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CSU Employees Not Impacted By Governor's Minimum Wage Order

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Claudia Keith (562) 951-4800

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(July 2, 2010) - In response to Governor Schwarzenegger's directive today to cut the pay of state workers to the federal minimum wage until a budget is passed, the California State University announced that CSU employees will continue to receive their regular compensation.

"We want to let CSU employees know that we have received confirmation from the State Controller's office that our employees' compensation is not impacted by this order," said CSU Chancellor Charles B. Reed. "Employees will receive their regular paychecks and can expect their normal compensation." The CSU intends to pay its employees with alternative revenue sources other than state general funds if it becomes necessary.

Gov. Schwarzenegger has announced an order to cut the pay of about 200,000 state workers to the federal minimum wage of $7.25 an hour until a budget is signed. Payroll decisions for the first month of the fiscal year, which began on July 1, do not need to be made until July 20.

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The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 433,000 students year round and 44,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. The CSU is renowned for the quality of its teaching and for the job-ready graduates it produces. A recent economic report found that the CSU supports more than 150,000 jobs statewide, annually. The engine driving job creation is more than $17 billion in economic activity that directly results from CSU-related spending that generates $5.43 for every dollar the state invests. The mission of the CSU is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California.

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