Schwarzenegger Can Furlough Workers, Top Court Rules
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California Governor Arnold Schwarzenegger had the authority to furlough state workers last year to save money during a budget crisis, the California Supreme Court ruled today.
Schwarzenegger, who in July 2009 faced a $24 billion deficit, ordered more than 150,000 state workers to take time off without pay through June 30. Employees were directed to take at least two days of mandatory unpaid time off each month. A union representing state engineers sued, claiming the furloughs amounted to an illegal pay cut.