California moves to ban offshoring for state contracts

State Assembly passes bill that prohibits contractors and sub-contractors doing business with the state from outsourcing jobs outside California

California’s Assembly has approved a bill that would ban state contractors from having work done outside the state.

The bill will require that all contractors and subcontractors doing business with the state must certify that the “contract work will be performed by people in the state of California,” according to an AP report.

Assemblywoman Carol Liu said the bill would prohibit contracts such as the one the state has with a company that operates a call centre in India for welfare and food stamp recipients.

The bill was passed 44-26 and sent to the Senate.

The Assembly also approved a related bill that would require employers to expand payroll reporting to include the number of workers in California, other states and overseas.

“There’s a lot of conflict about the number of jobs sent offshore,” Assemblyman Paul Koretz told the AP. “Many have argued that it’s premature to act until we have the numbers. This will give us those numbers.”

Critics of the bill to prohibit offshoring said it will inevitably lead to higher costs for the state. The bill only applies to government contracts and doesn’t attempt to stop private firms in California from outsourcing jobs.

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