In Stone v. Alameda Health System, the California Supreme Court clarified that public employers are generally exempt from Labor Code provisions and PAGA penalties, highlighting the Legislature's intent.
The Court ruled that public agencies, like Alameda Health System, cannot be held liable under Labor Code for various wage and hour violations unless specifically stated otherwise in the law.
The decision emphasizes that the Labor Code's provisions predominantly target private-sector employees, reinforcing the legislative intent to shield public employers from specific penalties.
The unanimous ruling by the California Supreme Court signifies a crucial legal distinction between public and private sectors regarding labor-related civil liabilities.
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