California Supreme Court Rules Public Employers Are Exempt from PAGA
The California Supreme Court has ruled that public employers are not subject to civil penalties under the state’s Private Attorneys General Act of 2004 (PAGA) . In a pivotal decision, the court held that public entities, including public health authorities, are exempt from certain state labor rules on meal and rest breaks and, more broadly, from PAGA penalties . This ruling underscores the legal distinctions between public and private employers under California law. This article explains what the ruling means for both public and private employers and gives four practical tips to stay compliant. What Happened? In Stone v. Alameda Health System , health care workers at Alameda Health System (AHS), a public hospital authority created by Alameda County, filed a class action alleging wage and hour violations under the California Labor Code and seeking penalties under PAGA. Trial judge sided with the AHS. At trial, the AHS argued it was a public entity not subject to liabil...