The California Supreme Court has held that the overtime provisions of the California Labor Code apply to nonresident employees who work temporarily in California for a California-based employer. 

Plaintiffs in the case, Sullivan v. Oracle Corp., were trainers for Oracle’s customers in the use of the company’s products. They resided in states other than California but from time to time worked in California as well as other states. Plaintiffs claimed overtime compensation for days longer than eight hours and weeks longer than 40 hours worked entirely in California.

This ruling, filed on June 30, 2011, is fairly precise. The nonresident nonexempt employees must be employed by a California-based employer and the hours worked that would require overtime must all be worked in California. California requires that nonexempt employees be paid overtime for hours worked beyond 40 in any one workweek and beyond eight in any workday.

Ballard Spahr’s labor attorneys regularly provide advice and counseling in labor and employment law and compliance. If you have concerns about California overtime provisions or about other labor matters, please feel free to contact any member of the Labor and Employment Group.

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