Court narrows California’s Diwali holiday protections

A California court has invalidated parts of the state’s Diwali holiday law, creating uncertainty over how schools and public employers must accommodate those observing the Festival of Lights.

The ruling leaves the formal recognition of Diwali as a state holiday intact but limits provisions governing its implementation, the Hindu American Foundation said. The organisation described the judgment as a setback for a measure intended to allow families to celebrate without students missing classes or public employees sacrificing pay.

Governor Gavin Newsom signed Assembly Bill 268 on 6 October 2025, adding Diwali to California’s statutory list of holidays from 1 January 2026. The legislation was authored by Assembly members Ash Kalra of San Jose and Darshana Patel of San Diego and passed with broad bipartisan support.

The law authorises public schools and community colleges to close for Diwali when arrangements are incorporated into agreements between governing boards and represented employees. It also provides excused absences for pupils and allows eligible state, school and community college employees to take paid time off under specified conditions.

California’s recognition did not create an automatic day off across government, close every school or establish Diwali as a judicial holiday. Lawmakers specifically excluded it from the calendar of judicial holidays, meaning courts were not required to close.

The measure also permitted schools and educational institutions to conduct exercises acknowledging the meaning and importance of Diwali. Supporters presented that provision as a tool for improving religious literacy and reducing the social isolation experienced by children whose family celebrations fall on ordinary school days.

The court’s partial rejection has raised questions about whether some of the law’s accommodation and educational provisions were drafted too broadly. The full impact will depend on the final order, any amendments adopted by the legislature and whether the judgment is challenged in a higher court.

The Hindu American Foundation said it was examining the decision and its implications for Hindu pupils, families and public-sector workers. The group had been among the principal organisations campaigning for the legislation and had called California’s version one of the country’s most extensive Diwali recognition measures.

Any appeal is likely to focus on the distinction between constitutionally permitted religious accommodation and government endorsement of religion. United States courts have generally allowed public institutions to make reasonable arrangements for religious observance, provided they neither promote a faith nor pressure people to participate.

Educational programmes concerning religious festivals are also permissible when presented objectively as part of history, culture or comparative religion. Constitutional problems can arise when classroom activities become devotional, favour one belief system or encourage religious participation.

California’s law sought to navigate that boundary by authorising schools to acknowledge Diwali rather than requiring religious ceremonies. It identified the festival’s importance to Hindus, Sikhs, Jains and Buddhists while emphasising themes including light over darkness, knowledge over ignorance and good over evil.

Diwali is observed on a date determined by lunar calendars and usually falls in October or November. Celebrations commonly include the lighting of oil lamps, prayers, family gatherings, sweets, gifts and community events. Traditions and religious interpretations differ across regions and faiths.

California has the largest population of people of South Asian origin among US states. An estimated 960,000 people of Indian origin live there, representing roughly one-fifth of the nationwide population. Large communities are concentrated around the San Francisco Bay Area, Los Angeles, San Diego and Sacramento.

The state became the third in the US to place Diwali on its official holiday list, following Pennsylvania and Connecticut. New York City public schools have also designated Diwali as a school holiday, while districts elsewhere have adopted closures or excused-absence policies based on local enrolment and community demand.

Supporters of AB 268 argued that recognition was particularly important for children who previously had to choose between attending school and joining significant family observances. Employees also faced difficulties securing leave during a festival whose date changes annually.

Critics of adding holidays to state calendars have questioned the administrative cost, the potential disruption to school schedules and the challenge of deciding which cultural or religious observances merit formal recognition. The California legislation attempted to address those concerns by making most closures optional and linking employee leave to existing workplace procedures.