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
SB 1032 was authored by Senator Eloise Gomez Reyes. The bill passed the California State Senate 29-9 and cleared the Assembly Labor & Employment and Judiciary Committees before being held in Assembly Appropriations on August 13, 2026. Join P.O.W.E.R. to help shape the 2027 proposal.
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
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.
Held in Assembly Appropriations
On August 13, 2026, SB 1032 was held by the California Assembly Appropriations Committee and will not advance during the 2026 legislative session. While we are disappointed in the outcome, the effort was far from a failure.
Returning to Sacramento
P.O.W.E.R. is fully committed to returning to Sacramento in the 2027 legislative session with a revised proposal.
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 SearchWhat We Accomplished
- Passed the California State Senate 29-9
- Cleared every Senate committee
- Passed the Assembly Labor & Employment Committee
- Passed the Assembly Judiciary Committee
- Built an association of workers, employers, insurers, and advocates
The SAFE Act started an important conversation. It demonstrated that the problem is real. It built substantial legislative support. And it created a foundation for what comes next.
We 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.
Help Shape the 2027 Bill
Join P.O.W.E.R. and provide input as we build the next proposal.
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.
All rights reserved.