1886 is after The Compromise of 1877 which ended Reconstruction and lead to the rise of largely white supremacist Redeemer governments.
Though versions of the Convict Lease System had started earlier, even before the Civil War, it was in full force by 1886 and even accounted for a significant portion of many states’ annual revenue.
The supply of this labor was dramatically influenced by new laws that were selectively enforced, such as vagrancy laws that might apply to anyone traveling without immediate proof that they had an employer, “pig laws” that made petty thefts often convicted with poor standards of proof subject to extended prison sentences, and in some cases offenses like “mischief” and “insulting gestures”. There were even people who were impressed into this system as a result of violating the terms of a labor contract, which possibly becomes even more difficult to distinguish from slavery.
If you were caught up in this system, you were virtually powerless. Federal troops were long gone, there were instances of lawfully elected governments that had been overthrown by insurrection, and if you exposed the absurdity of this system and threatened it, you could easily be publicly lynched with no chance of repercussions for your murderers.