New payday
for state

Only UH avoids payroll
lag for state workers

By Craig Gima
Star-Bulletin

Today is payday for most state workers under the "payroll lag" that went into effect this pay period.

But because the state lost its appeal of a federal court preliminary injunction, members of the University of Hawaii Professional Assembly were paid yesterday and likely will get one more paycheck this calendar year than other state workers.

Other government worker unions did not challenge the payroll lag. Union officials said losing the savings from the payroll lag could have led to further state employee layoffs this year.

U.S. District Court Judge Alan Kay earlier this month issued a temporary order against implementation of the payroll lag for UHPA's 3,157 members.

The 9th U.S. Circuit Court of Appeals on Monday rejected the state's appeal of Kay's order.

The payroll lag was supposed to give the state a one-time, $51-million savings in the 1997-1998 fiscal year, which ended yesterday, by pushing one pay period into the new fiscal year.

It also changes the state's payroll system into an "after-the-fact" system.

State paychecks issued now include payment for the days needed to process the checks.

By shifting the pay period one day each paycheck until Sept. 20, state workers, at the end of the period, will be on a system where they are paid for actual days worked.

UHPA filed suit against the payroll lag saying it violated the faculty union's collective bargaining contract.

Gov. Ben Cayetano subsequently threatened to cut the University of Hawaii's budget by the estimated $7 million not saved because of UHPA's injunction against the payroll-lag plan.

But John Radcliffe, UHPA's acting executive director, said the governor does not have the authority to unilaterally cut the university's budget.