California is another step closer to adopting reforms meant to protect vulnerable workers from big medical bills if they are hurt on the job.

The SAFE Act, a key measure which has cleared the state Senate, would require staffing agencies to register with the state and prove they have workers’ compensation coverage. In January, a judge ordered Man Staffing in Oxnard to pay $650,000 for failing to provide workers’ compensation.

Andrew Reid, senior deputy district attorney in Ventura County, who investigated the case, said California needs tougher enforcement.

“There needs to be greater penalties associated with operating without workers' compensation insurance," Reid contended. "And not just with workers' compensation insurance that doesn't adequately cover them, but with those that are just operating without it, period.”

The bill would also require staffing agencies to disclose their finances. Under the plan, the state would have the power to issue stop-work actions against uninsured operators. The American Staffing Association opposes the measure, calling it unnecessary and saying the new registration fee could be costly.

Reid acknowledged such fraud can be hard to track down and prosecute. The SAFE Act aims to deter bad actors from setting up fly-by-night staffing operations in the first place.

“We are keeping track of that, and we're trying to identify it because we don't want to see workers who are harmed and denied the benefits that they're entitled to under California law,” Reid explained.

The bill now goes to the state Assembly for consideration. Supporters said it would also level the playing field for staffing agencies complying with the law.

Source: Public News Service