California clarifies overtime law pertaining to out-of-state workers
The California Supreme Court recently ruled that out-of-state employees on the payroll of California-based companies are protected by the state's overtime laws during business trips to the Golden State.
The decision was made in response to a class action law suit against Oracle Corporation by its out-of-state workers. The employees contended that while they were in California on business, they were entitled to benefit from a state law requiring overtime to be paid for working more than eight hours in a single day.
"Previously most employers in California believed that a non-California resident was not subject to California employment laws, even if that person came into the state for a brief period of time," explained lawyer Robert S. Span - who represented the airline, hotel and restaurant industries in the case - as quoted by the Los Angeles Times
In a ruling based on the Fair Labor Standards Act, the court also ruled that employees of California companies cannot collect overtime for work they perform in other states.
The decision was made in response to a class action law suit against Oracle Corporation by its out-of-state workers. The employees contended that while they were in California on business, they were entitled to benefit from a state law requiring overtime to be paid for working more than eight hours in a single day.
"Previously most employers in California believed that a non-California resident was not subject to California employment laws, even if that person came into the state for a brief period of time," explained lawyer Robert S. Span - who represented the airline, hotel and restaurant industries in the case - as quoted by the Los Angeles Times
In a ruling based on the Fair Labor Standards Act, the court also ruled that employees of California companies cannot collect overtime for work they perform in other states.
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