California Enacts Law Requiring Large Corporations to Pay Fair Share of Employee Health Costs

PLEASANTON, CA —

Gov. Gavin Newsom has signed into law the Fair Share from Big Corporations Act, a measure designed to ensure that the state's largest companies help cover the public cost of health coverage for their employees rather than shifting that burden to taxpayers.

The new law, Senate Bill 177 by the Committee on Budget and Fiscal Review, is intended to protect Medi-Cal and the health-care services that millions of Californians rely on. Supporters say it marks a significant step in holding the biggest and most profitable corporations accountable for the cost of their workers' health benefits.

California supports innovation, investment, and the businesses that drive our economy. But we also believe the biggest and most profitable companies should do their fair share — not shift the cost of employee health care onto taxpayers.

Newsom said the law is part of the state's effort to protect working families as the federal government cuts health spending. Legislative leaders framed the law as a response to federal health-care cuts.

Senate President pro Tempore Monique Limón said the measure will help ease the burden the state faces from federal health-care cuts, and Assembly Speaker Robert Rivas said that if Congress will not reverse what he called draconian federal health cuts, California must find new ways forward.

The law directs the state to develop a plan to implement the policy, which backers say will strengthen Medi-Cal and reduce the subsidies taxpayers currently provide for corporate employee health coverage. Pleasanton, in the Tri-Valley region of the East Bay east of San Francisco, has a population of about 80,000.

Sources

https://www.gov.ca.gov/2026/07/08/governor-newsom-signs-legislation-to-ensure-corporations-pay-their-fair-share-protecting-vital-services-for-californians/