Colorado and Arizona Employees Working in California are Covered by California Overtime Laws

The California Supreme Court has found that the state’s overtime laws apply to out-of-state employees who perform work in California for a California employer. Sullivan v. Oracle, No. 06-56649 (June 30, 2011).

In this case a California-based company employed the three plaintiffs as instructors to train customers on how to use its software. Two of the plaintiffs were Colorado residents and the other was an Arizona resident. Each of the plaintiffs worked in the state in which they resided, as well as in California.

This decision is important for California-based employers, since the court found that Colorado and Arizona employees must be paid in accordance with California overtime laws for full days of work performed within California. The impact of the decision with regard to partial days worked or on employees or employers in other states remains to be seen.