In Sullivan v. Oracle, 11 C.D.O.S. 8243, the California Supreme Court resolved a hotly contested question about the reach of California’s overtime wage law. The court held that the overtime law applies to nonresident employees of a California-based employer who perform at least a full day’s work in California. This unanimous decision also has important implications for employers based in other states that send employees into California to work for a full day or more. These employers should expect their employees to argue, based on Sullivan, that they too are covered by California’s overtime wage laws.
In Sullivan, the Ninth Circuit U.S. Court of Appeals asked the California Supreme Court to decide whether California’s overtime laws applied to three nonresident employees of Oracle Corp., which is based in California. The employees were residents of either Colorado or Arizona, and had worked in California for varying periods during 2001 to 2004. The Supreme Court held that the relevant provisions of the California Labor Code unambiguously apply to “any employee” without regard to residency status. The court also observed that although the Legislature has exempted nonresident employees from other Labor Code provisions, it did not do so in the overtime laws.
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