A federal judge last week ruled that California acted illegally when it paid state employees with IOUs during a lengthy budget impasse last summer.

Judge Garland Burrell Jr. of the U.S. District Court of Sacramento said the state violated the Federal Fair Labor Standards Act, which established minimum wages and overtime pay for employees during the Depression.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.