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Schwarzenegger's California State Worker Minimum Wage Fight Goes to Court

July 7, 2010

In recent news that our Santa Ana, California Employment Attorneys have been following, the administration of Governor Schwarzenegger has filed a new lawsuit this week against Controller John Chiang, to force Chiang to lower wages of state workers in California to the federal minimum wage--a change that would start at the end of the month. This is another development in the ongoing and heated fight between Schwarzenegger and Chaing over the wages paid to state workers when the state budget is not yet signed.

The lawsuit reportedly seeks to make Chiang compensate California governmental workers $7.25 an hour instead of paying them with full salaries, until the governor can reach an agreement with lawmakers on how to deal with an over $19 billion deficit for the new fiscal year.

Last week Schwarzenegger was reportedly given support by a California appellate court to order cutting the pay of 240,000 state workers to the minimum wage, until the budget of the current fiscal year is signed. The administration argued that in the absence of a budget, they are bound by law to slash the wages. Back pay, claims the administration, would then be given to state workers once the budget is enacted.

This is reportedly the second time that Schwarzenegger has tried to implement this change, and Chaing claims that he won't obey the governor's demands until the California Supreme Court orders him to do so. Chaing announced this week that he will protect California workers from the "reckless executive order" of the governor.

Chaing also reportedly claimed that the state's out of date computer payroll system makes it impossible to follow the governor's order, and that the change would in fact violate the law, leading taxpayers to monetary fines and damages.

In cities throughout Orange County, California, contact Howard Law, PC today.

California Minimum Wage Fight Heads Back to Court, The Associated Press, July 6, 2010

Schwarzenegger Seeks Immediate Action on Minimum Wage, Sacramento Business Journal, July 7, 2010

Governor Sues to Push State Pay Cuts Through, San Francisco Gate, July 7, 2010

Related Web Resources:

Department of Fair Employment and Housing (DFEH): The Fair Employment and Housing Act (FEHA)