California workers targeted by a gubernatorial order to cut their pay to federal minimum wage have dodged that bullet – at least for August.
A Sacramento Superior Court judge Wednesday set a hearing to decide the pay dispute for Sept. 12, too late to affect this month's payroll.
Judge Timothy Frawley's timetable ensures that 145,000 state employees and an additional 30,000 managers and supervisors will receive full pay for August.
Gov. Arnold Schwarzenegger envisioned when he signed his minimum-wage order July 31 that it would take effect this month. His intent was to conserve cash during a budget standoff over a $15.2 billion deficit.
The order would temporarily slash pay for most state employees to the federal minimum wage of $6.55 per hour, with managers and supervisors receiving a salary of $11.38 per hour. Employees would receive their back pay once a state budget is signed.
State Controller John Chiang has balked at cutting pay even temporarily, however, prompting the Schwarzenegger administration to file the lawsuit. Chiang contends he has a legal responsibility to pay workers their full salaries and that an outdated computer system makes a quick switch impossible.
Lynelle Jolley, spokeswoman for the Department of Personnel Administration, said the state is pushing to implement the pay order as quickly as possible.
"We're disappointed that we won't achieve the $764 million in savings this month," Jolley said of Wednesday's hearing.
Jolley conceded, however, that Wednesday's session was designed to expedite a hearing schedule in the case – not to fight for an instant order.
Frawley set Sept. 12 as the date for a hearing on a preliminary injunction and a permanent writ, which collectively would decide whether Chiang is legally bound to enforce the pay order.
"The controller has said from Day One that he will continue to pay state workers their full salaries unless there's a court order that he cannot," said Hallye Jordan, Chiang's spokeswoman.
The Sept. 12 court date is about a week before the state's payroll closes for that month, according to the controller's office.
Frawley allowed several labor groups to join the case as intervenors Wednesday. They included Service Employees International Union and the California Correctional Peace Officers Association.
Frawley cautioned that consideration is being given to reassigning the minimum-pay case to another judge, Patrick Marlette, which could alter the hearing schedule.
Even if a new state budget is signed before the case is resolved – making this year's pay battle moot – the lawsuit will not be dropped, Jolley said.
"We believe it's time to settle the question of how state employees get paid during a budget impasse," she said.
Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.
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