CA AB381

Requires state contractors and subcontractors to certify compliance with anti-human trafficking requirements for contracts entered into or renewed on or after January 1, 2026, prohibiting forced labor, document confiscation, fraudulent recruitment practices, and charging employees recruitment fees

Mandates contractors implement compliance plans with employee awareness programs, reporting processes (including the Global Human Trafficking Hotline), recruitment and wage plans, and procedures to monitor and terminate non-compliant subcontractors

Expands sanctions for violations to include requiring removal of contractor employees, terminating subcontractors, suspending contract payments, loss of award fees, declining contract options, and suspension or debarment

Requires contractors to disclose violations to contracting officers and oversight agencies, cooperate with audits and investigations, and protect suspected victims and witnesses from retaliation before returning to their country of origin

Authorizes administrative law judges to consider mitigating factors (having a compliance plan, taking remedial actions) and aggravating factors (failing to abate violations) when determining sanctions