Wednesday, November 26, 2008

California Overtime Law Applies to Non-Resident Employees Too

In a recent decision by the Ninth Circuit of the United States Court of Appeals, the Court has the occasion to decide whether non-residents working intermittently within the State of California are covered by the California Wage Laws.

The non-residents individuals here were instructors who go from state to state, giving trainings to customers of the Oracle software as regards their use. They performed work in California from five to thirty days every year. They were not paid overtime.

The plaintiff thus filed suit against their employer for overtime claims. They alleged that they were wrongfully classified as exempt employees and weren’t paid the overtime – either daily and/or weekly.

When the case reached the Court of Appeals, the Court sustained the plaintiffs. It ultimately concluded that during the days the instructors were in California, the California Wage Laws, including the requirement of payment of overtime, must be applied to them. Therefore, the non-resident employees are entitled and must be paid overtime.

Overtime law mandates that employees who are not otherwise included in the list above, 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, are entitled to overtime pay.

Meaning, they shall not be required to work beyond 8 hours in any workday or beyond 40 hours in any workweek unless they receive one and one-half times their regular rate of pay for all hours worked over eight hours in any workday and over forty hours in the workweek.