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May 13 2010 9:30am EDT

Judge Blocks NY Furloughs

A ruling by the U.S. District Court for the Northern District of New York will block the furloughs of some 100,000 New York state employees.

Judge Lawrence Kahn granted a temporary restraining order which prevents Gov. David Paterson from proceeding with the planned furloughs of union workers beginning next week. Paterson proposed the furloughs until a new state budget is in place.

Kahn’s order prevents any furloughs from occurring before a hearing scheduled for May 26. It also temporarily bars Paterson from submitting any more emergency spending plans that include provisions authorizing furloughs.

In addition, the ruling orders Paterson to immediately allot the money to pay the 4 percent salary increase due all unionized workers as of April 1. Paterson had withheld the money, saying the added expense of more than $400 million of payroll would drive the state into insolvency.

Two powerful unions—Civil Service Employee Association and Public Employee Federation—took the matter to court.

More details on the court block of New York's employee furloughs are available from Business Review of Albany.


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