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California Suspends State Employee Return-to-Office Mandate Until 2026

The pact eases state budget pressures with a 3% pay raise, bonus leave time, delayed office return.

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Overview

  • The state and SEIU Local 1000 agreed to suspend the four-day-a-week office requirement until July 1, 2026.
  • The deal covers about 100,000 state employees represented by SEIU Local 1000, originally set to resume full in-office schedules on July 1, 2025.
  • The agreement preserves a previously negotiated 3% salary increase for state workers and keeps its terms in effect through June 30, 2027.
  • Additional concessions include suspended retiree health care costs, extra personal leave, and expanded vacation and annual leave benefits.
  • Business owners in downtown Sacramento warn that the delay in employee returns could curb foot traffic and revenue.