A California Superior Court judge has ruled that Gov. Arnold Schwarzenegger illegally furloughed 7,400 employees of the State Compensation Insurance Fund this year, entitling them to back pay plus interest for the days they missed work.

Arnold Schwarzenegger

Superior Court Judge Charlotte Woolard affirmed a prior ruling against the state involving the employees for the “State Fund,” which sells workers’ compensation insurance to employers and uses the proceeds to operate, according to the San Francisco Chronicle. The State Fund relies on no funding from the state treasury.

Woolard’s ruling came in a suit by the Service Employees International Union, which represents the funds’ nearly 6,300 workers. The judge also granted the fund’s request to extend the ruling to 1,100 additional noon-union employees.

California’s insurance code exempts State Fund workers from furloughs and hiring freezes according to the union, an argument Woolard agreed with, viewing the furloughs as “staff cutbacks,” according to the report.

The victory for State Fund workers could pave the way to additional appeals for state employees also furloughed as the state seeks to close a $24 billion shortfall.

A spokesman for Schwarzenegger’s office said the governor plans on appealing the decision.