Friday, July 2, 2010

No Minimum Wage for CSU Employees

On July 2nd, after a state appeals court ruled that salaries of more than 200,000 state workers can legally be reduced to the federal minimum wage, both the CSUEU and the CSU completed their review of the Governor's order. Both groups are in agreement that this ruling does not apply to CSU employees, and we should all expect to receive our regular, post-furlough salaries.

The following statement is from CSUEU's website:

Yesterday, Gov. Schwarzenegger made public an executive order that could temporarily reduce pay for more than 200,000 state workers to the federal minimum wage of $7.25 per hour.

According to the union's and CSU's review, the executive order does not apply to CSU staff or to other CSU employees. Unlike many other state agencies, the CSU and other public higher education segments generally are not under the direct executive authority of the governor.

State Controller John Chiang, whose office issues state paychecks, released a statement yesterday saying that he won't follow the order unless a court tells him to. Today, the California Court of Appeal, looking at a similar executive order from 2008, held that Schwarzenegger had the authority to issue such an order.

Chiang can -- and likely will -- seek a review of the appellate court decision by the California Supreme Court in the coming days and weeks.

The Chancellor's Office also published their own response:

CSU Employees Not Impacted By Governor's Minimum Wage Order


(July 2, 2010) – In response to Governor Schwarzenegger's directive today to cut the pay of state workers to the federal minimum wage until a budget is passed, the California State University announced that CSU employees will continue to receive their regular compensation.

"We want to let CSU employees know that we have received confirmation from the State Controller's office that our employees' compensation is not impacted by this order," said CSU Chancellor Charles B. Reed. "Employees will receive their regular paychecks and can expect their normal compensation." The CSU intends to pay its employees with alternative revenue sources other than state general funds if it becomes necessary.

Gov. Schwarzenegger has announced an order to cut the pay of about 200,000 state workers to the federal minimum wage of $7.25 an hour until a budget is signed. Payroll decisions for the first month of the fiscal year, which began on July 1, do not need to be made until July 20.

1 comment:

Rich said...

At the last Board of Trustees meeting, Chancellor Reed announced that the CSU had enough cash on hand to meet employee payroll for at least two months, should that ever become necessary.

Perhaps this is what is meant by the reference to "alternative revenue sources"?