With contradictory messaging from the Governor, we can only speculate on the reasoning behind the Return to Office (RTO) Executive Order. We have pieced together potential motivations for the Governor’s decision, highlighting campaign contributions and detailing the roles of key influencers.

History of RTO

In March 2020, Governor Gavin Newsom issued Executive Order N-33-20, proclaiming a State of Emergency and ordering all individuals living in the state to stay home due to COVID-19. State workers were deemed “Essential Critical Infrastructure Workers” on a case-by-case basis – those who ‘supply’ or ‘support’ critical infrastructure sectors. Although the Department of General Services (DGS) had a Statewide Telework Policy, it was not widely adopted pre-COVID. Under this policy, state workers received equipment to work safely from home. Telework led to a 20% reduction in leased office space, saving an estimated $84.7 million annually. During the pandemic, state workers kept California running remotely.

In 2021, the Newsom administration informed department directors that 75% of state workers eligible for telework should continue working from home. “The administration wants to continue to reap telework’s benefits for the employees and for the state,” said former Government Operations Agency Secretary Yolanda Richardson in a 2021 video address to state managers, “by making sure we encourage as much telework as possible while still meeting our mission to serve Californians.”

In November 2022, the Governor’s Office released the world’s first plan to achieve zero carbon pollution – California’s Climate Plan. At that time, it seemed telework was here to stay. State employees experienced improvements in work efficiency and work-life balance, while communities noted significant improvements in air quality. (California Department of General Services, February 15, 2024. State Hybrid Workforce Dashboard: Benefits of Telework. Note: DGS sunsetted the dashboard on March 29, 2024, and the data is no longer available on the California Open Data Portal.) Some workers relocated to areas with more affordable housing as a result.

However, not everyone supported the change. Despite benefits to workers, communities, the state budget, and the environment, pressure from business constituents pushed for reopening offices. In January 2024, CalEPA became the first agency to announce a hybrid policy requiring two in-office days per week, citing “continued benefits of remote work” while also aiming to “foster collaboration, strengthen teams, enhance communication, and maintain work-life balance.” By Spring 2024, most departments had adopted similar hybrid models.

Employees living beyond a 50-mile radius from their assigned office were allowed reasonable accommodations and flexibility in meeting the order. Individual circumstances were taken into account. Still, some workers felt compelled to resign due to health concerns, prioritizing their well-being over the risk of illness. Many who were unhappy with returning to the office – especially after experiencing the positive impacts of telework – chose to bring meals from home to reduce spending during office days.

Assemblymember Josh Hoover (R-Folsom) raised concerns about the new hybrid model, particularly given the demonstrated benefits of telework. In a letter dated April 29, 2024, he requested an audit of the Department of General Services (DGS) and the California Department of Human Resources (CalHR) regarding the state’s telework policies: Audit 2024-118 (Asm. Hoover) – Telework. However, before the audit’s scheduled release in Summer 2025, Governor Newsom issued Executive Order N-22-25, mandating a hybrid telework policy for all state agencies and departments under his authority. The order requires a minimum of four in-person workdays per week, effective July 1, 2025.

Executive Order N-22-25 was a key agenda item at the Assembly Budget Subcommittee No. 5 Hearing on April 22, 2025. During the session, Chair and Assemblymember Sharon Quirk-Silva (D-District 67) opened the floor for public comment following the discussion of the order.

State workers from multiple departments and unions voiced strong concerns. Many testified that the executive order could drive up the state budget while federal funding for essential programs is being reduced. Others warned it could undermine California’s progress toward its climate goals. Several speakers also shared personal stories, emphasizing the hardships the order may impose on workers and their communities.

In response, state workers have launched this website (https://notorto.org) to inform the public, provide resources, and encourage collective action. The site offers information on how the order affects Californians and outlines ways to get involved and spread awareness.

Starting in May 2025, billboards ads purchased by state workers will appear across California. These ads aim to raise public awareness with a blunt message: California Governor Gavin Newsom is to blame.

Who Benefits from RTO

We believe the RTO policy may primarily benefit commercial real estate and transportation interests. Below is a list of key individuals and connections that may be influencing the RTO decision:

Lieutenant Governor Eleni Kounalakis

She earns millions of dollars annually from extensive property investments around the Sacramento region and beyond. Kounalakis is the daughter of the powerful Sacramento real estate developer Angelo Tsakopolous and worked for AKT Development Corporation, the company he founded, for nearly two decades. In 2010, she was appointed Ambassador to Hungary by President Barack Obama. Her husband, Markos Kounalakis, a foreign affairs scholar and writer, is now a director of AKT Development Corporation and the affiliated AKT Investments, Inc.
See who funded her campaign: Cal-Access KOUNALAKIS FOR LIEUTENANT GOVERNOR 2022; RE-ELECT ELENI – Election Cycle 2021-22

Senator Angelique Ashby

She has not responded to our inquiries and requests for assistance in urging Governor Newsom to rescind Executive Order N-22-25. Our research shows that she received over $60,500 in contributions from real estate developers during the 2022 – 2023 state fiscal year, including more than $21,000 from the Lt. Governor’s family:

Senator Ashby also introduced a bill, SB-516 California Capital City Downtown Revitalization Act.(2025-2026):
This bill, the California Capital City Downtown Revitalization Act, would authorize the City or County of Sacramento to create an enhanced infrastructure financing district within the downtown Sacramento geographic area. The bill would authorize an affected taxing entity located entirely, or in part, in the County of Sacramento to opt in to the district, and would authorize the district to accept state funds.

California Road Charge

Road Charge is an alternative funding mechanism that allows drivers to support road and highway maintenance based on how many miles they drive, instead of how many gallons of gas they use. Just like you pay your gas and electric bills based on how much of these utilities you use, a road charge – also called a mileage-based user fee – is a fair and sustainable way to fund road maintenance, preservation, and improvements for all Californians. Instead of paying the state’s gas tax, which disproportionately impacts those who cannot afford more fuel-efficient vehicles, everyone would pay a per-mile fee for how much they use the road, regardless of what kind of car they drive.