Lawsuit Follows Gov. Schwarzenegger Moves

Gov. Arnold Schwarzenegger's move to eliminate state jobs and slash the pay of many workers was met with a lawsuit on Friday.

California's biggest state employees union filed a lawsuit in Sacramento County Superior Court to block the part of the executive order forcing layoffs for 10,300 seasonal, contract and part-time workers. Employee unions have also filed unfair labor practice allegations against a provision temporarily trimming the pay of up to 200,000 state employees to the federal minimum wage of $6.55 an hour. Those workers would be reimbursed at the time a budget is approved.

Schwarzenegger said the layoffs and pay cuts were designed to avoid a fiscal crisis as the state remains without an approved spending plan.

California is the only state with a fiscal year starting July 1 to be without a budget.

Gov. to Cut Pay of More than 200,000 Workers

Gov. Arnold Schwarzenegger reportedly plans next week to slash the pay of more than 200,000 state workers to the federal minimum of $6.55 per hour in a move he hopes will lessen the state's budget crisis.

The governor is also reportedly slated to end overtime pay for all but critical services, place a freeze on state hiring, and call for the immediate layoff of nearly 22,000 temporary, seasonal and student workers.

The layoffs could be done immediately, but the pay cuts would likely not be effective until later next month.

California faces a projected $17.2 billion budget deficit for the fiscal year that commenced July 1, and has not yet approved a budget.

Sign of the Times? Layoffs Hit San Diego Casino

Officials at Pechanga Resort and Casino in the San Diego area say they will layoff approximately 400 employees in the near future.

The Temecula casino, which employs around 4,800 people, will mark the first time in the company's 13-year history that it will let people go.

With a tightened economy, attendance at a number of casinos has reportedly declined in recent months.