The California State Compensation Insurance Fund’s chief executive has dropped plans for $250 bonuses to 7,900 employees after another agency threatened to sue.
Jan Frank is stepping down Friday as president of the quasi-public State Compensation Insurance Fund.
She promised the nearly $2 million in bonuses in July as the Schwarzenegger administration tried to furlough the workers, and other state employees, three days each month. Judges have since ruled Frank’s employees are exempt from the cutbacks.
She was a defendant in the lawsuits but testified on her employees’ behalf.
Frank said in an e-mail to employees Friday that she can’t give the bonuses because the Department of Personnel Administration threatened to sue and seek reimbursement from each employee who received the bonus.
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