Ninth Circuit Asks Cal. Supreme Court to Rule on Wage and Hour and Unfair Competition Law Issues

A very interesting development involving both the Ninth Circuit and the California Supreme Court. On February 17, 2009, in Sullivan v. Oracle Corp., the Ninth Circuit asked the Supremes to decide the following issues:

First, does the California Labor Code apply to overtime work performed in California for a California-based employer by out-of-state plaintiffs in the circumstances of this case, such that overtime pay is required for work in excess of eight hours per day or in excess of forty hours per week?

Second, does § 17200 apply to the overtime work described in question one?

Third, does § 17200 apply to overtime work performed outside California for a California-based employer by out-of-state plaintiffs in the circumstances of this case if the employer failed to comply with the overtime provisions of the FLSA?

On April 22, the Supremes agreed to review the case.

This is a fascinating case. Questions one and two seem to be gimme's for the employees. California has an overwhelming interest in applying California law to work done in California, whether the emploee typically resides within or outside California.

Question three is more complicated. Does 17200 apply to extra-territorial acts? I have not researched the issue and don't know the answer, but I'm eager to see what the Court has to say.

Stay tuned. The Court's docket sheet is here.