Plain English Breakdown
The official bill summary provided is truncated at the end, so some details about steps contractors must take to fix violations may be incomplete in this explanation.
New Rules for State Contracts on Forced Labor and Human Trafficking
This law requires companies bidding on state contracts to certify they do not use forced labor or human trafficking, with new rules starting in January 2026.
What This Bill Does
- Requires contractors to certify that their work does not involve forced labor or human trafficking before getting a contract.
- Updates the definition of forced labor to include knowingly obtaining labor through threats of serious harm or physical restraint against workers or others.
- Mandates that companies create a compliance plan and check if their subcontractors follow these rules by having them sign certifications.
- Allows state agencies to stop payments, remove employees from contracts, or end subcontracts if violations occur.
- Requires officials to report credible information about violations to law enforcement and oversight agencies.
Who It Names or Affects
- Companies that bid on or hold state government contracts for goods like clothing, equipment, or supplies (excluding public works).
- Subcontractors who work with companies holding these state contracts.
- Employees of contractors and subcontractors working on these projects.
- State agencies responsible for awarding contracts and investigating complaints.
Terms To Know
- Forced labor
- Knowingly getting someone to work by using threats of serious harm or physical restraint against them or others.
- Compliance plan
- A written set of steps a company takes to make sure it follows the law and does not use forced labor.
- Due diligence
- The careful effort a contractor must take to check that their subcontractors are following the rules, including getting signed certifications from them.
Limits and Unknowns
- These new rules only apply to contracts entered into or renewed on or after January 1, 2026.
- The law does not cover public works contracts, which have different existing rules.
- An administrative judge can waive sanctions if a company proves it acted in good faith.