Labor Committee - Special Hearing Newsletter

Greetings Neighbor,

Thanks for your interest in staying informed and engaged by reading our latest newsletter. This issue focuses on our recent Labor Committee hearing that examined how federal policy shifts are impacting California’s workers and employers, and how our state must respond to protect working families.

During the hearing, we heard from workers, labor advocates and policy experts about the real challenges they are facing — from changes in workplace protections and wages, to the pressures employers experience in adapting to new federal regulations. These conversations made it clear that while our economy continues to evolve, our commitment to safeguarding workers must remain firm.

California has long led the way in advancing strong labor standards, and it’s our responsibility to ensure that federal actions don’t erode the protections that working families depend on. At the same time, we recognize the importance of supporting employers that are striving to create good paying, stable jobs in our communities.

The voices of our constituents are essential to shaping policies that reflect the needs and values of our communities. Please visit our website to learn how to reach our District or Capitol teams to learn more about our policies and legislation as well as how to request state services or other helpful information. 

Warm Regards, 

Lola Smallwood-Cuevas
Senator, 28th District

The State Senate Labor, Public Employment and Retirement Committee convened a special hearing this month to help the state take proactive steps to ensure that critical revenues are generated to offset the harmful impacts of the current federal administration and to protect California from deepening economic uncertainty. The hearing was designed as a means to an end: In the face of H.R. 1, escalating tariff conflicts, rising gas prices, and hundreds of harmful federal cuts, California must act decisively to protect affordability, safeguard our healthcare system, and preserve the vital services that millions of our residents rely on every day. 

During the hearing, lawmakers heard directly from workers and employers about how federal healthcare cuts, aggressive immigration enforcement, tariffs, and other policy shifts are affecting the livelihoods of Californians and the stability of the state’s labor market.

The hearing underscored the importance of state-level policies to stabilize the workforce, protect worker rights, and provide clarity and support for employers. Testimony highlights included:

• Statewide Economic Conditions: Testimonies stressed the ongoing economic pressures across California, including how reduced federal support or policy changes may increase demand on state-funded safety net programs, placing additional pressure on California’s budget.

• Federal Immigration Enforcement Impacts: Labor experts described how increased federal enforcement and policy shifts are constraining labor supply. Shannon Sedgwick, VP of Research for the LA County Economic Development Corporation, testified that following the immigration enforcement in LA County, 44% of affected employers lost more than 50% of their revenue.

• Employee Impacts: Workers shared concerns about how federal policy shifts have impacted their livelihoods and healthcare access. Wallace Wade, a member of the American Federation of Government Employees, testified that TSA workers are considered essential, so they are expected to work without pay, leaving them struggling to survive. Michelle Gutierrez-Vo, President of the California Nurses Association, reported that H.R. 1 has left people delaying their healthcare needs because of high deductibles and other expensive medical costs.

• California’s Response & Resistance: Testimonies focused on the state’s commitment to pushing back against harmful federal policies through strengthened worker protections and coordinated efforts to support both workers and employers.

As many workers continue to face economic insecurity, recent data shows that impacts are not felt equally. In 2025, Black unemployment in California reached 6.4%, with nearly one in eight Black workers considered unemployed or underemployed – above recession levels, indicating broader economic troubles ahead for California.

The testimonies gathered from the hearing will help guide California’s response to protect workers, strengthen the labor market, and uphold the state’s core values of fair wages, workers safety, and equitable access to opportunity.

View Full Committe Hearing