Baker Hostetler’s Employment and Labor Group issued an Executive Alert today on the Ninth Circuit Court of Appeals’ wage and hour decision in Sullivan et al. v. Oracle Corporation, (case no. 06-56649), where the court found that California state overtime rules apply to non-residents who perform work in California. The group has this to say about the potential impacts of the decision on employers:
- If an employee performs work in California, the overtime provisions of the California Labor Code apply to that employee, regardless of the employee’s state of domicile.
- In light of this holding, it is likely that a non-resident employee who works in California is also subject to the California Labor Code regarding meal periods, rest periods, leave, termination, vacation pay and all other employment matters.