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Minimum Wage Order

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Sacramento, CA — Governor Schwarzenegger is ordering that 200,000 state employees have their salary dropped to the federal minimum wage.

It is in response to July 1st passing without a budget in place. The Governor’s plan calls for the workers be paid back in full retroactively once the budget is passed.

State Controller John Chiang has issued a statement saying he does not plan to follow the Governor’s order, meaning that this could end up in court.

The order does not affect 37,000 workers that are in unions that have recently negotiated new contracts with the Governor’s Office, and this includes agencies like the CHP.

Doctors and attorneys are also exempt because federal minimum wage laws do not apply to their professions. California faces a $19 billion deficit.

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