California agency reverses on telework policy after workers raise union contract concerns

William Melhado, The Sacramento Bee on Jul 27, 2025

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The California Public Utilities Commission announced Friday afternoon that the agency would pause a September return-to-office order for employees until next year.

Earlier this month, the agency told employees represented by SEIU Local 1000 and other labor groups that they would be expected to work in person two days a week starting in September.

Employees represented by SEIU Local 1000 alleged the telework policy change violated agreements that the state signed last month delaying Gov. Gavin Newsom’s four-day return-to-office order in exchange for helping California save on payroll expenses.

Prior to the agency’s reversal, the Bee reported that requiring state workers to return to offices in September may have run afoul of a 90-day pause to remote work policies outlined in the side letter between California and CPUC employees.

Shortly after that report, CPUC Executive Director Rachel Peterson emailed staff informing them that all union-represented employees with the agency could continue working remotely full time until Jan. 2, 2026. CPUC denied that the change was a result of The Bee’s earlier story.

Terrie Prosper, CPUC spokesperson, said in a statement Friday afternoon that the agency sought advice from CalHR, the state’s chief labor negotiator, over a 90-day pause to telework policy changes that was included in unions’ side letters.

Prosper said that guidance was provided to CPUC on Thursday, which is why the agency updated staff Friday.

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