Raises missing from some California state worker paychecks as new contracts take effect

Some California state workers are reporting that they did not receive expected salary increases this month, frustrating public employees who were looking forward to their first full paychecks since Gov. Gavin Newsom and the Legislature demanded wage reductions from them a year ago.

The issue appears to be affecting workers represented by Professional Engineers in California Government, a union representing about 12,000 engineers at Caltrans and other departments.

Ted Toppin, executive director for that union, said some departments failed to key in employee longevity pay increases before the State Controller ran July payroll.

“Now it is unfortunate, but something that we’ve grown accustomed to,” Toppin said.

The State Controller’s Office manages state government’s payroll through an antiquated system that dates to the 1970s. The office since 2016 has been developing a plan to replace it. A previous effort to replace the system folded in 2013 when then-Controller John Chiang canceled a $90 million contract because of glitches that surfaced during tests.

All state employees had wage adjustments in July, when temporary pay reductions lifted across the state workforce.

Many employees also received raises, including workers represented by PECG. Employees it represents received a 5.5% salary increase as negotiated with the state that went into effect July 1.

Amy Palmer, deputy secretary of communications for the California Government Operations Agency, said “We have been made are aware that pay items for some employees in engineer classifications did not make July payroll, and those items are being corrected.”

Toppin said that there is “no sense in pointing fingers,” but that the problem with the employee pay is a sign of how old the state’s payroll system is.

“If it were a modern system, these things would be done more efficiently,” he said.

This story was originally published August 5, 2021 at 1:32 PM with the headline "Raises missing from some California state worker paychecks as new contracts take effect."