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California Governor’s Return-To-Office Mandate May Cost State $225 Million Annually, Audit Finds

The governor’s office disputes the audit’s conclusions, saying the findings are based on estimates and incomplete data, but says it will consider the recommendations as it manages workforce policies.

Allwork.Space News TeambyAllwork.Space News Team
August 13, 2025
in News
Reading Time: 2 mins read
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California Governor’s Return-To-Office Mandate May Cost State $225 Million Annually, Audit Finds

The report shows that Newsom’s directive requiring state workers to be in the office four days a week was issued without fully assessing space needs or costs, potentially leading to $225 million in added expenses each year.

A recent audit allegedly shows that California could save hundreds of millions annually by not enforcing strict return-to-office mandates for state employees (although Governor Gavin Newsom disputes this).

The report shows that Governor Newsom’s directive requiring state workers to be in the office four days a week was issued without fully assessing space needs or costs, potentially leading to $225 million in added expenses each year, according to CBS News.

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The audit, requested by Assemblymember Josh Hoover, challenges the governor’s uniform hybrid work policy. It notes that several departments, having reduced office space during the pandemic, lack sufficient workstations to accommodate employees returning full-time. 

For example, the Department of Health Care Services would need 541 additional desks, while the Department of Resources, Recycling and Recovery requires 123 more.

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Hoover emphasizes that state agencies were initially encouraged to prepare for telework, which contributed to these space shortages and logistical challenges in bringing employees back.

The governor’s office disputes the audit’s conclusions, describing the findings as based on estimates and incomplete data, but indicates it will consider the recommendations as it manages workforce policies.

Meanwhile, state worker unions have opposed the four-day in-office requirement, currently scheduled to begin in July 2026, and the audit has intensified the ongoing debate.

The report urges the state legislature to step in and establish clear guidelines for determining which state jobs should be remote or on-site. Assemblymember Hoover plans to propose related legislation next year.

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Source: CBS News
Tags: Hybrid WorkNorth AmericaWork-life Balance
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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