The union's contract expired on June 30, and negotiations with Governor Gavin Newsom's administration are ongoing. SEIU Local 1000 argues that the state has the financial capacity for better compensation, pointing to a significant increase in general fund spending over the past two years.

The union has also filed a complaint alleging bad faith bargaining by the state's labor negotiations agency, CalHR. The Public Employment Relations Board sided with the union in late September, concluding that CalHR had "refused to meet and confer in good faith."

CalHR has stated that the state remains open to negotiation and is prepared to enter mediation. A strike would be unprecedented for SEIU Local 1000 in its 44-year history. The union represents a diverse range of state workers, including nurses, IT staff, and custodians.

Past agreements have faced disruptions, such as a state budget crisis that led to the withholding of a promised raise in 2025 and temporary pay reductions. If a strike occurs, Californians could experience delays in services at agencies like the DMV and unemployment offices.