Gov. Arnold Schwarzenegger has ordered about 200,000 state workers to be paid the federal minimum wage because the state Legislature has not passed a budget. Department of Personnel Administration Director Debbie Endsley sent the order Thursday in a letter to the state controller. Most state employees will be paid the federal minimum of $7.25 per hour for the July pay period.
Schwarzenegger spokesman Aaron McLear says the change should be reflected in state employees' next paycheck. Workers will be paid in full retroactively once a budget is passed.
The Legislature has failed to take steps to close California's $19 billion budget deficit, even as the new fiscal year began Thursday.