The State Worker: Schwarzenegger cuts compensation for exempt employees

The State Worker

Chronicling civil-service life for California state workers

October 7, 2010

Schwarzenegger cuts compensation for exempt employees

Gov. Arnold Schwarzenegger has ordered compensation cuts for state managers and supervisors that mirror those in the tentative labor contracts reached with SEIU Local 1000 and six other unions.

From the administration's press release:

Governor Arnold Schwarzenegger today issued Executive Order (EO) S-15-10 directing the Department of Personnel Administration to adopt a comprehensive plan to reduce employee compensation for non-represented state employees, including supervisors and managers; non-statutory exempt state employees; and statutory exempt employees. The plan shall be similar to the recently negotiated contract agreements with seven unions including increasing employees' monthly pension contribution and a 12-month personal leave program where salaries will be reduced equal to one day of pay per month. It will also roll back retirement formulas used to calculate pension payments for new employees to pre-1999 levels.

The administration says that the order affects 35,000 employees. All told, 167,000 union and exempt workers are now under new working terms (or will be, assuming all ratify their tentative agreements). Unions representing another 63,000 state workers haven't accepted contracts with concessions.

~~We've asked the administration how many employees the order will impact. We'll update this post when we find out.~~

Click here to read Executive Order S-15-10.

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