Overtime Laws In California: Supreme Court Rules For Non-resident Employees in Sullivan v Oracle

For your reference, here’s what leading law firms are telling us about California overtime rules based on the June 30, 2011, Supreme Court ruling in the Sullivan v Oracle wage-hour lawsuit: 

Sullivan v. Oracle Corporation: Non-Residents Who Perform Work in California Are Governed By California Wage Hour Laws – Including Daily Overtime Rules (International Lawyers Network):

“In a much-anticipated decision, the California Supreme Court has expanded the scope of California’s complex wage-hour laws to non-resident employees who perform work in California. While the decision leaves more than a few questions unanswered, it will require a great many employers to review their overtime and other payroll practices. Perhaps just as importantly, it will likely open the door to lawsuits, including class actions, regarding prior overtime and payroll practices.” Read more»

California’s Overtime Laws Apply to Nonresident Employees (Davis Wright Tremaine LLP):

“Employers who have employees temporarily working on assignments in California are now at risk if those employees are not paid in accordance with California overtime laws. In Sullivan v. Oracle Corporation, the California Supreme Court issued a unanimous decision on June 30, 2011, holding that California’s overtime laws apply to work performed in California, even if it is brief and intermittent, by employees who are not residents of California and are based elsewhere.” Read more»

California Supreme Court Applies State Law Overtime Rules To Nonresident Employees (Bryan Cave):

“… issued an opinion unanimously holding that California based businesses must pay out of state workers overtime in accordance with California law for work performed in the state. The court also found that the failure to pay legally required overtime to these nonresident employees constitutes an “unlawful…business act or practice” for purposes of California’s Unfair Competition Law (“UCL”).” Read more»

Welcome to California: The Captain has Turned on the Overtime Sign (Eli Kantor and Zachary Cantor):

“The California Supreme Court’s decision … shot a tremor down the halls of companies sending employees to work in California. The ramifications for wage-and-hour law that may stem from this decision will have a significant impact on any industry doing business in California. And particularly thorny questions arise for the airline and hospitality industries.” Read more»

STAY HOME! Non-Residents Entitled to California Overtime Protection While There, California Supreme Court Rules (Constangy, Brooks & Smith, LLP):

“While California is mired in a $25 billion budget deficit, and companies are leaving for greener, business-friendlier pastures like Arizona, Texas, Georgia and North Carolina, the California Supreme Court is doing its best to pile on the regulatory burdens that hurt this state’s ability to compete on a national and global scale.” Read more»

Sullivan v. Oracle: Non-California Residents Working in California for California-Based Employers Are Subject to California Daily Overtime Requirements (Morgan Lewis):

“In an opinion with significant implications for California-based employers, and potentially for non–California-based employers, the California Supreme Court has ruled that the daily and weekly overtime requirements of the California Labor Code apply to work performed in California for California-based employers by nonresident employees.” Read more»

Fenwick Employment Brief Special Bulletin – July 7, 2011: California Employers Must Comply With State Overtime Rules With Non-Residents Directed To Work Within California (Fenwick & West LLP):

“In a disappointing result for employers with potentially far-reaching consequences, the California Supreme Court ruled in Sullivan v. Oracle Corporation that California employers must apply state overtime rules to out-of-state employees who perform work within California.” Read more»

California Supreme Court Extends Overtime Laws to Out-Of-State Employees Working in California (Wilson Sonsini Goodrich & Rosati):

“The California Supreme Court recently issued a decision with significant implications for employers that have nonresident employees performing work in California on a routine or sporadic basis. In Sullivan v. Oracle, the court unanimously held that when an employee crosses into California, even temporarily, the employer must comply with California overtime laws in addition to federal law and the law of the state where the employee is actually “employed” or resides.” Read more»

California Supreme Court Expands Reach Of State Overtime Laws (Fisher & Phillips LLP):

“…That means that employees residing in states outside California but working (even occasionally) in California may bring lawsuits against their California employers for unfair competition based on violations of California’s generous overtime requirements. This is not good news for employers.” Read more»

Do California State Overtime Laws Apply to Visiting Workers? (Franczek Radelet P.C.):

“Do you have employees who visit California for business? If so, now may be a good time to brush up on California wage and hour law. On June 30, 2011, the California Supreme Court ruled that the California Labor Code’s overtime provisions applied to three non-resident employees of Oracle Corporation who performed work within the state.” Read more»

New Case on Rules Governing Application of California Overtime Law to Non-California Residents (Sheppard Mullin Richter & Hampton LLP):

“…The two claims at issue were claims for overtime arising (1) whether non-California resident Instructors who came to work in California for at least a full day or full week needed to be paid overtime under California rules governing daily and weekly overtime; and (2) whether Instructors who worked entirely outside California and were denied overtime under Fair Labor Standards Act (“FLSA”) rules could recover FLSA overtime under the California Unfair Competition Law (“UCL”), Bus. & Prof. Code, § 17200 et seq.” Read more»


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