Today(Fri), a state appeals court upheld Governor Schwarzenegger’s order to reduce most state-workers’ pay to the federal minimum wage. The order to slash public employee-pay to 7-dollars and 25-cents was given, after lawmakers failed to pass a state budget on time. The decision, however, was met with opposition from State Controller John Chiang(whose office issues paychecks). Today’s decision means that employees’ next paychecks will reflect the reduction, however workers would receive their full pay, retroactively, once a budget is passed. However, that won’t be until state lawmakers can work out a deal to close California’s 19-billion dollar budget shortfall.
