EMPLOYMENT LAW: CA State Workers to Receive Federal Minimum Wage

July 2, 2010

Sacramento - At least 200,000 state employees will start receiving federal minimum wage in the absence of a budget plan from the Legislature.

According to reports, the 3rd District of Appeals ruled that Gov. Arnold Schwarzenegger has the power and authority to cut the employees’ salary, which will become $ 7.25 per hour, until a proper budget plan is delivered.

This decision was announced a day after State Controller John Chiang, who is in-charge of issuing paychecks, refused to obey the governor’s order.

Reports said the state appeals’ ruling was based on a 2008 case, in which a similar budget impasse had prompted Schwarzenegger to impose a salary reduction for state workers.