California Overtime Requirements Apply To Work Performed By Non-Resident Employees

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Sullivan v. Oracle Corp., 2011 WL 6156942 (9th Cir. 2011)

Three Oracle instructors (all non-residents of California) filed this class action to recover allegedly unpaid overtime under California law for work they performed while in California. Two of the instructors were residents of Colorado and one was a resident of Arizona; all of them worked in their home states and, from time to time, in California. The district court granted Oracle’s motion for summary judgment, but the Ninth Circuit reversed in part, holding that the California overtime requirements (which are stricter than the overtime requirements of Arizona and Colorado) apply to work performed in California by residents of other states. The Court of Appeals affirmed dismissal of the claim made by two of the plaintiffs who asserted a violation of California’s Unfair Competition Law (Bus. & Prof. Code § 17200) for alleged violations of the federal Fair Labor Standards Act outside California on the ground that Section 17200 does not have extraterritorial application. (The Ninth Circuit cited and adopted the California Supreme Court’s determination of these legal issues in Sullivan v. Oracle Corp., 51 Cal. 4th 1191 (2011).)

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