On August 15, 2024, the California Supreme Court issued a momentous unanimous decision in Stone v. Alameda Health System (“Stone”), concluding that public employers are exempt from various Labor Code provisions and PAGA penalties.
Stone’s Procedural History
The former employee-plaintiffs in Stone worked at a hospital operated by Alameda Health System (AHS). AHS had been authorized by the county Board of Supervisors and Legislature to operate as a separate public agency, strictly and exclusively dedicated to managing the county’s public health facilities.