California has earned a top spot in a national assessment of worker protections, wages, and organizing rights, according to the 2025 Best States to Work Index released by Oxfam America. The advocacy group ranked California second overall, just behind the District of Columbia, with an overall score of roughly 85.45 out of 100. Some outlets have cited a slightly different figure of 85.11, but both reflect California’s strong performance in creating a favorable environment for workers.
The index evaluates 27 policies across three categories: wages, worker protections, and rights to organize. California excelled in each area. On wages, the state has one of the highest minimum wage standards in the country and allows local governments to set even higher rates, ensuring that pay levels better reflect regional costs. Its unemployment insurance system and wage-related protections also contribute to its high marks.
California’s labor laws go further by guaranteeing a wide range of worker protections. These include paid sick leave, family and medical leave, and specific safeguards for farmworkers, domestic workers, and other vulnerable groups often left out in other states. Rules on scheduling, breaks, and wage theft enforcement give California one of the most comprehensive protection systems in the nation.
The state also performs strongly on workers’ rights to organize. Unlike many “right-to-work” states, California law supports collective bargaining and shields employees from retaliation when they engage in union activity. This framework strengthens worker bargaining power and contributes to the state’s consistently high placement in Oxfam’s rankings.
Experts caution, however, that strong laws do not always translate into equal outcomes for all workers. California’s high cost of living, especially in housing, continues to strain household budgets and may diminish the impact of higher wages. Enforcement of protections can also vary, and groups such as gig workers, undocumented employees, and those in informal arrangements often face gaps in coverage. Oxfam itself acknowledges that its index measures laws on paper rather than lived experiences in every workplace.
