Public agencies scored a significant win last week when the California Court of Appeal held that most of the state's wage and hour laws do not apply to public employers. Public employers have increasingly found themselves involved in litigation regarding whether California's wage and hour laws are applicable to them. This class action lawsuit alleged that the Arvin-Edison Water Storage District was required to provide its employees with daily overtime and meal periods in accordance with California's Labor Code and Wage Orders. Further, the lawsuit alleged that the District did not qualify as a "municipal corporation" within the meaning of Labor Code section 220 and, therefore, was required to immediately pay final wages upon an employee's termination.
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