Supreme Court holds that a municipal takeover agreement cannot exclude automatic application of Labor Code Art. 23 § 1 to administrative staff.

The Supreme Court quashed the lower court's dismissal of Anna L.'s claim to reinstatement after a municipal takeover of schools. The court found that the takeover agreement between the municipality and the education authority could not override the automatic transfer of administrative and financial staff under Labor Code Art. 23 § 1. Consequently, the court ruled that the municipality automatically assumed employment relations with these employees regardless of the private agreement between the transferring and receiving entities.