Back to California

AB-1245 • 2026

State contracts: certification process: forced labor and human trafficking.

State contracts: certification process: forced labor and human trafficking.

Labor
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Stefani
Last action
Official status
Senate - Appropriations
Effective date
Not listed

Plain English Breakdown

The effective date is listed as January 1, 2027, in the bill summary, but no final signature or enactment date is provided in the source material.

New Rules for State Contracts on Forced Labor and Human Trafficking

This law adds new rules requiring companies bidding on large state contracts to prove they do not use forced labor or allow human trafficking in their work.

What This Bill Does

  • Requires contractors with deals over $550,000 starting January 1, 2027, to certify that no part of the contract involves forced labor or human trafficking.
  • Updates the definition of forced labor to include getting workers through threats of serious harm or physical restraint.
  • Mandates that contractors and subcontractors create a compliance plan before winning a bid.
  • Requires companies to tell workers about banned activities and what punishments will happen if they break the rules.
  • Allows state agencies to stop paying contracts, remove employees from work, or end subcontracts if rules are broken.

Who It Names or Affects

  • Companies bidding on state government contracts worth more than $550,000 for goods like clothing and equipment.
  • Subcontractors hired by those companies to help complete the work.
  • Employees of contractors and subcontractors who perform work under these agreements.

Terms To Know

Forced labor
Getting someone to work or provide services through threats, harm, or physical restraint.
Compliance plan
A written set of steps a company takes to make sure it follows the law and stops bad behavior.

Limits and Unknowns

  • These new rules only apply to contracts entered into or renewed on or after January 1, 2027.
  • The law does not cover public works construction projects; it focuses on buying goods like apparel and equipment.
  • State agencies may limit their investigations of complaints based only on credible information provided.

Bill History

  1. California Legislative Information

    Senate - Appropriations

Official Summary Text

State contracts: certification process: forced labor and human trafficking.