US Appeals Court Revives Oracle California Labor Law Case
According to the news source, the court is basing its ruling on a state court decision that employers in California have to pay nonresident workers for overtime work performed within the state.
Reuters reported that the US Court of Appeals for the 9th Circuit reversed a federal district court ruling in favor of Oracle. Under the California wage and hour laws, the appellate court found, Oracle could be liable for unpaid wages if it did not compensate out-of-state computer trainers for overtime work they performed within the state.
Oracle employees who were residents of Arizona and Colorado had sued the company for not paying them overtime for work performed in California. The trial judge granted summary judgment in favor of Oracle, according to the news source.
As part of the appeal, the 9th Circuit asked the California Supreme Court to provide guidance as to whether the state's labor code applied to nonresident employees when they are performing work within the state.
According to the news source, the California high court ruled that it did apply, finding that not applying the state's law would be motivation for companies to substitute lower-paid temporary employees from other states.
"The 9th Circuit agreed with the Supreme Court's common sense analysis: If you're a business in California, you will have to comply with California's overtime laws. You can't treat people differently because they live in a different state," a lawyer for the employees told the news source.
The 9th Circuit sent the case back down to the district court for further proceedings following the judgment.
Business Insurance reported that this is the second time the 9th Circuit has ruled on the issue. A 2008 case was brought to the court regarding the same issue of out-of-state residents and California labor law.
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