CALIFORNIA:  California overtime covers out-of-state residents working in California

Nonexempt employees who work in California for a full day or a full week are covered by California overtime law, even if they reside in another state, ruled the California Supreme Court. The U.S. Ninth Circuit Court of Appeals came to the same conclusion in 2008, but later withdrew their opinion and asked the California Supreme Court to weigh in (Sullivan v. Oracle Corp., Cal, June 2011).

The employees in this case lived in Arizona and Colorado, but periodically were sent to California to train customers on how to use the company’s software. California has very strict rules on daily and weekly overtime, including the obligation to pay most nonexempt workers one and a half times the regular rate after eight hours in a day and twice the regular rate after twelve hours in a day.

Tips: If an out-of-state employee is in California for only part of a workday, you’re safe from worrying about California overtime rules. It’s when the employee spends the full workday or a full workweek in California that these overtime rules apply. For more information, see our Legal Guide, “Daily Overtime in Oregon and California” (4063).