California will soon pay state workers their raises from new union contracts. Here’s when

After months of waiting, California state employees represented by the largest state worker union will soon receive the raises they won after a fraught summer of contract bargaining.

Members of SEIU Local 1000 won what the union trumpeted as a “historic” contract — at least 3% annual raises for the next three years, as well as several adjustments ranging from 2.5% to 5% for close to 170 job classifications. Workers in several classifications with a starting wage below $20 an hour would also receive an additional 4% salary increase upon ratification of the deal.

Due to the state’s archaic and sluggish payroll system, the State Controller’s Office and CalHR often need several weeks — even months — to process the often intricate raise calculations and ensure that every employee receives the correct increases. Still, the state’s payroll system has a rocky history of implementing contract raises. The operating engineers’ union filed a grievance over late pay raises in 2017, and the union representing state attorneys threatened to sue for similar delays in 2019.

Workers represented by Local 1000 will see the raises reflected in their regular paychecks starting in January.

But, since the raises were effective starting July 1, the state owes workers retroactive pay. Starting Tuesday, the State Controller’s Office will issue separate checks with back pay — a financial boost just before the Christmas holiday and the start of a new year.

“Based upon each employee’s financial institution, it may take a couple of days for these retroactive pay amounts to post to accounts via direct deposit,” a spokesperson for the Controller’s Office said in an email Monday. For those who still receive paper checks, the Controller’s Office also started releasing those to agencies and departments Tuesday morning.

“Once the warrants are received, agencies/departments then follow a process for warrant intake and release to employees, which will vary by agency/department.”

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