The following is commentary by Herb Bennett, CEO of Baran Agency, about ongoing issues regarding Black workers who are hired by temporary staffing agencies in California:
Nationwide — In communities across California, temporary staffing jobs have become a critical gateway to opportunity. For many Black workers, these jobs offer flexibility. a foothold in the workforce, a chance to earn, and a path toward stability. But too often, that promise is undermined by a system that allows bad actors to exploit workers, cheat the system, and walk away without accountability.
As someone who has spent my career working at the intersection of business, workforce development, and community advocacy, I’ve seen firsthand how the temporary staffing industry can work well — and how it can go terribly wrong.
Let’s be clear: the problem isn’t temporary staffing itself. Ethical agencies play an important role in connecting people to jobs. The problem is the lack of oversight in California that allows fraudulent operators to thrive — often at the direct expense of Black workers.
Right now, California has no comprehensive statewide system requiring staffing agencies to register, disclose ownership, or verify that they carry legitimate workers’ compensation insurance. That’s not just a policy gap — it’s an open door for abuse.
Here’s what that looks like on the ground.
Workers are recruited into jobs that seem legitimate. They show up, work hard, and expect to be paid fairly and to be protected if they’re injured. But behind the scenes, some agencies are cutting corners in dangerous ways by not paying overtime, underreporting payroll, evading taxes, stealing wages, or operating without proper workers’ compensation insurance coverage altogether.
When a worker gets hurt on the job, they may discover there’s no real workers’ comp policy in place. When wages are misclassified or hidden through questionable “wellness” schemes, workers can end up owing unexpected taxes or losing access to benefits they were promised.
And when these companies disappear — which many do — workers are left holding the bag.
Let’s not pretend this impact is evenly distributed. It’s not.
Black workers are disproportionately represented in the temporary and contingent workforce. That means we are also disproportionately exposed to these risks. Wage theft, lack of insurance, and workplace exploitation aren’t abstract policy issues — they’re real-world harms hitting our communities every day.
At the same time, honest businesses — including minority-owned staffing firms — are being undercut by competitors who cheat. When bad actors can slash costs by ignoring the law, they gain an unfair advantage over those doing things the right way. That’s not just unethical — it’s anti-competitive, and it stifles economic growth in our communities.
This is why legislation like SB 1032, authored by State Senator Eloise Gómez Reyes, matters.
SB 1032 — the Staffing Agency Fair Enforcement Act — is a practical, targeted step toward fixing a broken system. It would require staffing agencies operating in California to register with the state to obtain a license to operate, disclose ownership, and provide proof of valid workers’ compensation coverage. Employers who utilize staffing agencies to obtain workers will be able to check the statewide registry to know who is properly licensed prior to contracting with the staffing agency. It also strengthens enforcement tools to go after repeat offenders and shell companies that try to evade accountability.
These are not radical ideas. In fact, many other states already have similar requirements in place. California, despite being the largest labor market in the country, has lagged behind.
This bill is about transparency. It’s about accountability. And most importantly, it’s about protection — for workers and for the businesses that play by the rules.
For Black workers, the stakes are especially high.
We have fought too hard for economic access to allow that access to be undermined by fraud. Supporting SB 1032 isn’t just good policy — it’s a matter of economic justice.
To policymakers, community leaders, and readers across California: now is the time to act.
We need stronger safeguards. We need smarter enforcement. And we need to stand up for the workers who keep this state running — many of whom look like us.
Because when we protect workers, we protect families. When we support honest businesses, we build stronger communities. And when we demand accountability, we move closer to the kind of economy that works for everyone — not just those willing to game the system.
SB 1032 is a step in that direction. Let’s take it.
Herb Bennett is an Army Veteran and the CEO of Baran Agency, a specialized temporary staffing agency that provides ex-military personnel to provide cybersecurity and other services to Department of Defense contractors as well as the private sector.