News California AB 2653 Sweatfree AI Code 2026
April 22, 2026 — California AB 2653 Sweatfree AI Code of Conduct Advances Through Assembly Committees
Two California Assembly committees have approved Assembly Bill 2653, which establishes a Sweatfree AI Code of Conduct for state contracts involving AI products that require data enrichment services. The bill addresses growing concerns about labor exploitation in AI training data supply chains.
Key Provisions
AB 2653 adds AI product contracts requiring data enrichment services to existing contractor responsibility programs, imposing several new requirements on vendors supplying AI products to the state:
- Certification requirement: Bidders on state AI contracts must certify that nothing furnished to the state has been laundered or produced by sweatshop labor, forced labor, or other prohibited labor practices.[1]
- Sweatfree AI Code of Conduct: The Department of Industrial Relations (DIR) must develop and implement a Sweatfree AI Code of Conduct by July 1, 2027, to be signed by all bidders on state contracts and subcontracts.[2]
- Advisory panel: An advisory panel must be established with a majority of members being trade union and civil society organization experts who volunteer their time to help develop the code.[1]
- Independent monitoring: The code must establish a process for independent monitoring and complaint investigations conducted by the DIR, bona fide labor organizations, or nonprofit organizations meeting specific governance criteria.[1]
- Subcontractor requirements: Contractors must ensure their subcontractors adhere to the Sweatfree AI Code of Conduct requirements where applicable laws are absent or insufficient.[1]
Legislative Progress
AB 2653 was approved by two Assembly committees before being sent to Appropriations:
- Assembly Committee on Labor and Employment: Approved 11-1 on April 8, 2026[2]
- Assembly Committee on Privacy and Consumer Protection: Approved on April 22, 2026[2]
Following these approvals, the bill was sent to the Assembly Committee on Appropriations on April 22, 2026, with a recommendation to the consent calendar.[2]
Context
AB 2653 is believed to be the first US legislation to specifically address labor conditions in AI data enrichment supply chains. Workers who label, annotate, and curate training data for AI systems — often based in East Africa and Southeast Asia — have reported low wages, psychological harm from exposure to violent content, and poor working conditions. The bill extends California's existing Sweatfree Code of Conduct framework, which previously covered goods and services, to explicitly include AI products.[1]
See Also
- California AB 2713 — AI Transparency Act Adjustment
- California AI Bills Advance to Appropriations
- California Appropriations Advances AI Bills