New California Bill Seeks Greater Oversight of the Staffing Industry
California lawmakers are reviewing newly introduced legislation aimed at increasing oversight of the temporary staffing industry and strengthening worker protections.
The proposed measure, known as the Staffing Agency Fair Employment Act (SAFE Act), would require staffing agencies operating in California to register with the state and provide verified proof of workers’ compensation coverage and sufficient financial capacity.
According to industry leaders, enforcement efforts in recent years have revealed cases involving payroll tax violations and failures to maintain proper workers’ compensation insurance. These situations, they say, create an uneven playing field for agencies that comply with the law and meet their legal obligations.
The SAFE Act is designed to take a preventative approach. Rather than relying solely on enforcement after violations occur, the bill would establish structured oversight intended to ensure compliance before harm occurs. It also seeks to prevent businesses from avoiding accountability by dissolving and reopening under different names.
California’s temporary staffing sector generates more than $41 billion annually and employs more workers than any other state, making regulatory clarity and accountability significant economic and public policy concerns.
Industry representatives have also raised concerns about instances where documentation related to workers’ compensation coverage has allegedly been falsified or misrepresented. When coverage is not legitimate, injured workers may face delays in medical care, and financial liability can shift to public systems.
The SAFE Act is sponsored by Sen. Eloise Gómez Reyes, D-Colton, in partnership with the nonprofit Partnership Organization for Workplace Ethics and Reform (POWER). As of this writing, no formal opposition to the bill has been registered.
Attribution & Credit
This article is a paraphrased republication of reporting originally written by Suzanne Potter and published February 11, 2026.
Original reporting credit: Suzanne Potter, Producer.
All original journalistic credit belongs to the original author and publishing outlet.
Republished for informational purposes by the Partnership Organization for Workplace Ethics and Reform (POWER).
