New California Overtime Pay Laws for Out-of-State Employees
In California, there are many workers that are not residents of the state. This has led to some unfair practices concerning the overtime compensation of out-of-state employees. Workers that come from outside of California should know their legal rights to overtime compensation. A recent California Supreme Court Case: Sullivan v. Oracle, addresses the rights of out-of-state-employees performing work in California for California-based employers.
In Sullivan v. Oracle, the California Supreme Court ruled in the favor of hard working employees. Employers must now properly compensate workers by following the regulations of California state law, federal overtime laws, and the laws set in the state where the employees resides. The result of this ruling will require all California-based national employers to develop new pay methods, so any out-of-state company time logged by a non-exempt employee in California can be adjusted appropriately.
If an employer fails or ignores these new compensation procedures for their traveling employees, they risk suffering the penalties stated in California’s Unfair Competition Law (UCL). Such penalties include a fine of up to $2500 and payment of damages that covers the amount of unpaid overtime. If you find yourself a victim of unfair wage payment practices for work done in California, you should contact us immediately. We can help you receive the compensation you deserve, as a result of the new ruling on California overtime pay laws. For details of this groundbreaking California Supreme Court case, read the summary below:
Case Overview – Sullivan vs. Oracle
Oracle, a California-based software company, employed several out-of-state employees that traveled across the country tutoring clients on their software applications. These tutors were given the title of “Teachers”. Oracle classified the teachers as exempt employees and did not pay them overtime under California and federal law. The “Teachers” argued that they were not correctly classified and should be entitled to overtime pay for the work they conducted while in California. Oracle responded to the claims, by disputing that the teachers should receive additional compensation for the time they worked in California, because those employees legally resided, and paid taxes in other states. However, despite these arguments, the California Supreme Court favored the employees. The court ruled that state overtime laws made no distinction between residents and non-residents, and any employee working in the state of California, for a full day or week, is required to be properly compensated under California overtime pay laws.