Re "Governor's threat triggers concessions" (Editorial, June 24): Helping the governor leverage labor contracts is not the controller's job. My job is protecting the state's pocketbook. Reducing state salaries to the federal minimum wage will do nothing to solve the budget deficit. But it will cost California billions of dollars in penalties and damages for violating the federal Fair Labor Standards Act and the California Constitution.

Two examples: First, retirement contributions are constitutionally protected and must be paid in full and on time as if employees were receiving their full wages. Because employer and employee contributions are calculated as a percentage of the employee's gross pay for the month, those contributions will be underpaid. Second, the FLSA states an employee who works even one hour of overtime during a pay cycle is entitled to full pay. California workers are paid in advance of the end of the pay period, so it is impossible to determine who worked overtime and is entitled to their full wages.

The governor is exposing the state to massive liquidated damages that taxpayers will pay for long after he is out of office. This can be avoided by the governor and Legislature quickly enacting a solid, honest budget.

That's their job. I'm doing mine.

– John Chiang, Sacramento, state controller