California Workforce Bills Await Governor's Decision

California's 2025 legislative session has concluded, and several bills with major implications for work and workplaces now sit on Gov. Gavin Newsom's desk. By Oct. 13, the governor must either sign or veto these measures — or they will automatically become law. SHRM has been actively engaged throughout the session, urging action that strengthens the workforce pipeline and ensures practical regulation.

SHRM has called for Newsom's signature on Assembly Bill 338, which directs workforce funds to support rebuilding efforts in Los Angeles and Ventura counties following this year's wildfires, creating pathways for unemployed and underemployed individuals to quickly re-enter the workforce. SHRM also supports Assembly Bill 1098 and Senate Bill 638, which would better align education and employment systems while modernizing career and technical education programs. In addition, SHRM endorsed Senate Bill 75, which expands pre-apprenticeship training for incarcerated individuals nearing release, helping them gain skills and reducing recidivism.

At the same time, SHRM has urged a veto of Senate Bill 7, which would regulate automated decision systems in employment. While SHRM supports thoughtful AI oversight, it believes this measure's broad definitions and burdensome requirements would stifle innovation, heighten compliance costs, and expose employers to litigation risk without delivering clear benefits to workers. SHRM continues to call for a more measured approach that balances innovation with worker protections.

As the Oct. 13 deadline approaches, SHRM is emphasizing that California's workforce future depends on policies that close skills gaps, expand opportunity, and ensure workplace innovation can thrive. Newsom's decisions will set the tone for how the state addresses its most pressing workforce challenges in the years ahead.

SHRM and its members will continue to be a trusted partner for policymakers — supporting solutions that empower workers, strengthen workplaces, and advance California’s long-term competitiveness.