On Friday, July 2, 2010 the 3rd District Court of Appeals, affirmed a lower court decision and cited a 2003 case, siding with Governor Arnold Schwarzenegger recommendation to reduce California State Employees wages to $7.25 an hour, the Federal Minimum Wage Rate.
This recommendation from Governor Schwarzenegger was to cut the wages of state employees for every day the State of California is without a budget. The state started its new 2010-2011 fiscal year on Thursday, July 1, 2010 absent a budget.
