Judge, state conflict over pay cut

July 15, 2009

California: In February of 2009 the Schwarzenegger administration and California Legislature approved a $2.00 per hour pay cut in the wages of in-home care workers for elderly and disabled Californians. The workers provide care for low income residents who meet certain criteria. The federal government provides half of the funding for the program.

Federal judge Claudia Wilken issued an injunction against the state's wage cut on June 26, 2009. She cited a federal law requiring that a study be performed prior to reducing costs in order to determine whether lowering payments to providers would deprive poor people of access to healthcare. Other federal judges have cited this law in reference to blocking reductions to doctors, dentists and pharmacies.

The Schwarzenegger administration has requested a stay of Wilkins order from the district's appellate court, the United States Court of Appeals for the 9th Circuit.