The State Worker

Thousands of state workers rally outside Capitol to protest contract standoff and RTO

Samantha Toedter, left, and Kiley Janee Braud, right, join state workers protesting Gov. Gavin Newsom’s return-to-office order during a rally organized by SEIU Local 1000 at the California Capitol in Sacramento on Wednesday, July 1, 2026.
Samantha Toedter, left, and Kiley Janee Braud, right, join state workers protesting Gov. Gavin Newsom’s return-to-office order during a rally organized by SEIU Local 1000 at the California Capitol in Sacramento on Wednesday, July 1, 2026. rbyer@sacbee.com

SEIU Local 1000 leaders and the union’s employees, which number nearly 100,000, are not happy.

The fight to protect telework for California state workers was unsuccessful as of Wednesday — the first day of Gov. Gavin Newsom’s return-to-office order — and the union’s effort to secure raises for its workers at the bargaining table had yet to pay off before its contract expired on Tuesday.

The Newsom administration rejected SEIU Local 1000’s pay and health benefit proposals, according to the union, which came as a sting given California’s improved budget position in 2026. Last year’s deficit required state worker unions to hammer out new deals with the governor to cut down on California’s payroll costs, which ultimately resulted in deals that do not include general salary increases this summer.

To voice their collective frustration over the stalled contract negotiations and the imposed return-to-office order, over 2,500 union employees and other state workers descended on the Capitol Wednesday for a rally.

“They rejected our teleworks proposal. They rejected mandatory overtime. No pay raises,” SEIU Local 1000 President Anica Walls told the crowd. “And they thought that we would be happy because they wanted to honor the 3% that we already negotiated. Is that enough? That is absolutely not good enough.”

Walls and other state workers union leaders who spoke Wednesday said both the return-to-office order and the fruitless negotiations indicate that Newsom is not prioritizing state workers, despite California’s strong budget position.

“The state is essentially offering zero,” Walls said in an interview.

After the large crowd gathered on the Capitol’s West steps to take some photographs, a smaller contingency of a couple of hundred people filed into the statehouse to carry on the rally.

State workers fill the California Capitol rotunda in Sacramento after moving their protest inside during a rally organized by SEIU Local 1000 against Gov. Gavin Newsom's return-to-office policy on Wednesday.
State workers fill the California Capitol rotunda in Sacramento after moving their protest inside during a rally organized by SEIU Local 1000 against Gov. Gavin Newsom's return-to-office policy on Wednesday. RENÉE C. BYER rbyer@sacbee.com

Chants of “Hell no RTO,” and “Gavin Newsom, you can’t hide. We can see your greedy side,” echoed in the rotunda. Several SEIU Local 1000 and other union leaders held up a banner that read, “CalHR: The money’s there, bargain fair.”

Though loud, the demonstration inside the Capitol was not as rowdy as a similar protest organized by SEIU Local 1000 three years ago. At that demonstration, which was related to the union’s last contract fight, eight people were arrested inside the Capitol Annex Swing Space, including Lorena Gonzalez Fletcher, a former lawmaker who leads the California Labor Federation, and Sacramento Councilmember Caity Maple.

This year there were no arrests but California Highway Patrol officers did confiscate a banner from someone before they were able to unfurl it inside the Capitol.

‘No’ isn’t a negotiation

Over the last year, SEIU Local 1000 and other state worker unions have fought to resist the governor’s return-to-office order. Through legal challenges, proposed legislation and numerous rallies, state workers’ labor groups have argued that telework benefits the state financially, protects California’s environment and vastly improves employees’ work-life balance.

Last year Newsom delayed the return-to-office mandate one year in exchange for unions agreeing to help cut down on the state’s employee compensation costs. But more recently, Newsom has remained unwavering in his desire to see the state’s workforce back in offices four days a week.

The curbing of telework comes as a blow to SEIU Local 1000, the only state worker union bargaining a new contract with the Newsom administration this year. While telework was a priority for the union, the majority of its represented employees are not eligible to work remotely and thus the fight for pay increases was a major priority for the massive labor group.

“The cost of living has gone up, but we’re still standing still,” said Nancy Curtis, who works for the California Department of Corrections and Rehabilitation and is not eligible to telework.

SEIU Local 1000’s bargaining team set out to get their members a 20% general salary increase spread across the three years of the next contract. But so far, the state has only agreed to the 3% salary increase in 2027 that both parties had already established last year.

Negotiations will continue until both parties come to an agreement. Until then, SEIU Local 1000’s current contract will remain in effect.

Russ Kinne, a state worker with the California Natural Resource Agency who recently became a dues-paying member of SEIU Local 1000, said it was ridiculous for the state to come to bargaining discussions without any sort of proposal.

“‘No’ isn’t a negotiation,” Kinne said.

Workers from far and wide

Some state workers travelled from across the state to attend Wednesday’s demonstration. Kassandra Shamsrouf, a health program auditor, caught an overnight bus up from Ontario to support her fellow union members. She was catching another bus home immediately after the protest – just in time for work tomorrow.

The long journey was worth it, Shamsrouf said. “The union is important, and our contract is important.”

The union provided transportation to the rally from worker hubs around the state, including Norwalk, Fresno, and Oakland.

Jim Hance, an associate right of way agent in acquisitions at Caltrans, came in from Petaluma. He loves his job at Caltrans, he said. But the cost of travelling to his Oakland office each day would really add up.

“It would double my gas expenses from $70 a month to $140,” he said. “And my toll cost would go up to $145.”

Lawmakers disappointed with stubborn Newsom

Though the legislative session was in full swing, several lawmakers stopped by Wednesday’s rally in support of state workers. California legislators have taken a particularly active role in the fight over telework for state employees this year. Assemblymember Alex Lee, D-San Jose, introduced a bill that would have required state agencies to provide employees with justification when they have to work in person.

Speaking at the rally rally, Lee said it’s annoying how Newsom has stubbornly opposed negotiating over telework with his employees. He believed the governor was making a severe mistake imposing his return-to-office order.

Assemblymember Josh Hoover, R-Folsom, whose constituency includes a large number of state employees, said he was disappointed that the governor hasn’t come to the bargaining table to negotiate telework with unions.

“We want to embrace telework where it makes sense, save money for taxpayers, reduce congestion on our roadways,” Hoover said. “We’re not asking for everyone to be remote.”

Lee hopes that after Newsom sees how disruptive the transition back to offices is in the next two months, the governor will reverse course and sign his legislation — if the bill makes it to the governor’s desk.

Hoover was less optimistic about Newsom signing Lee’s bill. But he said the debate over state workers’ teleworking privileges is far from over.

“This conversation will continue into 2027,” he said.

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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.
Haley Parsley
The Sacramento Bee
Haley Parsley is a summer reporting intern for The Sacramento Bee’s Capitol Bureau. She holds a master’s degree in journalism from the University of Maryland, where she was a fellow at the Howard Center for Investigative Journalism. While there, she reported on immigration policy in the state. She has previously reported in Oklahoma City.
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