Minimum Wage Lawsuit

More About the Minimum Wage Issue

Gilb v. Chiang (Minimum Wage Case 

During July 2008, in the midst of a budget deadlock with the state legislature, Governor Schwarzenegger issued an Executive Order directing State Controller John Chiang to cut state employees pay to the minimum amount required by the Fair Labor Standards Act. When Controller Chiang refused, the Governor’s Department of Personnel Administration filed suit on August 11, 2008 seeking a court order precluding the Controller from paying employees above the FLSA minimums. CAPS intervened in support of the Controller and is a party to the case. Following a hearing in February 2009, the court ruled in favor of the Governor, meaning that in a future budget impasse, the Governor could direct the Controller to pay minimum wage. The Controller, CAPS, and other employee organizations have appealed the decision to the Third District Court of Appeal. Briefing is just beginning and will wrap up near the end of the year.