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DPA issues Draft Pay Letter to State Controller's Office regarding August paychecks
Letter from DPA Director to State Controller
Letter from DPA Director Dave A. Gilb to State Controller John Chiang
August 5, 2008
The Honorable John Chiang
California State Controller
300 Capitol Mall, Suite 1850
Sacramento, California 95814
Dear Mr. Chiang,
The California Supreme Court held in White v. Davis that in the absence of an approved state budget, the Controller has no legal authority to issue warrants against the State Treasury for employee salaries except as required by federal labor law.
As the Director of the Department of Personnel Administration (DPA), I am charged by state law with the duty to administer and enforce laws pertaining to state employee compensation. In accord with White v. Davis and with my obligations under federal and state law, I am providing you with the attached pay letter concerning the payment of wages.
In general, the attached pay letter authorizes the following wage payments during a budget impasse:
(1) Pay all non-exempt (Workweek Group II) state employees the federal minimum wage of $6.55 per hour.
(2) Pay all Executive, Administrative and Professional (EAP) (Workweek Group E) employees $455.00 per week. This amount represents the minimum salary required by the FLSA in order preserve the EAP exemption.
(3) Delay payment of all wages to employees covered by the Code of Federal Regulation sections 541.303 and 541.304 (Workweek Group SE). These employees are exempt from the salary basis test and are not subject to any minimum salary requirements and therefore will not receive any compensation until after adoption of a state budget.
(4) Continue to delay payment of wages to employees who are not covered by the FLSA including elected officials, appointees of elected officials and their personal and legal staffs, until after adoption of a state budget.
With regard to (1) above, the attached pay letter includes a list of departments and programs not subject to the overtime prohibition in the Executive Order due to the critical nature of the work performed by these departments and programs. For these departments and programs, there is a reasonable expectation that the non-exempt state employees will work overtime. Therefore, the pay letters are excluding these departments and programs.
The Director of the Department of Finance and I are prepared to work with you to develop and implement the necessary mechanisms to comply with White v. Davis and the FLSA. My office will be contacting your office shortly to schedule a meeting with appropriate staff.
Sincerely,
Dave A. Gilb
Director
cc: Bill Curtis, Chief Counsel, Department of Personnel Administration
Mike Genest, Director, Department of Finance
Dan Dunmoyer, Cabinet Secretary, Governor's Office
Andrea Hoch, Legal Affairs Secretary, Governor's Office
Draft Pay Letter
Pay Letter: 08-xx
Issue Date:
Department of Personnel Administration
Section I
Summary of Provisions Concerning the Payment of Salaries in the Absence of a State Budget
Located on DPA's Public Web Site
This Draft Pay Letter is pursuant to Executive Order S-09-08
Special Salary Payment Instruction: (Effective 07/31/08)
To comply with federal labor law and the California Supreme Court's decision in White v. Davis, in the absence of an approved state budget WWG 2, E, and SE classes shall be paid as follows:
WWG 2: (Except for the departments and programs listed on Attachment A)
$1,153 per month
$52.40 per day
$6.55 per hour
WWG E: (Equivalent to $455.00 per week to meet FLSA requirements)
$2,003 per month
$91.00 per day
$11.38 per hour
WWG SE:
0 per month
0 per day
0 per hour
DOCUMENTATION:
Attachment A (Applies to WWG 2 Only)
California Highway Patrol
Department of Transportation
Department of Veterans Affairs
Department of Developmental Services
Department of Mental Health
Military Department
Office of Emergency Services
Department of Water Resources
Department of Forestry (CALFIRE)
Department of Parks and Recreation
California Conservation Corps
Department of Fish and Game
Office of Spill Prevention
Agriculture Security and Emergency Response in the Department of Food and Agriculture
Draft Exempt Pay Letter
Date: August 5, 2008
To: Personnel Officers
From: Department of Personnel Administration, Executive Compensation Unit
Subject: Exempt Salary Program-Payment of Salaries During Time of No Budget
To comply with federal labor law and the California Supreme Court's decision in White v. Davis, in the absence of an approved State budget, WWG 2, E, and SE Exempt appointees shall be paid as follows:
| WWE | WWG 2 | WWG SE |
|---|---|---|
| $2,003 per month | $1,153 per month | $0.00 per month |
| $91.00 per day | $52.40 per day | $0.00 per day |
| $11.38 per hour | $6.55 per hour | $0.00 per hour |
This salary payment is effective July 31, 2008 and will remain in effect until a budget is passed and certified.
Updated August 6, 2008 at 3:32 PM.