CALIFORNIA — The California Supreme Court on Thursday significantly restricted the application of a key worker protection law, narrowing the rights of public employees to seek enforcement under state labor regulations.
In a unanimous decision, the court ruled that employees of Alameda Health System (AHS), a network of public hospitals in Alameda County, are not entitled to the same protections as private-sector workers under state labor laws.
The ruling clarified that laws requiring meal and rest breaks and the Private Attorneys General Act (PAGA)—which permits employees to collectively sue employers for labor violations—do not extend to state or local government employees.
The decision drew mixed reactions. Ryan McGinley-Stempel, representing AHS, hailed the ruling as a safeguard for public agencies, ensuring they are not burdened with statutory penalties and fees that could hinder their ability to provide essential services.
Conversely, Ari Stiller of the California Employment Lawyers Association criticized the decision, stating that it excludes public employees from enforcing labor rights under PAGA, a law he described as one of California’s most crucial tools for upholding labor standards.
The case arose after complaints from a nurse and medical assistant at Highland Hospital in Oakland, who alleged that AHS workers were denied meal and rest breaks and penalized for taking them. Although a lower court allowed their lawsuit to proceed, the state Supreme Court reversed that decision, emphasizing that AHS operates as a public agency.
Writing for the court, Justice Carol Corrigan noted that allowing PAGA claims against public employers would effectively redirect taxpayer funds from one public institution to another, undermining the law’s intent to protect the state from financial harm.
The ruling leaves the door open for the state Legislature to introduce new legislation if they disagree with the court’s interpretation.
