The Governator is slashing salaries for 200,000+ state workers to federal minimum wage. Interestingly, the state doesn't have to pay the California minimum wage of $8.00, but can go directly to the federal rate of $6.55; there is something wrong with that. The state is in the midst of a budget standoff, and this is (surely) intended to force the legislature to pass the budget the Governor wants. I'm certain that the California legislature will do the right thing and raise taxes so that even more businesses will flee the state.
I am no fan of minimum wage laws, but forcing state employees to live on federal minimum wage might be an educational opportunity; as one commenter says "after my rent, that would leave only $218 left." My money is on the budget being completed fairly quickly.