Sullivan and two other employees who worked either daily or weekly overtime for Oracle in California while living in another state filed suit in a California state court seeking overtime pay. The case was removed to U.S. District Court for the Central District of California. The court found in favor of Oracle, and Sullivan appealed.
The U.S. Court of Appeals for the 9th Circuit ruled that Sullivan and other out-of-state residents who worked in California were entitled to overtime pay under the FLSA and state law because California intended to apply its labor code to out-of-state residents working in the state.
The court held that "California’s employment laws govern all work performed in the state, regardless of the residence or domicile of the worker." The court also stated: "[W]e fail to see any interest Colorado or Arizona have in ensuring that their residents are paid less when working in California than California residents who perform the same work."
The 9th Circuit held that the company’s failure to pay overtime violated California unfair-competition law, but that it "does not apply to the claims of nonresidents of California who allege violations of the FLSA outside California." Sullivan v. Oracle Corp., 9th Cir., No. 06-56649 (11/6/08).
Impact: Overtime pay required by California law applies to California residents and residents of Colorado and Arizona.December 2008 -- Register Now!