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In A Win for Public Employers, CA Supreme Court Rules PAGA Penalties, Other California Wage & Hour Laws, Do Not Apply

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In August 2024, the California Supreme Court decided Stone v. Alameda Health System, which clarified that the meal and rest break requirements of the California Labor Code at sections 226.7 and 512 and other Labor Code provisions do not apply to public employers. The Court also held that the California Private Attorneys General Act (PAGA) penalty provisions do not apply to public employers. The decision also clarified that the definition of “municipal corporation” is broad for the purpose of determining what types of public entities are exempt from certain wage payment laws under section 220(b) of the California Labor Code.

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