SB 1032 California Senate · 2025-2026 Regular Session

Staffing agencies: registration.

Summary
Existing law requires a person engaged in certain businesses to register with the Labor Commissioner, as provided. This bill would require a staffing 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 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.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Aug 2026
Senate Passage
May 2026
Assembly Passage
Governor
Introduced Feb 10, 2026 Last action Aug 13, 2026
Maddy AI version diff · 4 comparisons

What changed between versions

04/23/26 - Amended Senate 05/14/26 - Amended Senate · 4 edits · May 14, 2026
MODERATE
The May 14 amendment to SB 1032 adds a comprehensive statutory definition of 'staffing agency' that was previously missing, clarifying which entities fall under the registration requirement by tying it to existing Labor Code definitions (temporary services employer and labor contractor) while excluding certain entities already carved out elsewhere. It also removes attorney's fees from the damages available to prevailing registered staffing agencies in enforcement actions, and simplifies the prohibition language throughout by dropping the 'verifying' requirement in favor of a straightforward registration requirement.
DEFINITION

Added a new definition of 'staffing agency' in Section 2200(c). It covers temporary services employers (Section 201.3(a)) and labor contractors (Section 2810.3(a)(3)), plus any business entity that for a fee recruits, hires, assigns, refers, places, furnishes, or supplies workers to a third-party business on a temporary, seasonal, leased, project-based, or ongoing basis. Entities excluded from the 'labor contractor' definition under Section 2810.3(a)(3)(A)-(D) are also excluded.

ENFORCEMENT

Removed attorney's fees and costs from the damages provision in Section 2207(d). Previously, a prevailing registered staffing agency was entitled to both its choice of actual or statutory damages AND reasonable attorney's fees and costs. Now it is only entitled to either actual damages or statutory damages up to $75,000, at its election.

REQUIREMENT

Simplified the prohibition in Section 2206 from 'without verifying that the staffing agency is registered' to 'without a registration.' This removes the concept of a verification duty and makes the requirement simply that the staffing agency must hold a registration.

TECHNICAL

Section 2203(b) changed from 'after review of the application, investigation, is satisfied' to 'after investigation, is satisfied,' removing 'review of the application' as a separate stated step in the commissioner's process.

Floor votes · Senate May 27, 2026

How they voted

299
Passed · 2 other
Total votes 40
May 27, 2026
D Democratic30
29 Yea 1
96% Yea
R Republican10
9 Nay 1
90% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
22
Key actions
10
Committee
6
Amendments
5
Aug 13, 2026
Lower · Passed
August 13 hearing: Held in committee and under submission.
lower
Jul 1, 2026
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (June 30). Re-referred to Com. on APPR.
lower
Jun 25, 2026
Lower · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (June 24). Re-referred to Com. on JUD.
lower
Jun 4, 2026
Committee
Referred to Coms. on L. & E. and JUD.
lower
May 27, 2026
Upper · Passed
Read third time. Passed. (Ayes 29. Noes 9. Page 4498.) Ordered to the Assembly.
upper
May 14, 2026
Upper · Passed
Read second time and amended. Ordered to second reading.
upper
May 14, 2026
Upper · Passed
From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4262.) (May 14).
upper
Apr 23, 2026
Upper · Passed
Read second time and amended. Re-referred to Com. on APPR.
upper
Apr 22, 2026
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2. Page 3977.) (April 21).
upper
Apr 8, 2026
Upper · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 3. Noes 1. Page 3794.) (April 8). Re-referred to Com. on JUD.
upper
Apr 6, 2026
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
upper
Feb 18, 2026
Committee
Referred to Coms. on L., P.E. & R. and JUD.
upper
Feb 10, 2026
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Eloise Reyes
Eloise Reyes
DDemocratic
CA
29