Sullivan v. Oracle Corporation

The California Labor Code and California Unfair Competition Law apply to overtime work performed in California by nonresidents.

Oracle corporation employed "Instructors" who trained customers how to use Oracle software through a subsidiary, Oracle Corporation Canada. Plaintiffs are three former Oracle Instructors who brought the following claims against Oracle: first, Plaintiffs allege that Oracle failed to pay overtime for work performed in California to Instructors domiciled in other states who worked complete days in California; second, Plaintiffs allege a violation of California's Unfair Competition Law; and third, two Plaintiffs allege an altered claim in violation of California's Unfair Competition Law. The district court granted summary judgment to Oracle on all three claims holding the California Labor Code, per claims one and two, does not apply to nonresidents who work primarily in other states. Additionally, the district court held the California Unfair Competition Law does not apply to work performed outside California for which payment was less than that required by the FLSA. The Ninth Circuit reversed the district court's grant of summary judgment to Oracle on Plaintiffs' first two claims, holding the Labor Code and California's Unfair Competition Law applies to overtime work that Plaintiffs performed in California, and affirmed summary judgment to Oracle on Plaintiffs' third claim. REVERSED in part, AFFIRMED in part, and REMANDED for further proceedings to Plaintiffs-Appellants.