Labor Code Applies to Nonresidents Working in State for Cal. Employers

October 13, 2011 by Beeson Tayer & Bodine

The California Supreme Court has issued a decision clarifying the application of California’s wage and hour laws to out-of-state employees working in California.

In Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191, the Court addressed the state overtime claim filed by several nonresidents employed by Oracle, a California -based company, who were required to travel to California as part of their jobs. The Court ruled in favor of the employees concluding the state Labor Code applies to out-of-state employees who work in state an entire day, or in excess of 40 hours in a week, for a California-based employer. The Court reasoned that nothing in the Labor Code indicated the state legislature did not intend to create exceptions to the law for nonresidents working in California for state -based firms.

The Court expressly limitied its holding to “Californiabased employers,” leaving open the question of whether overtime laws apply to out-of -state employees working in California for a non-California -based employer.

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