Newsom Vetoed Bill Regulating State Telework Policies
Governor Newsom blocked legislation that sought to mandate justifications for in-office work requirements.
Updated on Sept. 19, 2026 in Remote Work
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Governor Gavin Newsom vetoed Assembly Bill 1729 on September 18, 2026, rejecting legislation that would have required state agencies to justify mandatory in-person work. The bill also sought to establish a telework cost-effectiveness dashboard for state operations.
Why it matters
Newsom argued that the bill would limit departmental flexibility by framing telework as a default, maintaining that in-person collaboration remains essential for productivity. This decision upholds the current state mandate requiring four days of in-person work per week.
The Senate Committee on Appropriations estimated AB 1729 would carry $10 million in recurring expenses. This figure is contrasted against $225 million in projected annual savings from current real estate and office consolidation policies.
The players
Gavin Newsom
He is the current Governor of California who has prioritized in-person collaboration for state government operations.
SEIU Local 1000
This union represents approximately 100,000 state employees and is currently involved in ongoing labor contract negotiations.
Department of General Services
This state agency manages the infrastructure and administrative services for California government operations.
The details
The veto follows a period of tension regarding a return-to-office mandate that took effect earlier this year. While the bill passed both legislative chambers with a two-thirds majority, the administration continues to manage telework exemptions on a case-by-case basis.
Timeline
July 1, 2026: A four-day in-person work mandate for state employees took effect.
September 18, 2026: Governor Gavin Newsom officially vetoed Assembly Bill 1729.
Market Landscape
The veto highlights the friction between legislative attempts to formalize remote work protections and executive efforts to maintain centralized office attendance. This move reinforces the current state stance on in-office presence as California continues to balance budget-saving real estate strategies with labor demands.
State employees will continue to follow the existing four-day in-office mandate without the additional oversight measures proposed in the vetoed bill. The decision maintains current reporting expectations for staff as the state moves forward with its office consolidation and real estate cost-saving strategy.
The takeaway
The veto signifies a continued emphasis on physical office presence for state government agencies over the convenience of remote arrangements. Future shifts in these policies depend on whether the legislature moves to challenge the governor's decision in the coming sessions.
Further reading
For more information on state policies, visit the California Remote Work section.
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