Does your organization have any nonexempt workers who travel? If so, a recent California court case could impact how they’re paid overtime, no matter what state the employees work in the most.

A company headquartered in California had several employees based in other locations. Three of those employees sued, claiming they were owed overtime based on California state law.

California OT law differs from the federal rules in that employees earn:

• time and a half for any time they work beyond eight hours in a day or for time spent working a seventh consecutive day, and
• double their regular pay for any time beyond 12 hours in a day or after eight hours on the seventh consecutive day of work.

The three nonexempt employees worked in locations outside the state, but traveled to California anywhere from five to 36 days each year. During that time, they claimed, they should’ve been paid OT in accordance with California’s strict standards.

The court agreed. Work performed in California is subject to that state’s rules and regs, regardless of where the employees live or normally work.

Cite: Sullivan v. Oracle Corp.

Tags: California, overtime, state laws