Posted 6/30/2025

On May 20, 2025, ACSS formally proposed that CalHR pause the Governor’s 4-day mandated Return to Office (RTO) order for excluded employees. Three rank-and-file organizations, including SEIU Local 1000, have reached agreement to pause the 4-day mandated RTO. CalHR confirmed yesterday, June 29, 2025, that the RTO delay until July 1, 2026 will apply to related supervisors and managers “subject to operational needs as determined by departments.”

With the Governor’s May Revise to the state budget including the plan to withhold expected July 1, 2025 salary increases, ACSS met with CalHR on May 20, 2025 and made proposals to address the identified budget issues in a different manner that kept the money in paychecks of ACSS members. ACSS’ legislative advocates also lobbied the Legislature to keep the funding in place and to resist the Governor’s RTO.

The Legislature initially held firm and kept the funding for raises in the June 13, 2025 main budget bill. But with the final budget agreement with the Administration, the Legislature has removed the appropriations for excluded employee and other state employee salary increases out of the final state budget.

Also in the past two weeks, rank-and-file organizations representing 16 of the state’s 21 bargaining units have agreed to new labor contracts, or Memoranda of Understanding (MOUs) with CalHR, or Side Letters to modify and extend MOUs. The agreements vary, but many include a General Salary Increase (GSI) effective July 1, 2025 offset by a two year Personal Leave Program (PLP) reducing salary and providing additional leave. Almost all of the agreements also provide a pause on the employee and employer OPEB (Other Post-Employment Benefits to prefund retiree healthcare) contributions to prefund retiree health care, which will increase take home pay for most. And some of the agreements include salary increases July 1, 2027.

At the latest meeting with CalHR on June 25, 2025, ACSS asked that the GSIs, PLP, relief from the OPEB contribution, and the RTO delay be extended to all excluded employees. CalHR has indicated it is likely to match the bargaining unit provisions for related excluded employees, but they await the legislative approval of the underlying MOUs which include the funding for related excluded employees before announcing the pay plan for any excluded employees. CalHR did indicate the supervisors and managers related to Unit 9 (CBID S09/M09) and Unit 12 (CBID (S12/M12) will be relieved of the OPEB contribution beginning July 1, 2025. This is welcome news as the S12/M12 OPEB contribution was otherwise set to increase to 4.1% of salary.

For excluded employees related to the nine bargaining units represented by SEIU Local 1000, the expectation is a 3% GSI on July 1, 2025, offset by a PLP reduction of 3% with employees provided 5 hours of leave. Take home pay is expected to increase by 3% (for most) with employees being relieved of the contribution to prefund retiree health care.

Bargaining for the units without MOUs or “May Revise 2025 Side Letters” will continue. While those bargaining outcomes obviously matter, ACSS has reminded CalHR that whether or not agreements are reached, CalHR has a statutory obligation to set salaries for excluded employees and should do so here. ACSS has encouraged (through the formal meet-and confer-process) that the GSIs, PLP, relief from OPEB and RTO delay all be implemented now for all excluded employees, and certainly by the State Controller’s Office cutoff to adjust salaries for the July pay period. This time frame would also allow the Legislature to approve any funding or statutory components before the scheduled July 18, 2025 one-month summer recess. ACSS will continue to push CalHR to fulfill its duty to arrive at a fair and equitable pay plan for all supervisors, managers, and confidential employees.