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State Employee Wage Uncertainty 7/4/10 TDH

Uncertainty remains about how much most state employees will be paid this month.   Despite an appeals court ruling on Friday that upheld Governor Schwarzenegger’s order for state workers to be paid the federal minimum wage, the state Controller’s office is saying the change is technically impossible.   The governor made the order after lawmakers failed to pass a state budget on time.  Although employees would receive their full pay after the budget is passed, Controller John Chiang said it could take as long as 6-months to reimburse them, and rejected the order.   That forced the courts to rule on the matter, however the Controller said he still cannot make the change, due the state’s outdated computer system.  The state’s payroll system was last re-designed in 1970.  An update of the computerized system was authorized in 2004, however it has not been completed.

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