Why is California second best state to work in the US? New ranking explained
California is one of the best states to work in the United States, according to a new study by Oxfam America.
The Boston-based nonprofit organization gave the Golden State high marks for its wage policies, worker protections and employees’ rights to organize.
“Working families — no matter where they live — deserve support to thrive,” the group said in its Thursday, Aug. 28, report. “But as Congress fails to pass legislation, geographic inequality is growing and access to fundamental rights and decent wages increasingly depends on where you call home.”
These policy gaps don’t affect everyone equally, Oxfam America said. They “actually worsen inequality across lines of gender, race, and class.”
The group’s latest report examined every U.S. state, district and territory — including Puerto Rico and Washington, D.C.
Here’s where California ranked on Oxfam America’s list of the Best States to Work in the US in 2025:
Where is the best state to work in the US?
California topped Oxfam America’s list for best states to work in 2023, but Washington, D.C., claimed the top spot in both 2024 and the latest 2025 report.
Washington, D.C., earned an overall score of 87.66 out of 100 from Oxfam America.
The East Coast city scored 91.02 out of 100 for wage policies, 75 out of 100 for worker protections and a straight 100 for employees’ rights to organize.
California was the second-best place to work, the group found, while Oregon came in third.
Why is California one of the best states to work in US?
Oxfam America gave California an overall score of 85.11 out of 100.
The Golden State received a score of 76.13 out of 100 for wage policies, 85.71 out of 100 for worker protections and 100 out of 100 for workers’ rights to organize.
What are California minimum wage policies?
Most states — including California — have implemented minimum wages above the federal base pay of $7.25, according to the U.S. Department of Labor.
California’s minimum wage is $16.50 per hour.
In 2024, fast food workers in California, which includes more than 60 establishments offering “limited-service,” began earning a minimum of $20 per hour.
Some health care workers now earn a higher minimum wage that ranges up to $25 an hour, depending on where they work and the type of facility.
Additionally, several California cities, including San Diego, West Hollywood and Los Angeles began offering a higher minimum wage than the state as of Jan. 1, according to the UC Berkeley Labor Center.
These cities have a minimum wage above $17 per hour.
How does California protect workers’ rights?
Many states — including California — have established policies for the health and well-being of the working class, Oxfam America said.
“In California, workers are protected by labor laws,” the state Department of Industrial Relations’ Labor Enforcement Task Force said. “It does not matter where you were born or what your legal status is.”
These rights include:
- Rest and meal breaks
- Minimum wage and overtime
- Benefits if injured or unemployed
- Safe and healthy jobs
- Taking action without being punished
What rights and protections do parents have in California?
In California, new parents and pregnant employees have some of the strongest workplace protections in the country.
The state’s Family Rights Act allows pregnant individuals to request up to four months of disability leave, lighter duties and reasonable accommodations including longer breaks.
Employers are also prohibited from firing someone because of pregnancy or for taking disability leave. When returning to work, employees are entitled to the same job — or a similar one — with equivalent pay, hours and location.
According to the U.S. Department of Labor, most employees are allowed breaks for nursing and a private space to pump breast milk for up to one year after their baby is born.
Do California workers have the right to organize?
California has strong policies to ensure workers have the right to organize, according to the Department of Industrial Relations Labor Enforcement Task Force.
This can mean collectively bargaining with employers and negotiating wages.
Where are the best states to work for employees in US?
These are the top 10 states and districts for workers in 2025, according to Oxfam America:
1. Washington, D.C.
2. California
3. Oregon
4. New York
5. Washington
6. Illinois
7. New Jersey
8. Connecticut
9. Massachusetts
10. Colorado
Where are the worst states to work?
According to Oxfam America’s findings, these 10 states ranked as the worst places to work in 2025:
1. North Carolina
2. Mississippi
3. Alabama
4. Georgia
5. Tennessee
6. South Carolina
7. Texas
8. Utah
9. Wyoming
10. Louisiana
How did Oxfam America come up with its findings?
Oxfam America ranked the best and worst states to work in 2025 by looking at wages, worker protections and the right to form unions.
The group checked if workers earned enough to support a family; whether benefits like paid leave and breastfeeding breaks were available; and if workers could organize without fear of retaliation.
Data was collected from several sources, including the U.S. Department of Labor, state legislatures and the Bureau of Economic Activity.
This story was originally published September 2, 2025 at 5:00 AM with the headline "Why is California second best state to work in the US? New ranking explained."
