Source:
San Francisco Chronicle(08-18) 16:44 PDT SAN FRANCISCO -- The state Supreme Court allowed Gov. Arnold Schwarzenegger to resume unpaid furloughs of 144,000 state employees for three days a month, starting this Friday, while it reviews his authority to do so.
The justices on Wednesday suspended an Alameda County judge's order last week that blocked the furloughs. Superior Court Judge Steven Brick had said there were serious questions about the governor's power to cut employee workweeks on his own, and that the workers would suffer hardships from what amounts to a 15 percent pay cut.
The furloughs can now resume until the court decides the legality of Schwarzenegger's orders last year that sidelined 200,000 state employees for three days a month through this June. That case, which involves similar issues, is scheduled to be argued in San Francisco on Sept. 8, with a ruling due within 90 days.
If the court finds the furloughs illegal, the state could be ordered to repay the workers more than $1 billion.
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http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/18/BASD1F007B.DTL