Monday, November 24, 2008

Non-Resident Employees are also Covered by California Wage Laws

The case of Sullivan v. Oracle Corporation and Oracle University, filed on 6 November 2008 and decided by the United States Court of Appeals, resolved that non-residents of California are under the coverage of the California Labor Laws for works performed within the state.

In this case, it appears that the plaintiffs were instructors who go to different states to train customers on the use of Oracle software. In California, the plaintiffs worked between nearly five and 30 days per year – the rest they work on other states.

On their complaint for overtime claims, among others, the instructors alleged that the respondent, Oracle, misclassified them into exempt employees and failed to pay them overtime, daily and/or weekly.

The Court said that the California wage and hour laws, including payment of overtime, apply to the plaintiffs during the days they worked in the state.

In California, overtime law mandates that employees who are not otherwise included in the list above, 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, are entitled to overtime pay.

Meaning, they shall not be required to work beyond 8 hours in any workday or beyond 40 hours in any workweek unless they receive one and one-half times their regular rate of pay for all hours worked over eight hours in any workday and over forty hours in the workweek.