California Grapples With Staffing Agency Fraud Amid Oversight Gaps

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Staffing agencies provide job and career opportunities to more than 10 million Americans, including more than 1.7 million in California. While the state has the nation’s largest temporary employment market, experts said staffing agency fraud is rampant due to a lack of oversight.
Many employees are unable to access workers’ compensation due to these fraudulent practices, and taxpayers ultimately bear these medical costs, the experts noted.
According to the California Department of Insurance, authorities identified 2,932 suspected workers’ compensation fraud cases in the 2023–24 fiscal year in the state, resulting in 128 arrests and potential fraud losses of about $157 million.
Legitimate Firms Undercut
Siyamak Khorrami, host of The Epoch Times’ “California Insider,” recently spoke with employment and legal experts in the state to explore the issue….

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