Commentary: California’s Return-to-Office Mandate

If you gathered a room full of public-sector executives and asked them about their top priority, chances are their answer would be the same: the workforce. Our benchmark surveys consistently highlight workforce challenges as a top concern — and when you dig deeper into issues like cybersecurity or artificial intelligence, workforce dynamics often emerge as the critical factor driving success or failure.

This makes Gov. Gavin Newsom’s recent return-to-office (RTO) directive particularly significant. While the mandate is intended to improve collaboration, innovation and accountability, some are questioning how this aligns with the broader goal of building a more modern and competitive public-sector workforce.

THE RTO DEBATE: PRODUCTIVITY VS. PRESENCE

Over the past few years, many leaders across California’s public sector — both in line-of-business roles and IT — have reported that remote work resulted in a more productive and engaged workforce. Despite these positive outcomes, California’s government saw substantial innovation during this period, leaving many state employees asking: "Why now?"

One factor driving the mandate is the state’s effort to revitalize downtown economies by increasing foot traffic in areas where government offices are located. While this could help local businesses, it raises questions about unintended consequences. Will this shift result in employee demands for higher wages or benefits to offset commuting costs? Will agencies need to reinvest in office infrastructure after years of downsizing or reconfiguring their spaces to support remote work?

ALIGNING WITH BROADER WORKFORCE TRENDS

The governor’s directive mirrors similar trends in both the federal government and private sector, where employers are increasingly requiring staff to return to the office. The directive also references workforce shifts in the federal government, suggesting that former federal employees may now look to California’s state workforce for new opportunities.

However, whether a return-to-office mandate will serve as a compelling recruitment tool remains uncertain. While some federal employees may pursue roles in state government, it’s unclear whether in-person work requirements will help or hinder those efforts.

SOME FLEXIBILITY

The California Department of Human Resources’ recent guidance provides departments and agencies with flexibility to continue to telework. While the RTO mandates a minimum of four in-person days to enhance collaboration and operational efficiency, this guidance allows departments to evaluate exceptions based on specific circumstances. Departments are encouraged to assess employee requests for additional telework days individually, considering factors such as:

• Reasonable Accommodations: Requests related to the Fair Employment and Housing Act (FEHA), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), or the California Family Rights Act (CFRA) should be processed following established procedures.​ 
• Job Duties Requiring Telework: Employees whose roles necessitate working from alternate locations, such as telehealth providers, investigators or inspectors, may be exempt from the four-day in-person requirement.​
• Pre-existing Telework Arrangements: Employees residing 50 or more miles from their designated headquarters, with telework agreements established before March 3, 2025, may continue their existing arrangements if deemed consistent with operational needs.​

So, time will tell what the impact will be to the state workforce currently and in the future. While there may be exceptions, it is clear that the governor wants state employees back in the building. With people returning to the office this summer, what might this mean to industry?

WHAT DOES THIS MEAN FOR INDUSTRY?

For businesses serving California’s public sector, the RTO directive presents several potential opportunities:

• Office Infrastructure and Technology: Vendors providing office space, furniture, IT equipment and facility management solutions may see increased demand as agencies prepare to accommodate a greater in-office presence.
• Workforce Enablement Tools: Solutions that support hybrid collaboration, streamline workflows or improve employee engagement could become increasingly valuable as agencies strive to balance flexibility with in-office mandates.
• Transportation and Mobility Solutions: As commuting patterns shift, there may be new opportunities for public transit partnerships, shuttle services and parking management providers.

California’s workforce priorities remain front and center — and the success of this RTO transition may hinge on how effectively state agencies can align their operational needs with the evolving expectations of employees. For industry partners, this shift presents both challenges and opportunities to support a modern, resilient public-sector workforce.

Have insights or comments about the return-to-office order? Let us know at bmiller@erepublic.com.

Joe Morris is chief innovation officer of e.Republic, the parent company of Industry Insider — California.