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AB 1245CALIFORNIASession 20252026
High Impact

California AB 1245 requires state contractors to certify human trafficking compliance for contracts over $550,000

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

August 13, 2026

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The Frame

What this does

This measure increases the compliance burden for companies doing business with the state by requiring active monitoring of supply chains and labor practices to prevent human trafficking, with significant financial penalties for non-compliance.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

State contractors

They must implement new compliance plans, conduct due diligence on subcontractors, and face potential contract termination or payment suspension for violations.

State subcontractors

They are required to sign certifications of compliance and are subject to the same anti-trafficking prohibitions as prime contractors.

What changed

Last recorded activity August 13, 2026.

What's next

Introduced.

Summary

Starting January 1, 2027, state contractors and subcontractors with contracts exceeding $550,000 must certify they have implemented human trafficking compliance plans and conducted . The bill expands existing anti-forced labor requirements and authorizes new sanctions, including payment suspension and mandatory removal of employees or subcontractors involved in violations.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

This measure increases the compliance burden for companies doing business with the state by requiring active monitoring of supply chains and labor practices to prevent human trafficking, with significant financial penalties for non-compliance.

Frequently Asked Questions

Does this apply to all state contracts?
No, it applies specifically to contracts or renewals with an estimated value exceeding $550,000.
What happens if a subcontractor violates these rules?
The contractor is responsible for ensuring subcontractor compliance and may be required to terminate the subcontractor or face other sanctions like payment suspension.

News Coverage

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Sponsors

Connected Entities

personAdministrative Law JudgeOfficial responsible for hearing appeals regarding contract sanctions.Map →
organizationCalifornia State LegislatureThe legislative body proposing the bill.Map →

Sources

Open source document

openstates.org

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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