Many Downtown Sacramento business owners are surprised after the governor's mandate for state workers to return to the office four days a week starting on July 1 is now on pause.

The delay comes after months of state workers picketing and labor unions negotiating. 

"Feeling like the stress has been lifted and feeling like there's more money in their pocket," said Cecilia Wilson, who works for the Department of Education and is on the board of SEIU 1000, the state's largest labor union. 

More money may be staying in state workers' pockets, but not in the pockets of struggling downtown business owners.

Many of these businesses over the past few months have been gearing up for a business boom starting July 1, but now it's looking like it may be a business bust. This comes after over five years of struggling with a quieter downtown since most state workers went remote during the pandemic.

"We are thriving off of them," said Cheryl Hernandez, co-owner of Bumble Bear Coffee. "That is 98% of our customers. These two-days-a-week people." 

Local developer John Vignocchi told CBS13 that state workers staying home is bad for existing businesses and for attracting new ones. 

"If you love Sacramento, this is not a good thing," said Vignocchi. "It kind of shows who runs the government. Certainly not Newsom, not legislatures or those who said they want the workers back five years after they vacated." 

Gov. Gavin Newsom has stayed strong in his stance on the return-to-office mandate but has now gone silent with the last-minute switch-up.

"I think it's important for people to collaborate where people get the benefits, particularly young employees. mentorship and support," Newsom said during a press conference back in May. 

Labor unions reached an agreement that will pause the return to office mandate four days a week until July 1, 2026. 

"Even though it will impact my business, I will still be on the state workers' side," said Hernandez. "It does give the opportunity to do something outside of the box to attract people." 

CBS13 reached out to the governor's office for comment. It directed us to Cal HR to respond on the administration's behalf. It gave this statement:

The California Department of Human Resources has reached a Side Letter with SEIU Local 1000 representing employees in bargaining units 1, 3, 4, 11, 14, 15, 17, 20, and 21. Upon approval by the Legislature and the Governor, the agreement's terms will be effective through June 30, 2027, unless modified between the parties through a successor memorandum of understanding or subsequent side letter. We are pleased to have reached an agreement with the leadership of SEIU Local 1000. Through collective bargaining, the parties' agreement achieves savings as proposed in the Governor's May Revision. Also, the parties mutually agreed to suspend the return to office requirements until July 1, 2026, as part of a comprehensive agreement that addresses many mutual priorities. Agreements reached and a summary of the agreements are posted on the CalHR website.