The case centers on a former prisoner who says he was forced to manufacture Milwaukee Tool-branded gloves for a supplier while incarcerated at a Chinese prison. Milwaukee Tool, the Wisconsin-based tool manufacturer, maintains that it has found no evidence of forced labor in its supply chain.

The legal question before the appeals court is whether a federal anti-trafficking statute allows victims to sue U.S. companies that knowingly benefit from forced labor abroad. The outcome could have broad implications for how American corporations are held accountable for labor conditions deep in their global supply chains.

The lawsuit was filed in federal court and has now reached the appellate stage, where a panel of judges is weighing the scope of the law. No ruling has been issued yet.

For Wisconsin workers and consumers, the case raises uncomfortable questions about the hidden costs of global manufacturing. Milwaukee Tool is a prominent brand with a strong local identity, and the allegations—if proven—would challenge the company’s assurances about ethical sourcing.

Advocates for labor rights say the case is a test of whether U.S. courts will serve as a check on corporate supply chains that stretch into countries with weak labor protections. The company has denied wrongdoing and says its supply chain meets legal standards.

The appeals court’s decision is expected in the coming months.