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Schwarzenegger Cuts California State Workers' Pay to Minimum Wage

5 years ago
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A California appeals court Friday upheld Gov. Arnold Schwarzenegger's decision to reduce some state workers' pay to the federal minimum wage until a budget is passed, but the official in charge of paychecks said he won't comply with the order.

The ruling by the 3rd District Court of Appeals comes a day after the governor ordered the pay of nearly 200,000 state employees to be reduced to $7.25 an hour for the month of July, The Los Angeles Times reported.

The court said the governor has "the authority to direct the Controller to defer salary payments...due to a budget impasse."

State Controller John Chiang, who control's California's checkbook, said Thursday he would defy Schwarzenegger's order. Chiang did not comment on the court decision Friday.

Under the governor's order, hourly workers would get minimum wage and managers who work on salary would have their pay reduced to $455 a week.

The state's Department of Personnel Administration said other employees who are not federally protected by minimum wage requirements, such as some of the state's doctors and lawyers, will go without pay for the month, according to Politico.

California's 2010-2011 fiscal year began Thursday with no budget in place and with the state facing an enormous deficit.

"We need to get a budget quickly. The longer we go without a budget, the longer state workers will be faced with minimum wage, furloughs and layoffs," Schwarzenegger's spokesman Aaron McLear told Politico. "That's why it is so important for the legislature to get us a budget as quickly a possibly. If we get a budget this all goes away."

Filed Under: Economy, Governors, Budget

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