California Overtime Law Covers Some Out of State Workers

Three non-resident Oracle employees who did some work for the company in California sued as a class action alleging they were owed overtime. Oracle argued that the workers were exempt from overtime, and were not owed premium pay for overtime worked under federal or California law.

The workers alleged their first two claims based upon work performed in California, and the third was based on work performed elsewhere in the United States.

The district court granted summary judgment against the Plaintiffs, because the work was largely performed in other states by workers who didn’t live in California. On appeal from the United States District Court for the Central District of California to the Ninth Circuit Court of Appeals, summary judgment on the claims for work performed in California was reversed. In an opinion filed December 13, 2011, Judge William A. Fletcher wrote that the workers were owed overtime pay on work performed in California, despite the fact that the workers weren’t residents. They ruled that the company had so much contact with the state, (its headquarters were located in California) that the application of its laws wasn’t unfair. Sullivan v. Oracle Corp. (9th Dir. 06-56649 12/13/11)

2017-03-02T23:51:48+00:00 April 15th, 2013|Wage and Hour|