California labor laws apply to nonresidents who perform work in the state, court rules

If your organization sends employees into California to do work, take note of an important new 9th Circuit ruling: It says the California labor code—and all of its complicated, pro-employee provisions—also applies to non-California residents who perform work in the state, even if that work is on a temporary basis.

California is well-known for its employee-favored labor laws, including daily overtime (after eight hours), mandated meal/rest breaks and tighter standards for determining overtime exemption status.

In this case, the court said Oracle, a California-based company, must pay out-of-state workers based on California law if they work overtime in California. (Sullivan v. Oracle Corp., No. 06-56649, 9th Cir., 11/6/08)