Legal Alert: The Ninth Circuit Confirms California Overtime Laws Apply To Nonresidents

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On December 13, 2011, the Ninth Circuit issued its second opinion in the Sullivan v. Oracle Corporation case and confirmed that nonresident employees are subject to California's overtime laws when they perform work in California. This is a significant ruling for employers with nationwide operations because employers are required to comply with California labor laws even if those employees only work temporarily in California.

Defendant Oracle Corporation ("Oracle") is a large software company that employs instructors to train its clients how to use its software. Oracle's headquarters and principal place of business are located in California but it services clients throughout the United States.

Plaintiffs Donald Sullivan, Deanna Evich, and Richard Burkow are former Oracle employees who were required to travel to destinations away from their city of domicile for the purpose of performing software training for Oracle's clients. During the relevant time period, Sullivan and Evich resided in Colorado, and Burkow resided in Arizona. Oracle classified the plaintiffs as "instructors" who were exempt from the overtime provisions of California's Labor Code when they performed work in California.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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