When everybody votes for a pause, in essence, the deadline for the current phase is simply set to infinity. The game will remain paused until everybody has finalized their orders for that phase, at which point the orders will be processed, the game will move to the next phase and continue as normal.
I only figured this out myself through some trial and error; my earlier thoughts on it can be found here:
threadID=495364It used to be that everybody had to vote for a pause, which would freeze the deadline clock until everybody voted for an unpause, which would resume the clock (with the same amount of time before the deadline as before the pause).
One thing that I think is missing is any sort of indication in the game screen that the game is paused, but when the pause occurs, a message to that effect will show up under Notices (on your Home page).