Committee Passes Staffing Agency Bill

A California Senate committee passed a bill that would require staffing agencies to provide proof of workers' compensation coverage and register with the labor commissioner.

The Senate Committee on Labor, Public Employment and Retirement voted 3-1 to pass SB 1032, which would require staffing agencies to register before conducting any business in California, and annually thereafter.

Firms would be required to pay registration fees to be determined by the labor commissioner under a recent amendment to the bill. An earlier version would have imposed a flat $5,000 annual registration charge.

Staffing agencies would also be required to provide proof of a current workers' compensation policy. The commissioner, upon finding that a staffing agency does not have a current workers' compensation policy, would be required to deny, suspend or revoke the registration after holding a hearing. The commissioner would also be required to notify the Department of Industrial Relations, which would be required to issue a stop-work order to the agency.

The DIR would be required to publish an online list of registered staffing agencies. Registered staffing agencies would be allowed to seek injunctive relief without demonstrating actual harm under the bill. The bill would allow actions against unregistered staffing firms, as well as businesses that use the services of a staffing agency, without first verifying its registration.

A staffing agency that prevails in a lawsuit would have the choice of collecting $75,000 in statutory damages or actual damages, in addition to reasonable attorney fees and costs. The Senate Judiciary and Appropriations committees still have to pass the bill before it can be called for a floor vote.

This article was originally published by WorkCompCentral on April 8, 2026.
Source: WorkCompCentral | workcompcentral.com
Link: https://www.workcompcentral.com/news/article/id/fa5035e8b0de4c275eba197e49b345bc1d44fcef