Computer problems or no computer problems, Dave Gilb, director of the state Department of Personnel Administration, sent this letter moments ago to state Controller John Chiang.
It's the next step in the dispute between the administration and the controller's office over whether state worker pay can or should be dropped to federal minimum wage.
Chiang has said he will refuse to comply with the governor's request. Then the ball will move back to the governor's court for a decision on whether to sue Chiang.
August 5, 2008
The Honorable John Chiang
California State Controller
300 Capitol Mall, Suite 1850
Sacramento, California 95814
Dear Mr. Chiang,
The California Supreme Court held in White v. Davis that in the absence of an approved state budget, the Controller has no legal authority to issue warrants against the State Treasury for employee salaries except as required by federal labor law.
As the Director of the Department of Personnel Administration (DPA), I am charged by state law with the duty to administer and enforce laws pertaining to state employee compensation. In accord with White v. Davis and with my obligations under federal and state law, I am providing you with the attached pay letter concerning the payment of wages.
In general, the attached pay letter authorizes the following wage payments during a budget impasse:
(1) Pay all non-exempt (Workweek Group II) state employees the federal minimum wage of $6.55 per hour.
(2) Pay all Executive, Administrative and Professional (EAP) (Workweek Group E) employees $455.00 per week. This amount represents the minimum salary required by the FLSA in order preserve the EAP exemption.
(3) Delay payment of all wages to employees covered by the Code of Federal Regulation sections 541.303 and 541.304 (Workweek Group SE). These employees are exempt from the salary basis test and are not subject to any minimum salary requirements and therefore will not receive any compensation until after adoption of a state budget.
(4) Continue to delay payment of wages to employees who are not covered by the FLSA including elected officials, appointees of elected officials and their personal and legal staffs, until after adoption of a state budget.
With regard to (1) above, the attached pay letter includes a list of departments and programs not subject to the overtime prohibition in the Executive Order due to the
critical nature of the work performed by these departments and programs. For these departments and programs, there is a reasonable expectation that the non-exempt state employees will work overtime. Therefore, the pay letters are excluding these departments and programs.
The Director of the Department of Finance and I are prepared to work with you to develop and implement the necessary mechanisms to comply with White v. Davis and the FLSA. My office will be contacting your office shortly to schedule a meeting with appropriate staff.
Sincerely,
Dave A. Gilb
Director
cc: Bill Curtis, Chief Counsel, Department of Personnel Administration
Mike Genest, Director, Department of Finance
Dan Dunmoyer, Cabinet Secretary, Governor's Office
Andrea Hoch, Legal Affairs Secretary, Governor's Office
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