Staffing agencies: registration.

Plain English Breakdown

The bill summary and digest do not provide specific details on enforcement mechanisms for penalties.

Staffing Agencies Must Register

The bill requires staffing agencies to register with the Labor Commissioner and meet certain conditions before doing business in California.

What This Bill Does

• Requires staffing agencies to register with the Labor Commissioner before conducting any business activities in California and annually thereafter.
• Prohibits registration or renewal unless the agency provides proof of workers' compensation insurance for all employees.
• Allows the commissioner to deny, suspend, or revoke a registration if an agency does not have proper insurance after a hearing.
• Requires the Labor Commissioner to post a list of registered staffing agencies on their website.
• Forbids businesses from using unregistered staffing agencies.

Who It Names or Affects

• Staffing agencies that want to do business in California
• Businesses hiring temporary workers through staffing agencies

Terms To Know

Labor Commissioner

The official who enforces labor laws and regulations.

Workers' compensation insurance

Insurance that covers medical expenses and lost wages for workers injured on the job.

Limits and Unknowns

• Does not specify what happens if a staffing agency fails to register or renew registration.
• The bill does not provide details about how penalties will be enforced.
• It is unclear how existing staffing agencies must comply with this new requirement.

Official Summary Text

SB 1032, as amended, Reyes.
Staffing agencies: registration.
Existing law requires a person engaged in certain businesses to register with the Labor Commissioner, as provided.
This bill would require a staffing
agency
agency, as defined,
to register, as prescribed, with the commissioner before conducting any business in this state and annually thereafter. The bill would prohibit the commissioner from registering or renewing a registration, unless the staffing agency satisfies certain conditions, including submitting an application that is certified under penalty of perjury to the commissioner for registration or renewal of registration and providing the commissioner proof of a current workers’ compensation policy
in effect for all employees, as provided. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
If the commissioner, at any time, finds that the staffing agency does not have the current workers’ compensation insurance policy in effect for all employees, this bill would require the commissioner to deny, suspend, or revoke the registration, after a hearing, and notify the Director of Industrial Relations of that matter. The bill would also require the commissioner to post a specified list of registered staffing agencies on the internet website of the Department of Industrial Relations. The bill would prohibit a business from using the services of a staffing agency without a registration pursuant to these provisions. The bill would authorize a registered staffing agency to bring an action against an unregistered staffing agency or a business that uses the services of a staffing agency without a registration, as
provided, and would authorize the court to enter
into
an order to enjoin the defendant from engaging in any business as a staffing agency without a registration or using the services of a staffing agency without a registration. The bill would authorize the commissioner to promulgate regulations and rules necessary to carry out these provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF