On August 30, 2024, the California Supreme Court considered the question of whether plaintiffs could recover PAGA penalties against public entities in a case called Stone v. Alameda Health System (“AHS”).
This question had previously been addressed in a court of appeal case called Sargent v. Board of Trustees of California State University (2021) 61 Cal.App.5th 658. In Sargent, the court held that PAGA penalties could be collected against public entities if the underlying Labor Code section provided for a specific penalty (as opposed to the default penalties under Labor Code section 2699(a)).
The Supreme Court concluded, contrary to Sargent, that public entity employers are not subject to PAGA suits for civil penalties for the following reasons:
- The Labor Code’s definition of “employers” did not include public entities; and
- PAGA exempts public entity employers from penalties for violations of Labor Code provisions carrying their own specific penalties.
Continue reading “PAGA and Public Entities: The End of an Era”
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