June 28, 2010
Pay reductions useless, costly
LETTERS TO THE EDITOR: Re "Governor's threat triggers concessions" (Editorial, June 24): Helping the governor leverage labor contracts is not the controller's job. My job is protecting the state's pocketbook. Reducing state salaries to the federal minimum wage will do nothing to solve the budget deficit. But it will cost California billions of dollars in penalties and damages for violating the federal Fair Labor Standards Act and the California Constitution.
Two examples: First, retirement contributions are constitutionally protected and must be paid in full and on time as if employees were receiving their full wages. Because employer and employee contributions are calculated as a percentage of the employee's gross pay for the month, those contributions will be underpaid...
LINK - Read the FULL letter @ SacBee.com
