Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250SB__103299INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>1032</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Reyes</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Reyes</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add Part 8.7 (commencing with Section 2200) to Division 2 of the Labor Code, relating to employment.</ns0:Title>
<ns0:RelatingClause>employment</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Staffing agencies: registration.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law requires a person engaged in certain businesses to register with the Labor Commissioner, as provided.</html:p>
<html:p>This bill would require a staffing agency to annually register with the commissioner. The bill would prohibit the commissioner from registering or renewing a registration, unless the staffing agency satisfies certain conditions, including submitting an application to the commissioner for registration or renewal of registration and providing the commissioner proof of a current workers compensation policy, as provided. If the commissioner finds that the staffing agency does not have a current worker’s compensation insurance, the bill would require the commissioner to 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 verifying that the staffing agency is registered 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 verifying that the staffing agency is registered, as provided. The bill would authorize the commissioner to promulgate regulations and rules necessary to carry out these provisions.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_BAB6DB6F-E1C2-48B0-AE81-12402ACA9D3A">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:LAB:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'8.7.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 2200" ns3:type="locator">
Part 8.7 (commencing with Section 2200) is added to Division 2 of the
<ns0:DocName>Labor Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_0E2AF2C4-D4B4-410B-B226-534E8534ADC0" type="PART">
<ns0:Num>8.7.</ns0:Num>
<ns0:LawHeadingVersion id="id_FD90B348-6686-45A7-9F74-9AF19F3442D4">
<ns0:LawHeadingText>Staffing Agencies</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_BDDB5DC2-747F-4359-9434-430B6D572366">
<ns0:Num>2200.</ns0:Num>
<ns0:LawSectionVersion id="id_7EBC0787-48A1-405D-8F63-E066D9EBE9F6">
<ns0:Content>
<html:p>For the purposes of this part, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Commissioner” means the Labor Commissioner.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Director” means the Director of Industrial Relations.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_AFC96712-A2AA-467B-892E-15EB69A32DE3">
<ns0:Num>2201.</ns0:Num>
<ns0:LawSectionVersion id="id_45E87ED9-ABBE-442F-AB7D-03D5CC04C689">
<ns0:Content>
<html:p>The commissioner shall promulgate all regulations and rules necessary to carry out the provisions of this part.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_49D75D7E-5B48-408C-B763-1CF8B5615B7C">
<ns0:Num>2202.</ns0:Num>
<ns0:LawSectionVersion id="id_046BE632-0893-48A1-B42B-3C2DC37B5B8C">
<ns0:Content>
<html:p>A staffing agency shall annually register with the commissioner.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_F61D0F68-1082-409D-8E21-0D54F24733C7">
<ns0:Num>2203.</ns0:Num>
<ns0:LawSectionVersion id="id_60840C9E-CDFB-418C-86F2-7861987336DA">
<ns0:Content>
<html:p>The commissioner shall not permit any staffing agency to register or to renew a registration, until all of the following conditions are satisfied:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The staffing agency has submitted an application to the commissioner for registration or renewal of a registration that contains all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The names and addresses of all persons, except bona fide employees on stated salaries, financially interested, either as partners, associates, or profit sharers, in the staffing agency together with the amount of their respective interests.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The financial status of the staffing agency.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The business affiliation of the staffing agency.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commissioner, after review of the application, is satisfied as to the character, competency, and responsibility of the staffing agency.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The staffing agency has paid an initial or renewal registration fee to the commissioner of five thousand dollars ($5,000).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The staffing agency has provided the commissioner proof that a current workers’ compensation insurance policy is in effect for the employees of the person.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_21AE6874-A73F-45D5-97EF-22EAF71893D6">
<ns0:Num>2204.</ns0:Num>
<ns0:LawSectionVersion id="id_3EA310B5-5CD8-448E-B3CD-F2A6D1DD0DB2">
<ns0:Content>
<html:p>If the commissioner finds that a staffing agency does not have a current worker’s compensation insurance in effect for the employees of the person, the commissioner shall notify the director. The director shall issue and serve on the person a stop order pursuant to Section 3710.1.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_35C4A39C-0CE7-4E64-9BB4-5996F2F19A21">
<ns0:Num>2205.</ns0:Num>
<ns0:LawSectionVersion id="id_F1B951A6-13CE-43C2-920A-4954C2BF318D">
<ns0:Content>
<html:p>On the website of the Department of Industrial Relations, the commissioner shall post a list of registered staffing agencies that includes both of the following for each registered staffing agency:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The name, address, registration number, and effective dates of registration.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The carrier for the current workers’ compensation insurance policy that is in effect for the staffing agency’s employees.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_B7251B46-19F5-4727-A08B-EDC1B4A367A9">
<ns0:Num>2206.</ns0:Num>
<ns0:LawSectionVersion id="id_20C046E1-8AF5-4410-BD7A-BF18371D9050">
<ns0:Content>
<html:p>A business shall not use the services of a staffing agency without verifying that the staffing agency is registered pursuant to this part.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_1B956368-CD96-4B65-923A-E09B8C6A071A">
<ns0:Num>2207.</ns0:Num>
<ns0:LawSectionVersion id="id_BE5F5EFC-A91B-43F1-BC51-3BA28C7C1858">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In addition to other remedies permitted by law, a registered staffing agency under this part may bring an action in superior court against an unregistered staffing agency or a business that uses the services of a staffing agency without verifying that the staffing agency is registered.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In order to prevail in action brought pursuant to subdivision (a), a registered staffing agency shall demonstrate actual harm resulting from activity of an unregistered staffing agency or a business that uses the services of a staffing agency without verifying that the staffing agency is registered.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In an action pursuant to subdivision (a), the court may enter an order enjoining the
defendant from operating an unregistered staffing agency on or from using the services of a staffing agency without verifying that the staffing agency is registered.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A registered staffing agency that prevails in an action brought pursuant to subdivision (a) shall be entitled to both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Either of the following damages, at the election of the prevailing registered staffing agency:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Actual damages caused by the unregistered staffing agency or a business that used the services of a staffing agency without verifying that the staffing agency is registered.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Statutory damages not to exceed seventy-five thousand dollars ($75,000).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Reasonable attorney’s fees and
costs.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>