SACRAMENTO, Calif. – Gov. Arnold Schwarzenegger on Thursday ordered about 200,000 state workers to be paid the federal minimum wage this month because the state Legislature has not passed a budget, but the state controller is refusing to comply.
Director Debbie Endsley sent the order in a letter to the state controller, who refused a similar order two years ago. The matter is tied up in the appellate courts, leading the controller to say he will abide by whatever final ruling emerges, which could be years down the road. He said he can't follow the order now due to technical and legal issues.
In a statement, Chiang said it was not possible with the state's current technology to pay some employees their full salaries and others minimum wage. He also said his office and the governor's have been working on a system upgrade, but it will not be ready until October 2012.
Schwarzenegger's order, if implemented, could cost the state billions of dollars because the action would violate employment law, Roper said. He cited the which he says entitles a worker to "double damages" if an employer cuts pay to minimum wage.
