The California Minimum Wage Debate
This latest court action is in response to the state"s Controller John Chiang refusal to follow the order based on his stance that the state"s payroll system, all computerized, simply cannot handle the change. The current lawsuit filed by the governor is seeking a restraining order that would force Chiang to make those changes. A. Harrison Barnes says this debate is one that will surely have long term effects and is one that the entire country is watching closely.Many had predicted at least some of the state"s 200,000 government workers would be seeking new employment opportunities elsewhere; so far, that hasn"t been the case. The LegalAuthority.com founder says many are waiting to see how the courts ultimately decide before making any decisions. Others say it"s more likely because there simply aren"t any newer jobs that are available. Whatever the reasons, it"s growing into a hotly debated topic, regardless of who the employees work for.
In late July, 2010, an appellate court agreed with Schwarzenegger"s argument that the change could move forward since the state was working under the lack of an approved fiscal year budget. Once the budget"s been passed, things could become a bit sticky for both the legal and employment sectors. Still, there are questions as to when the new budget will be passed and if its lack of passage now doesn"t have at least something to do with waiting until the courts decide the legalities of the demands for minimum wage.
Clearly, says A. Harrison Barnes, there are no easy answers. It boils down to either keeping all of the state"s government employees at a reduced salary or lay off many, which will further the state"s already overburdened unemployment budgets. And too, many are questioning just how much they"ll be able to do with $7.25 per hour, especially when their lifestyles support the salaries they"re accustomed to. To be sure, there are ramifications that can affect every employee and in fact, every citizen of the state if the already stressed financial structure continues to falter.
For now, the courts are preparing to hear the governor"s arguments and will likely pass down a decision that could effectively force the controller"s office to make significant changes to its electronic infrastructure so that salaries of the affected employees can each take major hits.
Chapter Two"s coming, but one thing"s or sure, this is one of those cases where there are no winners, not really, and surely no solutions that will benefit all.