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The federal Ninth Circuit Court of Appeal has now held “that California’s Labor Code applies to work performed in California by non-residents of California”, in a case involving “Instructors” employed by Oracle Corporation to conduct software training at various field locations.  In an earlier round of litigation, the employer backed off its prior practice of classifying the trainers under California law as “teachers” who were exempt from payment of overtime wages.  The Ninth Circuit decision now goes a step further and upholds claims that out-of-state training employees (here, from Colorado and Arizona) are subject to the California labor laws on the days when their fieldwork takes them to California, including specifically the payment of California overtime (for work in excess of 8 hours per given day), rather than their own-state and backdrop federal overtime requirement (work in excess of 40 hours per week).  The court found that California has a strong interest in applying its labor laws to work performed within state borders, regardless of an employee’s home state laws, and further found that California’s unfair practices (BPC 17200) laws also apply but only as to the California claims, for which a class action is allowed to proceed.  Sullivan v. Oracle Corp. and Oracle University, Ninth Circuit No. 06-56649, November 6, 2008.

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