A California judge issued a temporary restraining order on Monday, stopping the Governor from instituting furloughs for around 150,000 state workers. While the Governor said that the furloughs were necessary to preserve cash, the judge agreed with the unions' argument that the furloughs would constitute undue hardships for workers. The furloughs would equal about a14% pay cut. A spokesman for the Governor said that furloughs were within the Governor's power and they would immediately appeal.
See "Judge blocks Schwarzenegger from implementing furloughs", Shane Goldmacher, Los Angeles Times, August 9, 2010