California Governor Gavin Newsom's tenure has been marked by numerous legislative actions and contract negotiations that have significantly benefited labor unions, according to critics. While Newsom recently mandated state workers return to the office four days a week, a move perceived by some as a stance against public employee unions, a broader examination of his record reveals a consistent pattern of support for organized labor.
Early in his term, Newsom signed Assembly Bills 1505 and 1507, which strengthened traditional school districts' authority over charter schools. The California Teachers Association (CTA) hailed these as a significant victory. During the COVID-19 pandemic, California's public schools remained closed for an extended period as teachers' unions negotiated terms for reopening. The state was among the last to fully resume in-person instruction.
Furthermore, California opted out of the federal Education Freedom Tax Credit, a decision supported by the CTA, which opposes diverting scholarship funds to alternatives to unionized public schools. The state has until July 1 of the following year to opt into the program.
In 2023, Newsom negotiated contracts for the majority of California's public workforce, with an estimated cost to taxpayers of nearly $5 billion over three years. This included 3% general raises for approximately 100,000 SEIU Local 1000 employees in 2023, 2024, and 2025, along with additional benefits. When budget challenges arose in 2025, SEIU members agreed to a temporary payroll reduction in exchange for extra leave, while the governor suspended their retiree health insurance contributions and delayed his return-to-office mandate until July 1 of the current year.
The Public Employee Health Protection Act, also signed by Newsom, mandates that government employers continue health insurance coverage for striking public employees and their families. This means taxpayers continue to fund health benefits even when employees are on strike.
Newsom's administration has also been credited with expanding the influence of organized labor. He granted collective-bargaining rights to roughly 40,000 family child-care providers, supported farmworker organizing efforts, and facilitated a pathway for over 800,000 California rideshare drivers to organize and engage in collective bargaining. The establishment of the California Gig Workers Union was a notable outcome of these efforts.
Critics also point to the signing of Assembly Bill 5 in 2019, which aimed to reclassify many independent contractors as employees. Despite immediate backlash and subsequent exemptions and the passage of Proposition 22, the law aligned with labor unions' preference for traditional employer-employee relationships.
Major priorities for the SEIU have also been enacted, including a $20 per hour minimum wage for fast-food workers and a future goal of $25 per hour for healthcare workers.
The California Labor Federation has rated Newsom favorably on its legislative priorities, giving him an 88% rating in 2022 and celebrating a "banner year" in 2025 after he signed most of their key bills.
These developments occur amidst California's ongoing affordability crisis. Critics argue that increased government contracts and expanded public employee benefits ultimately place a greater burden on taxpayers, who are already facing high gas prices, rising home insurance costs, and a high cost of living that is driving residents out of the state. Similarly, increased mandated labor costs in the private sector are passed on to consumers through higher prices for goods and services.
The critique suggests that a single policy, such as the return-to-office mandate, does not negate the cumulative effect of years of pro-labor legislation and agreements that critics argue have contributed to the state's financial challenges.