Beginning this month, thousands of California state employees are returning to the office under a new statewide policy requiring four in-office workdays as the default for agencies. The return-to-office mandate, which took effect July 1, is expected to affect roughly 109,000 state employees who had previously been working under two-day hybrid schedules. Governor Gavin Newsom's administration who has championed this policy, said it is intended to strengthen collaboration, accountability, and innovation across state government.
The return-to-office mandate has generated significant protest and discussion among employee organizations and workplace experts. In May, Service Employees International Union Local 1000 filed an Unfair Labor Practice charge with the Public Employment Relations Board challenging the implementation of the mandate. While PERB has issued a formal complaint allowing the case to proceed, the legal challenge will not delay implementation, and affected employees are expected to comply with the new schedule while the matter is pending.
Questions have also emerged about whether Sacramento’s existing office infrastructure is prepared to support a larger in-person workforce. A 2025 report from the California State Auditor found the administration had not collected sufficient data on workplace performance, service delivery, office space needs, or costs before expanding in-office requirements. The report also concluded the state could potentially save as much as $225 million annually by maintaining a two-day hybrid model and reducing its office footprint by approximately 30 percent, highlighting the financial considerations surrounding long-term workplace planning.
The return to office mandate may also have implications for the Workers' Compensation Appeals Board as state offices across California adjust to increased in person staffing. While the mandate does not alter the Board's current use of CourtCall and other remote proceedings, CAAA will be watching closely to see whether a greater in office presence influences future decisions regarding conference calendars, hearing procedures, or the balance between remote and in person appearances. Any changes in those practices will have a direct impact on the day-to-day administration of California's workers' compensation system.
