CA AB1245

Requires contractors on state contracts exceeding $550,000 (entered into or renewed on or after January 1, 2027) to certify compliance with prohibitions against human trafficking, forced labor, and related abuses by contractors, subcontractors, employees, and agents.

Prohibits specific practices including destroying or confiscating employee identity documents, using misleading recruitment practices, charging recruitment fees to employees, and providing substandard housing.

Mandates contractors implement compliance plans that include employee awareness programs, reporting processes for trafficking concerns, and procedures to monitor and terminate subcontractors engaged in prohibited activities.

Authorizes sanctions for violations including contract termination, removal from bidder lists for up to 360 days, suspension of contract payments, and penalties of $1,000 or 20% of the value of goods produced in violation.

Requires contractors to disclose violations to contracting officers and state oversight agencies, cooperate with audits and investigations, and protect employees suspected of being trafficking victims or witnesses from retaliation.