Panel advances SB 1032 to register and oversee temporary staffing agencies

SB 1032, presented to the Labor and Employment subcommittee, would create a registration and oversight framework for temporary staffing agencies, requiring proof of workers'‑compensation coverage and establishing enforcement tools including a private right of action to challenge unregistered operators.

Supporters — including unions and ethical staffing firms — testified that unlicensed operators can leave workers uninsured and depress wages. Alberto Torrico of UFCW and James Phillips of Enviro Staffing said registration would protect workers and level the playing field for compliant firms.

Opponents, including the California Staffing Professionals and small staffing business owners, urged no votes because the bill (as drafted) excludes Professional Employer Organizations (PEOs) in a way that could create a loophole, lacks a statutory registration fee cap, and contains a private right of action that could be misused. Small businesses said high or open‑ended fees and litigation exposure could deter new entrants.

Members pressed authors on enforcement capacity, fee levels and how registration would prevent underreporting of payroll. The subcommittee passed SB 1032 and referred it to Judiciary.