State workers got a smaller pay cut than planned this week due to payroll mistake
California state workers saw pay cuts in their checks this week, but the reduction wasn’t quite as big as it was supposed to be.
That’s because the California State Controller’s Office, working on a tight turnaround, made a mistake in calculating workers’ retirement contributions, the office told employees Thursday.
The mistake affected everyone who was subject to the personal leave program Gov. Gavin Newsom and the state Legislature used to reduce state workers’ pay, Controller’s Office spokeswoman Jennifer Hanson said in an email.
Most affected workers received up to $100 more than they should have as a result. For more than half of those affected, the overpayment was less than $50, Hanson said.
The office plans to correct for the mistake in August’s paychecks.
The state reduced workers’ base pay by up to 9.23% under the leave program, which was instituted to save the state money as part of its solution to a projected $54 billion budget deficit. The reduction in take-home pay was less than 9.23% for all workers, since the state suspended the contributions they normally make to their retirement health care. The amount of the health care payment varies across worker groups.
The program gives workers two flexible days off in exchange for the reduction, which amounts to less than they would make in two days of work.
State worker unions each negotiated different terms in unique agreements that all include the leave program. Unions finalized the agreements in a rush between mid-June and July 1, the deadline set by Newsom and the Legislature.
“It took a tremendous amount of work to implement all of the pay changes in the short window of time available,” Controller’s Office spokeswoman Jennifer Hanson said in an email. “I am glad the minor miscalculation went in workers’ favor so nobody was out of pocket any additional funds in these challenging times.”
The office uses a decades-old payroll system that adds extra challenges for any payroll changes.
This story was originally published July 31, 2020 at 11:31 AM with the headline "State workers got a smaller pay cut than planned this week due to payroll mistake."