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Workplace Issues Today: California to delay wages, but computers say otherwise

A California appellate court ruled for Governor Schwarzenegger on Friday, giving him permission to cut state workers’ pay to the minimum wage until a state budget is passed. The change would cut state workers’ annual pay from an average of $65,000 a year to $15,000 a year. Workers would be reimbursed once a budget was passed, but officials say it could take up to six months for the reimbursement. The Governor is facing another issue from the controller’s office, which says that changing state employees’ wages to $7.25 an hour is not possible with the current computer system. A former payroll services employee said that to change the system now would violate the Fair Labor Standards Act and cause a lot of changes for the state payroll system. A system change for the payroll system has been in the works since 2004, but has been delayed. Until the issue is resolved, more than 200,000 employees remain unsure of their wages.

See Old technology foils Schwarzenegger’s wage order,” by Cathy Bussewitz, The Associated Press, Jul 06 2010 (SD)

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