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Industry guide · NAICS 561 · Updated September 2026

Retirement plans for staffing agencies

A staffing agency's payroll is everyone else's workforce — hundreds of W-2 temps on assignment, constant churn, thin markups — and for CalSavers purposes, every one of them is yours.

The short answer

For CalSavers, the employer of record is the employer — and a staffing agency is the employer of record for its temporary and assignment workers, not the client sites where they work. That means your eligible headcount is the full field payroll, often ten or twenty times the internal staff, and the mandate has applied to you at every deadline that has now passed. Churn does not excuse the roster: workers must be added within 30 days of hire. Agencies weighing a 401(k) instead face the industry's hardest eligibility questions — including the long-term part-time rules, which now sweep in field employees with two consecutive 500-hour years — so plan design here is genuinely an engineering problem, and it is solvable.

Why this industry is different

The mandate treats every employer alike. The payroll realities underneath don't cooperate:

  • The field payroll is enormous and never stops moving. Hundreds of W-2 assignment workers starting and ending weekly means the CalSavers roster — or a plan's eligibility tracking — is a live data feed, not an annual chore.
  • Thin markups leave no room for benefit costs. Light-industrial staffing margins are set by competitive bid; an employer contribution across the whole field population is arithmetic that doesn't close, which is why design has to distinguish the populations honestly and lawfully.
  • The long-term part-time rules bite hardest here. Federal law now requires 401(k) deferral eligibility for employees with consecutive 500-hour years — a threshold a steady temp crosses easily — so the old assumption that field staff simply never enter the plan no longer holds.
  • Joint-employer anxiety freezes decisions. Owners worried about co-employment exposure with client sites hesitate to touch anything benefits-shaped; meanwhile the CalSavers notices keep coming, addressed correctly, to the agency.
  • Big W-2 counts trigger big-plan obligations by surprise. An agency that sponsors a plan and lets eligibility drift can cross audit and testing thresholds it never budgeted for.
11,127
staffing agencies establishments in Los Angeles County alone.
Source: Census County Business Patterns 2022, NAICS 561
$30,000
first-cycle penalty exposure for a typical 40-person shop that ignores its notices — then $20,000 a year.
Source: Cal. Gov. Code § 100033(b)

What actually works

Staffing is where plan design is closest to engineering. The internal staff and the field staff are different populations with different economics, and a well-built plan treats them that way within what the law allows: eligibility service requirements measured in hours, entry dates that don't create mid-assignment enrollments, and careful tracking for the long-term part-time rules — because a temp with two consecutive 500-hour years now has a statutory right to defer, whatever the plan's ordinary eligibility says. Coverage testing has to be modeled before the design is adopted, not discovered at year-end; excluding the field population by classification is possible in some structures and fatal in others.

For many agencies the stable answer is a hybrid: CalSavers as the compliant vehicle for the high-churn field payroll is not an option once you sponsor a plan — the mandate is employer-level, not employee-level — so the real choice is between CalSavers for the whole roster, or one plan engineered to hold both populations. Which side of that line an agency should stand on depends on markup, tenure mix and the owners' own savings goals, and it's precisely the kind of question a fee-only fiduciary should walk through with you before any document gets signed.

The SECURE 2.0 credits frequently cover most of the first three years' administration for employers under 50 staff — the formula, worked honestly — and if after the arithmetic CalSavers is still the right answer for your shop, we'll say so: the full comparison · run your own numbers.

By county

This guide is statewide. The county pages go local — where the industry physically clusters, which cities it sits in, and the municipal rules that stack on top of the state mandate.

Where this industry clusters near us

Staffing Agencies questions

Are my temps MY employees for CalSavers, or the client's?
Yours. CalSavers follows the employer of record — the entity whose EIN is on the W-2 — and for temporary and assignment workers that's the agency. The client site's own CalSavers status is irrelevant to your obligation. Your eligible headcount is your full W-2 payroll, field and internal alike, and each new hire must be added to the roster within 30 days.
Our field staff turn over constantly. Do we really have to enroll people who'll be gone in six weeks?
Yes — CalSavers has no waiting period, so a six-week assignment worker goes on the roster like anyone else, and comes off when they leave. The account is the worker's own IRA and follows them between employers, which is exactly the design intent for high-churn industries. The administrative answer is automation: a payroll integration that feeds the roster beats any manual process at staffing-industry volume.
What are the long-term part-time rules and why do they matter to us?
Federal law (SECURE Act as expanded by SECURE 2.0) requires 401(k) plans to let employees with two consecutive years of 500-plus hours make deferrals, even if plan eligibility would otherwise exclude them. A steady temp working 12 hours a week crosses 500 hours in a year — so agencies sponsoring a 401(k) can no longer assume the field population stays outside it. The rules affect deferral rights more than employer-money rights, but the tracking obligation is real and it is yours.
Would sponsoring a plan increase our joint-employer exposure with clients?
Joint-employer status is a legal question for your employment counsel, and we won't pretend otherwise. What we can say: sponsoring a plan for your own W-2 employees is an act of the employer of record, which you already are, on payroll you already run. The plan neither creates nor cures co-employment facts at the client site — those turn on control and supervision questions that live entirely outside the plan document.
Educational information, not legal or tax advice. Establishment counts are from Census County Business Patterns (most recent published by-industry figures). Confirm your CalSavers obligations at (855) 650-6916 and with your CPA; consult ERISA counsel on plan design. Aduna Capital LLC is not affiliated with CalSavers, is registered as an investment adviser in California, and works from its principal office in Norwalk.

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