Gov. Schwarzenegger’s order to pay about 200,000 state workers the federal minimum wage of $7.25 an hour until a budget is signed was upheld by the Third District Court of Appeals. However, State Controller John Chiang has said that the state’s current payroll system is not capable of complying with the order. The governor’s office on Tuesday filed a lawsuit in Sacramento Superior Court seeking to force the state controller to comply with the order.
"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. "Regardless of the outcome of the court proceedings, CSU employees will receive their regular paychecks and can expect their normal compensation." If it becomes necessary, the CSU will pay its employees with alternative revenue sources other than state general funds.