Governor Arnold Schwarzenegger (Associated Press) |
SACRAMENTO -- A state appellate court on Friday sided with Governor Arnold Schwarzenegger's attempt to temporarily impose the federal minimum wage on tens of thousands of state workers.
It was not immediately clear how the ruling would affect Schwarzenegger's order a day earlier to pay 200,000 state workers the federal minimum of $7.25 an hour as the state wrestles with a budget crisis.
The state controller, who cuts state paychecks, has refused to comply with the order. Friday's ruling affirms a lower-court decision in favor of the administration in a lawsuit filed two years ago after the governor's first attempt to impose the minimum wage.
The latest ruling from the California 3rd District Court of Appeal in Sacramento concludes that state Controller John Chiang cannot ignore the minimum wage order from the state Department of Personnel Administration.
It says "the DPA has the authority to direct the controller to defer salary payments in excess of federally mandated minimum wages when appropriations for the salaries are lacking due to a budget impasse."
But Chiang said in a news release that he interpreted the court ruling to mean that his office would not have to comply with the executive order if it was practically infeasible to do so.
"I will move quickly to ask the courts to definitively resolve the issue of whether our current payroll system is capable of complying with the minimum wage order in a way that protects taxpayers from billions of dollars in fines and penalties," Chiang said in the statement.
The Republican governor issued the order this week on the first day of the new fiscal year because the state remains without a budget, as lawmakers remain far apart on ways to close California's $19 billion deficit.
Lynelle Jolley, spokeswoman for Schwarzenegger's personnel department, said the ruling means the controller's office must follow the minimum wage order.
Schwarzenegger's minimum wage order will not affect all of California's 250,000 government employees. The 37,000 state workers represented by unions that recently negotiated new contracts with the administration will continue to receive their full pay. The contracts, including one with California Highway Patrol officers, contain pay cuts and pension reforms.
Salaried managers who are not paid on an hourly basis would see their pay cut to $455 a week. Doctors and lawyers who work for the state will not be paid at all until a budget is signed because minimum wage laws do not apply to those professions.
It was not immediately clear how the ruling would affect Schwarzenegger's order a day earlier to pay 200,000 state workers the federal minimum of $7.25 an hour as the state wrestles with a budget crisis.
The state controller, who cuts state paychecks, has refused to comply with the order. Friday's ruling affirms a lower-court decision in favor of the administration in a lawsuit filed two years ago after the governor's first attempt to impose the minimum wage.
The latest ruling from the California 3rd District Court of Appeal in Sacramento concludes that state Controller John Chiang cannot ignore the minimum wage order from the state Department of Personnel Administration.
It says "the DPA has the authority to direct the controller to defer salary payments in excess of federally mandated minimum wages when appropriations for the salaries are lacking due to a budget impasse."
But Chiang said in a news release that he interpreted the court ruling to mean that his office would not have to comply with the executive order if it was practically infeasible to do so.
"I will move quickly to ask the courts to definitively resolve the issue of whether our current payroll system is capable of complying with the minimum wage order in a way that protects taxpayers from billions of dollars in fines and penalties," Chiang said in the statement.
The Republican governor issued the order this week on the first day of the new fiscal year because the state remains without a budget, as lawmakers remain far apart on ways to close California's $19 billion deficit.
Lynelle Jolley, spokeswoman for Schwarzenegger's personnel department, said the ruling means the controller's office must follow the minimum wage order.
Schwarzenegger's minimum wage order will not affect all of California's 250,000 government employees. The 37,000 state workers represented by unions that recently negotiated new contracts with the administration will continue to receive their full pay. The contracts, including one with California Highway Patrol officers, contain pay cuts and pension reforms.
Salaried managers who are not paid on an hourly basis would see their pay cut to $455 a week. Doctors and lawyers who work for the state will not be paid at all until a budget is signed because minimum wage laws do not apply to those professions.
