The California labor laws covering all employees who reside and work in the state are pretty straightforward. The aim with these regulations is to ensure that all employees, and employers as well, get to benefit from the contract and ensure that they are compensated for the work they had rendered to the company concerned. One area of confusion in the labor law within the state concerns out-of-state workers or those who are non-residents of California but only come to the state for work purposes. There has been many cases of employer liability in this area in the past and businesses who wanted to avoid this particular dilemma must understand how this particular area of the law works.
According to the California labor law, the reach of its overtime pay laws has been expanded to now cover even out of state workers. This is why the state’s laws is currently considered as one of the costliest in the country. Some business owners believe that it is devastating for the employers rights and puts a lot of burden on the part of the employer. On the other hand, it is also an employee-friendly law, which offers more benefits to them than the federal government or other states could offer.
To make it easy to understand, any company that sends workers for an assignment in California must comply with the California labor law, even for temporary assignments. In fact, even a full day’s work already makes an employee qualified for this particular regulation. This was evidenced by the California Supreme Court after a dispute was held between an employee against Oracle Corp. With the dispute settled, the company was required to settle overtime pay to its employees, which is one and a half times of the employee’s regular rate.
There were many criticisms, mostly from employers and business owners in and outside of California, about this particular regulation in the labor industry. However, the Court insists on their decision and cited that the Labor Code of the state is inclusive. The Labor Code, after all, only cited that the regulations will apply to all employment within the state and did not single out the place of residence for those employees. Thus, it automatically translates to the fact that it covers all individuals working in this particular state. On the other hand, labor regulations on employees who are non-residents of California is intended to avoid employers from contracting employees or workers from other states.
Employers rights are not violated with this particular law and ensures that it does not create conflict with labor laws from other states, reiterates the California Supreme Court. It is important to note though that any hours worked in excess of the usual 8 that is expected from employees per working day is considered as overtime in California. Any employer having confusion understanding the California labor laws when it comes to pay for out of state workers must try to research more about these policies and their specific clauses to avoid violation of the law.