The SAFE Act:
A Clear Standard for California's Staffing Industry
Staffing Agency Fair Employment Act. Real accountability. Verification before harm. Sponsored by State Senator Eloise Gomez Reyes.
No Verification. No Registration.
No Accountability.
California has the largest temporary staffing market in the United States, generating more than $41 billion in annual revenue and placing millions of workers every year.
Yet unlike garment contractors, farm labor contractors, janitorial services, and talent agencies, temporary staffing agencies are not required to meet a statewide registration standard before they begin operating.
Today, a staffing agency can start placing workers without first proving that workers' compensation coverage is valid, payroll taxes are properly structured, financial liabilities are disclosed, or ownership history is transparent.
Enforcement typically begins only after harm has occurred. Meanwhile, operators dissolve and reopen under new names, and investigations can stretch across years and multiple agencies.
According to the California Department of Insurance, chargeable fraud in a single year reached approximately $1.2 billion. This is not a partisan issue. It is a market integrity issue.
Workers Left Uninsured
Injured workers discover they have no valid coverage, leading to delayed or denied medical care.
Honest Employers Undercut
Responsible businesses cannot compete with operators who skip insurance and payroll taxes.
Taxpayers Bear the Cost
Public systems, including the Uninsured Employers Benefits Trust Fund, absorb preventable costs.
Operators Dissolve and Restart
Bad actors shut down and reopen under new names, continuing the same fraud without consequence.
What Is the SAFE Act?
The Staffing Agency Fair Employment Act creates a clear, preventative regulatory framework for staffing agencies operating in California. It aligns the staffing industry with how California already regulates other high-risk labor sectors.
Punishment After Harm
No front-end verification. Enforcement begins only after workers are injured, employers are defrauded, and taxpayers absorb the cost.
Verification Before Harm
Mandatory registration, verified insurance, financial disclosure, and ownership transparency before agencies begin operating.
What the SAFE Act Would Do
Together, these safeguards introduce predictable, enforceable standards across the marketplace.
Mandatory Annual Registration
Require all staffing agencies to register annually with the Labor Commissioner.
Verified Workers' Compensation
Require verified proof of active workers' compensation coverage before operating.
Financial Disclosure and Surety Bonds
Require financial disclosure and surety bond protections to demonstrate capacity.
Background and Ownership Checks
Establish background checks and ownership transparency for all operators.
Stop-Work Orders
Authorize stop-work orders for operators discovered to be uninsured.
Public Registry
Create a public registry of compliant staffing agencies accessible to all.
Client Verification
Require businesses to verify agency registration before engaging staffing services.
Enforceable Remedies
Provide enforceable remedies and penalties against unregistered operators.
Who Benefits?
Workers
- Protection from uninsured employment
- Reduced risk of delayed medical care
- Greater transparency into agency legitimacy
Responsible Staffing Firms
- Fair competition on a level playing field
- Clear, predictable compliance standards
- Protection from undercutting by bad actors
Employers
- Reduced exposure to hidden liability
- Ability to verify legitimacy before engagement
- Greater confidence in staffing partnerships
Taxpayers
- Reduced cost shifting to public systems
- Protection of the UEBTF and state resources
- Accountability established before damage occurs
What the SAFE Act Is Not
Not a ban on staffing. The Act strengthens the industry by establishing clear, consistent rules for all participants.
Not anti-business. Most staffing firms operate responsibly. The SAFE Act reinforces their competitive position in the market.
Not punitive toward responsible operators. It targets only those who refuse to meet baseline accountability standards.
The Bigger Picture
California is one of the few major labor markets without comprehensive front-end registration for staffing agencies.
As contingent labor grows, so does the risk. Without verification standards, fraud can undermine wage integrity, distort workers' compensation systems, create unfair pricing advantages, and shift costs onto compliant businesses.
The SAFE Act introduces structure where fragmentation exists today. It aligns staffing with how California already regulates other high-risk labor industries.
Meet the Author & Make Your Voice Heard
SB 1032 was authored by Senator Eloise Gomez Reyes. Show your support by writing a letter to her office — every voice helps move this legislation forward.
Senator Eloise Gomez Reyes
Capitol Office
1021 O Street, Suite 7210
Sacramento, CA 95814
(916) 651-4029
District Office
301 E. Vanderbilt Way, Suite 400
San Bernardino, CA 92408
(909) 888-5360
Write a Letter of Support
Letters from workers, businesses, and community members demonstrate broad public support for SB 1032. Your letter can help move this legislation forward. Below is a draft template you can personalize. Final templates will be provided as they become available.
How to Submit Your Letter
Address your letter to the Senate Appropriations Committee expressing your support for SB 1032, the SAFE Act. Here are the following ways you can submit a letter (updated 2026):
Option 1 — Online Portal
Submit electronically via the California Legislature Position Letter Portal. Available to individuals, advocates, and lobbyists. You will need to create an account. See the Advocates Portal Reference Guide for more information.
Option 2 — Hand Deliver
Hand deliver to the Committee office at State Capitol, Room 412, Sacramento, CA.
Option 3 — Mail
Senate Appropriations Committee
California State Capitol, Room 412
Sacramento, CA 95814
Tips for an Effective Letter
- Keep it concise and focused on your support for SB 1032
- Include your full name, organization (if applicable), and city
- Briefly describe why this legislation matters to you
- Reference specific provisions that resonate with your experience
- Use a professional, respectful tone throughout
[Your Company Letterhead]
[Date]
The Honorable Members
California Senate Appropriations Committee
California State Capital, Room 412
Sacramento, CA 95814
RE: SB 1032 (Reyes): the SAFE Act (Staffing Agency Fair Employment Act) – SUPPORT
Dear Chair and Members of the Committee:
On behalf of [Company/Organization Name], I am writing to express our strong support for SB 1032, the Staffing Agency Fair Employment (SAFE) Act.
SB 1032 has already passed the Senate Judiciary Committee, confirming that its legal framework and enforcement mechanisms are sound. As the bill now moves to Appropriations, we respectfully submit that it should be viewed not as a cost driver, but as a revenue-protecting, cost-avoidance measure that strengthens the financial integrity of multiple state systems.
Fiscal Impact: Preventing Systemic Cost Shifting
California's current lack of a comprehensive registration and accountability framework for staffing agencies has enabled conditions where noncompliance can shift substantial costs onto public systems, compliant employers, and taxpayers.
One of the most direct fiscal impacts is on the Uninsured Employers Benefits Trust Fund (UEBTF), which is responsible for covering claims when employers fail to secure valid workers' compensation insurance.
- The UEBTF is funded through law-abiding employers — not violators
- When employers operate without valid coverage, the state and compliant businesses absorb the cost
- Uninsured employer claims and delayed recovery efforts continue to place ongoing financial pressure on the fund
SB 1032 directly addresses this issue by requiring verified workers' compensation coverage tied to actual payroll, along with transparency and enforcement tools to prevent uninsured operations before claims occur.
Revenue Protection Impact: Payroll Taxes and Premium Integrity
Noncompliant staffing structures can erode state and federal revenue through underreporting of payroll, misclassification, and complex entity structures.
These practices directly impact:
- State payroll tax collections (EDD contributions)
- Unemployment and disability insurance funding
- Workers' compensation premium calculations
SB 1032 restores integrity by aligning reported payroll with actual workforce activity and increasing transparency.
Cost Avoidance: Reducing Enforcement Burden
Current enforcement is reactive and resource-intensive. SB 1032 introduces a preventative compliance framework including registration, ownership disclosure, and early enforcement tools that allow agencies to identify and address noncompliance before harm occurs — reducing the cost burden on enforcement agencies and the public.
Economic Stability: Supporting Fair and Compliant Markets
Noncompliant operators create artificial cost advantages, distorting the marketplace and harming ethical businesses that play by the rules. SB 1032 helps level the playing field by establishing a uniform standard all agencies must meet before operating in California.
Conclusion
SB 1032 represents a fiscally responsible solution to improve transparency, reduce cost-shifting, and protect state revenue. The bill does not create new bureaucratic burden — it creates accountability where none currently exists.
We respectfully urge the Committee to support SB 1032 and allow it to continue advancing through the legislative process.
Sincerely,
[Name]
[Title]
[Company/Organization Name]
[Contact Information]
Track the Legislation
Follow the progress of SB 1032 as it moves through the California Legislature. This timeline will be updated as the bill advances through each stage.
Bill Introduced
SB 1032 introduced by Senator Eloise Gomez Reyes. Co-sponsored by UFCW Western States Council, UFCW 8 Golden State Joint Labor Management Committee, and P.O.W.E.R.
Committee Assignment
The bill has been assigned to Senate Labor, Public Employment and Retirement Committee and the Judiciary Committee for review.
Labor, Public Employment and Retirement Committee Hearing
The Labor, Public Employment and Retirement Committee heard testimony and public input and voted 3-1 to "Do Pass", clearing the bill to be referred to the Senate Judiciary Committee for further review.
Judiciary Committee Hearing
SB 1032 was heard by the Senate Judiciary Committee at 9:30 AM PT in Sacramento, chaired by Senator Thomas Umberg. The bill passed with a decisive bipartisan vote of 11-2, advancing the bill to the Senate Appropriations Committee.
Senate Appropriations Committee
SB 1032 now moves to the Senate Appropriations Committee, where the focus shifts to fiscal impact — including implementation costs and overall financial implications for the state.
Senate Floor Vote
If approved by committees, the bill will proceed to a full vote in the California State Senate.
Assembly Review and Vote
The bill will move to the California State Assembly for review, hearings, and vote.
Governor's Signature
If passed by both chambers, the bill will be sent to the Governor for signature into law.
Track SB 1032 for Free
For anyone who wants to sign up to track the progress of the legislation for free, you can go to California's official Bill Search and set up a free account.
Go to Bill SearchWe Stand With the Lawful,
Against the Lawless.
P.O.W.E.R. is proud to stand alongside:
Government Regulators and Law Enforcement
State Lawmakers Seeking Solutions
Unions and Worker Advocacy Groups
Ethical Businesses Committed to Fair Play
Support the SAFE Act
California's labor market is too large, and too important, to rely on reactive enforcement alone. SB 1032 establishes clear oversight, transparent compliance, verifiable protections, and a level competitive field.
Workers deserve protection before harm
Responsible employers deserve fair competition
Taxpayers should not absorb preventable losses
Take Action
Follow Legislative Updates
Track SB 1032 as it moves through the legislative process.
Submit Letters of Support
Send letters to the Senator's office advocating for SB 1032.
Share With Stakeholders
Spread the word to industry partners, unions, and advocacy organizations.
Verify Before Engaging
Encourage verification of agency compliance before doing business.
The SAFE Act brings California's staffing industry in line with the standards already expected elsewhere.
P.O.W.E.R.
Partnership Organization for Workplace Ethics and Reform
Protecting Workers. Exposing Fraud. Driving Reform
in the Staffing Industry
P.O.W.E.R.
Partnership Organization for Workplace Ethics and Reform
Protecting Workers. Exposing Fraud. Driving Reform in the Staffing Industry.
+1(803)715-1421
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Sacramento, CA 95811
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