainty.

(2) Guarantee of rights related to data subjects

The CCPA permits the owner of personal data to access, delete, and modify the data. Companies need to define the processes and procedures that to realize these rights.

(3) Security and data protection measures

The requirements for personal data security and protection are strictly stipulated, and companies must take appropriate technical and organizational measures to strengthen security measures in order to prevent personal data leakage and misuse.

(4) Revising of contracts with suppliers

As the law includes provisions for data sharing and handling between companies and suppliers, companies are also required to review supplier contracts and incorporate bylaws and measures to comply with the law.

(5) Supervision and reporting obligations

The law defines the obligation to cooperate with and report to the supervisory body regarding handling personal data, requiring companies to develop internal audit and reporting processes.

Laws related to food traceability

This section explains what the U.S. food traceability-related laws are and how Japanese companies should respond to them.

In the U.S., companies must comply with food traceability-related laws to ensure food safety and quality. Measures are required to ensure compliance with the U.S. Food Safety Modernization Act (FSMA) and regulations established by the Food and Drug Administration (FDA). Companies need to understand U.S. food traceability laws and regulations, continuously improve and adapt their internal systems, and keep abreast of the latest trends and regulatory changes.
The following laws are particularly relevant to logistics operations.

Article 102 of the Food Safety Modernization Act (FSMA)

Domestic and overseas facilities that manufacture, process, pack, and store food for human or animal consumption in the U.S. must be registered with the FDA under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.

Article 111 of the FSMA

The article mandates that hygienic transportation of food products be ensured. In particular, it demands that companies prevent food safety risks in transportation, such as improper management of food temperature and incomplete cleaning of vehicles when changing loads.

Articles 201 and 306 of the FSMA

The enactment of the FSMA has significantly strengthened the FDA's authority, enabling it to inspect food facilities even outside the U.S. that manufacture, process, package, and store food products to be distributed within the country.

Article 204 of the FSMA

For enhanced traceability, the FDA designates high-risk food products and obligates that their records be kept for two years.

(1) Development of systems and processes

Companies are required to establish internal data management and processes and to develop a traceability system, such as tracking production processes and distribution channels, identifying product lots and batches, and storing and sharing data.

(2) Data accuracy and reliability

Food traceability rules demand data reliability. To achieve this, accurate data must be promptly collected and managed by strengthening data exchange with producers, suppliers, and distributors.

(3) Strengthening of audit and monitoring

Companies need to review their traceability system and processes so they can quickly demonstrate compliance with legal requirements for audits or monitoring when requested.

(4) Crisis management

In preparation for contingent food safety issues or recalls, companies need to formulate a crisis management plan and develop a system to enable quick and appropriate responses.

California Warehouse Quota Law

This section explains the California Warehouse Quota Law (AB701) and its measures for improving the working environment for warehouse workers in the U.S.

The U.S. state of California enacted AB701 in September 2021 for the purpose of protecting the labor environment and workers in the warehouse industry. The law regulates the working conditions, break times, compensation systems, and work quotas for the workers.

Overview of AB701

• Prohibits an employer from using algorithms to track its employees' meal times, breaks, and bathroom hours
• Mandates that an employer disclose quotas for productivity and work speed to its employees
• Prohibits an employer from dismissing an employee due to failure to meet work quotas that have not been disclosed to them
• The National Labor Relations Board (NLRB) can subpoena violating companies

(1) Revising of work quota setting and labor environment

An employer is required to revise the work quota setting and working environment to assure compliance with AB701 and implement measures to ensure the health and safety of employees.

(2) Data collection and reporting obligations

As warehouse operators are obligated to collect data, such as work quota attainment and turnover rates, and regularly disclose it to employees, they must develop a system and processes to collect and disclose the necessary data.

(3) Improvement of employee participation and mindsets

Warehouse operators are to improve employee awareness and encourage their participation by strengthening communication with employees and providing opportunities to share ideas and feedback on working conditions and work quota setting.

(4) Legal advice and professional assistance

It is required to take appropriate measures with the help of legal advice, assistance from labor law experts, and guidance on interpreting and implementing regulatory requirements.

New York State Warehouse Worker Protection Act

This section will explain the Warehouse Worker Protection Act of New York State, another law related to warehouse workers.

The Warehouse Worker Protection Act, enacted in December 2022 by the state of New York, restricts the imposition of strict work quotas and other requirements for the protection of warehouse workers. Employers must take steps to comply with the law, for instance, by thoroughly understanding the details of the law, knowing regulations on working conditions, and taking measures to protect the rights and safety of employees.

(1) Improvement of labor environment

Employers are required to improve the working environment by ensuring workplace safety, managing working hours, educating and training employees, and setting appropriate wages. Employers also need to strengthen communication with employees and strive to build relationships with them.

(2) Rights and benefits of employees

Employers of warehouse workers must protect the rights and benefits of their employees, including establishing a fair wage structure, observing break times, and establishing benefit programs such as severance pay and health insurance.

(3) Obligation to collect and disclose data

To comply with the law, employers of warehouse workers must have a system and processes in place that can appropriately collect data on employees' working hours and conditions, and disclose it to employees.

(4) Strengthening of audit and monitoring

Employers need to develop a system to audit their warehouse facilities and working conditions regularly to ensure compliance with legal requirements. It is crucial for companies to receive advice from experts and support from consultants who are familiar with New York labor laws and regulations, including the above items.

State-specific regulations and responses to them

Even within the U.S., licensing requirements and legal regulations vary from state to state. Warehouse operators and companies that manage their own warehouse operations or outsource the operations to other companies need to understand the licensing and application of commercial code in the states where their distribution centers are located.

For logistics center management in the country, a company must comply with the laws and regulations of each state. The specific requirements to obtain licenses and apply commercial code vary depending on the state where a logistics center is located. To obtain detailed information, companies are encouraged to consult with relevant agencies and experts in each state and are required to acquire accurate and up-to-date information to take prompt action.

For this reason, it is important to select a corporate partner who can respond to your company's needs in a timely manner without staggered implementation, such as formulating business rules that are compatible with the required timeline and reflecting the rules in the information system to establish them in the field.

(1) Acquisition of licenses

Companies are to contact the relevant agencies, such as the state's transportation department or economic development agency, to obtain different types of licenses and permits in each state. For example, if you are running a warehouse operation, you need a warehouse company license, and for a transportation business, you need a carrier license.

(2) Application of commercial code

Companies are obligated to follow the commercial code and regulations of each state, such as contract laws, labor laws, warehousing laws, and traffic regulations. Since each state has its own commercial code along with different contract requirements, working conditions, and regulations on warehouse operations, you have to read each state's commercial codes carefully and comply with them.

(3) Taxes and regulations

Companies must comply with the taxes and regulations of each state, including sales taxes on goods, corporate income tax, and workers' salaries. They must also observe state regulations, such as environmental protection and labor safety regulations.

Contents

• (1) Basic knowledge of logistics in the U.S. and deregulation of logistics
• (2) Laws, regulations, and rules that you should know for warehouse management in the U.S.
• (3) Key points of IT utilization in logistics operations in the U.S.
• (4) WMS, with a track record of adoption in many countries and regions, now also available in the U.S.!
• Back to Global Support Top