Senator Reyes Calls for State Regulation of Temporary Staffing Agencies
Senator Reyes Calls for State Regulation of Temporary Staffing Agencies
The SAFE Act will provide proactive oversight to protect workers and prevent fraud
Sacramento, CA — Senator Eloise Gómez Reyes (D–Colton), today introduced legislation that would create a clear, common-sense regulatory framework for temporary staffing agencies, similar to what already exists for contractors and other high-risk industries. Key elements of the Senate Bill (SB) 1032, or the Staffing Agency Fair Employment ACT (SAFE Act), would require mandatory registration, proof of workers’ compensation insurance and financial capacity, and transparency for workers and businesses. The legislation will be assigned to policy and fiscal committees in the coming days.
“California’s fragmented labor enforcement system leaves workers and families exposed,” said Senator Reyes. “This bill establishes clear oversight, real accountability, and upfront verification so staffing agencies are complying with the law before harm can occur. I look forward to engaging with stakeholders as we strengthen protections for workers and level the playing field for responsible employers.”
"The lack of oversight in the temporary staffing industry has led to some bad actors taking advantage of a system that allows them to misclassify workers and harm workers," said Amber Parrish, Executive Director, United Food and Commercial Workers Western States Council. "The SAFE Act will put in place basic protections to protect workers who are just trying to get a job to feed their families. UFCW is proud to stand beside California's working families and co-sponsor the SAFE Act."
"California is the largest temporary staffing market in the United States—and yet is one of the least regulated. That imbalance has created fertile ground for staffing fraud, workers’ compensation abuse, and increasingly sophisticated financial crimes including tax evasion and wage theft.” Said Dan Kramer from the Partnership Organization for Workplace Ethics and Reform, (P.O.W.E.R.) who is a co-sponsor of the bill. "Our membership thanks Senator Reyes for authoring the SAFE Act - and looks forward to working with her and other lawmakers, labor leaders, employers, and enforcement stakeholders to advance the legislation and strengthen integrity within California’s contingent labor market.”
California has the largest temporary staffing market in the nation, with staffing firms generating over $41 billion in annual revenue and employing millions of workers over the course of a year. Despite this scale, California lacks a dedicated licensing and regulatory framework for temporary staffing agencies, allowing gaps in oversight that can put workers, honest businesses, and taxpayers at risk. Other industries that place or manage third-party workers, such as the garment industry, farm labor contractors, car washes, janitorial services, and talent agencies, are already subject to specific licensing or registration requirements in California. The SAFE Act would align temporary staffing agencies with this existing regulatory approach to protect workers and promote compliance.
SB 1032 was introduced on February 10 and will be assigned to policy committees for analysis and hearing dates in the coming days. To learn more about Reyes, visit https://sd29.senate.ca.gov/.