The State Worker

Insurance Commissioner deviated from Gavin Newsom on telework policy

California Insurance Commissioner Ricardo Lara announces actions aimed at improving insurance choices and addressing the long-term sustainability of the state insurance market during a press conference at the state Capitol on Thursday, Sept. 21, 2023.
California Insurance Commissioner Ricardo Lara announces actions aimed at improving insurance choices and addressing the long-term sustainability of the state insurance market during a press conference at the state Capitol on Thursday, Sept. 21, 2023. hamezcua@sacbee.com

Striking a different tone on telework, Insurance Commissioner Ricardo Lara praised his employees’ ability to perform public services remotely when he announced the Department of Insurance would maintain its current hybrid work model, instead of following the governor’s return-to-office order.

As an elected official, Lara has the authority to establish policies, including those that govern telework, separately from Gov. Gavin Newsom.

When Newsom informed state workers they would be back in offices four days a week starting in July, he cited the need for more collaboration and mentorship among public employees. The Governor’s Office has said that studies show in-person working environments benefit employees but declined to share examples.

After the governor issued his executive order last month, Lara asked staff to evaluate the department’s current hybrid work policy. The findings did not surprise the commissioner.

“The facts are compelling,” Lara wrote in an email to DOI employees Monday. “Whether working in the office, in the field, or remotely, all of you have risen to the occasion as we navigate a global pandemic, catastrophic disasters, major market fluctuations, and an insurance crisis.”


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Lara used the message to employees to highlight several recent successes as evidence that remote work has not interrupted the department’s effort to protect consumers and their access to an affordable insurance market. One of those achievements included the “largest insurance market reform in 30 years,” known as the Sustainable Insurance Strategy, which the commissioner said the department completed in record time.

While Lara celebrated his department’s achievements completed while some employees worked remotely, Newsom said his plan is to bring public employees back to the state buildings, in part, to build trust with the public.

When asked about the return-to-office order last week, Newsom maintained his stance that it was important for state workers to return to offices to improve output and productivity.

“We’re public servants,” Newsom said during an event last Wednesday, “and I think it’s important to show up for each other, for ourselves, connect with folks.”

The Department of Insurance has more than 1,200 employees, nearly 80% of which are eligible to work remotely, according to December telework data from the Department of General Services.

Last month, a spokesperson for the Insurance Department said that telework eligibility is based on employees’ classification and responsibilities. In December, 43% of all Insurance Department employees worked from state offices at least two days a week, according to DGS data.

Lara, a Democrat, began his first term as the insurance commissioner in 2019. His second term ends in January 2027.

This story was originally published April 8, 2025 at 4:31 PM.

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William Melhado
The Sacramento Bee
William Melhado is the State Worker reporter for The Sacramento Bee’s Capitol Bureau. Previously, he reported from Texas and New Mexico. Before that, he taught high school chemistry in New York and Tanzania.
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