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. SB 1032 has cleared all Senate committees and is now advancing to the full Senate floor vote. Write to your State Senator and ask for their YES vote on the SAFE Act.
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
Let California State Assembly know you support the SAFE Act and ask for their vote to pass the bill into law. 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 and instructions on how to submit the letter online. Please be sure to also send a copy of the letter to [email protected] so we can maintain the letter on file and track the progress at the committees.
How to Submit Your Letter
A separate letter needs to be sent to each Assembly committee as the bill progresses. The current committee is the California State Assembly Committee on Appropriations.
Support letters may be sent by mail, or through the California Legislative Position Letter portal.
Step 1 — Write Your Letter
A sample letter may be downloaded below. Be sure to put your letter on company letterhead if sending on behalf of an organization.
Step 2 — Choose How to Send Your Letter
Online: The Committee prefers this method. Visit https://calegislation.lc.ca.gov/Advocates/ to submit your letter. If you have not submitted a letter in the past, you will need to establish an online account. This process is easy and will take only a few minutes. After completing a one-time registration to obtain a username and password, log in to submit your position letter.
By Mail: Address physical letters to:
California State Assembly Appropriations Committee
1021 O Street, Suite 8820
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
[Organization Letterhead]
[Date]
The Honorable Members
California State Assembly Appropriations Committee
1021 O Street, Suite 8220
Sacramento, CA 95814
RE: SUPPORT FOR SB 1032 (Gómez Reyes) – Staffing Agency Fair Employment (SAFE) Act
Dear Honorable Members:
On behalf of [Organization Name], we respectfully urge your AYE vote on SB 1032, the Staffing Agency Fair Employment (SAFE) Act.
As the Assembly Appropriations Committee evaluates the fiscal implications of this legislation, we respectfully submit that the central question is not what SB 1032 will cost, but rather what California continues to lose each year without meaningful oversight of the temporary staffing industry.
SB 1032 should be viewed as a fiscally responsible investment that strengthens compliance with existing law, reduces long-term public liabilities, protects injured workers, and promotes fair competition for ethical employers.
Simply put, preventing illegally uninsured staffing agencies from operating is far less expensive than paying workers' compensation claims after workers have already been injured.
For these reasons, we respectfully request your AYE vote on SB 1032.
Thank you for your thoughtful consideration.
Respectfully,
[Name]
[Title]
[Organization]
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 vote of 11-2, advancing the bill to the Senate Appropriations Committee.
Senate Appropriations Committee
SB 1032 has cleared the Senate Appropriations Committee and is now advancing toward a vote on the full Senate floor.
Senate Floor Vote
SB 1032 passed the full California Senate with a strong majority, 29 yes votes to 9 no votes. The bill now advances to the California State Assembly for consideration.
Assembly Committee on Labor and Employment Hearing
The Assembly Committee on Labor and Employment heard testimony and public input and voted 5 to 2 to "Do Pass", clearing the bill to be referred to the Assembly Committee on Judiciary for further review.
Assembly Committee on Judiciary Hearing
The Assembly Committee on Judiciary heard testimony and voted 9 to 3 to approve SB 1032. The bill now advances to the Assembly Committee on Appropriations for fiscal review.
Assembly Committee on Appropriations Hearing
SB 1032 is now in the fiscal review phase. The bill will be heard by the Assembly Committee on Appropriations. Support letters should be submitted 7 days prior to the hearing. If the bill clears this committee, it will advance to a full vote on the Assembly floor.
Assembly Floor Vote
Following committee review, SB 1032 will be brought to a vote by the full California State Assembly.
Senate Concurrence
Because the Assembly amended portions of the bill during the Committee process after the Senate passed it, the bill will return to the Senate. The Senate then votes only on whether it agrees ("concurs") with the Assembly's amendments.
Enrollment
After both chambers approve the bill, it goes through an administrative enrollment process: the bill is proofread, enrolled, signed by the presiding officers of both chambers, and sent to the Governor. This is largely an administrative step.
Governor's Signature
After the bill is passed by both chambers, it will be sent to Governor Newsom for signature into law. The Governor then has several options: sign the bill into law, veto the bill, or allow it to become law without a signature if no action is taken within the constitutional time period after presentment.
Effective Date
Unless the bill specifies a different operative date or includes a delay clause, SB 1032 would become effective on January 1, 2027.
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.
Copyright 2026 Partnership Organization for Workplace Ethics and Reform.
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