California Supreme Court Rules Employers Must Pay Nonresident Workers Overtime

12:25 pm Uncategorized

gavel 2 e1304024638853 California Supreme Court Rules Employers Must Pay Nonresident Workers OvertimeThe California Supreme Court handed down its decision in Sullivan v. Oracle Corporation yesterday, ruling that California-based employers must pay out-of-state workers overtime for work performed in the state.

In ruling against Oracle, the court said the company could be found liable for violating California’s wage and hour laws for failing to pay its out-of-state computer trainers for overtime work performed by them in California.

Oracle trainers from Arizona and Colorado had sued the firm for not paying them overtime when they worked in excess of eight hours per day or 40 hours per week in training California customers on how to use Oracle software.  Unlike most states, California calculates overtime on a daily rather than a weekly basis.

In a unanimous decision, the Court found that, “To permit nonresidents to work in California without the protection of our overtime law would completely sacrifice, as to those employees, the state’s important public policy goals of protecting health and safety and preventing the evils associated with overwork.”

Our Orange County business planning law firm takes protecting your business very seriously.  We can help you structure your company and operations policies to ensure you are in compliance with California’s employment laws.  Contact us for more information.

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