Bill > AB381

This bill amends California's Public Contract Code to strengthen protections against forced labor and human trafficking in state contracts. Starting January 1, 2026, the bill will require state contractors and subcontractors to certify that they have implemented comprehensive compliance plans to prevent various prohibited activities related to human trafficking, such as destroying employee identification documents, using fraudulent recruitment practices, charging recruitment fees, and failing to provide safe housing or employment contracts. Contractors must conduct due diligence to ensure their agents and subcontractors are not engaging in these activities, and must notify employees about prohibited practices and potential consequences for violations. The bill expands the definition of forced labor and introduces new requirements for contractors to investigate and report potential violations, including notifying state agencies and law enforcement about credible information of misconduct. If violations occur, contractors may face sanctions including contract termination, employee removal, suspended payments, and potential removal from bidder lists. The administrative law judge overseeing potential sanctions can now consider both mitigating and aggravating factors when determining appropriate penalties. The bill aims to create more robust protections for workers and prevent exploitative labor practices in state contracts.

Budget and Finance, Government Affairs, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB381