In the case of Sullivan, et al. v. Oracle Corp., et al., former employees of a California-based software company, Oracle Corp, issued a lawsuit against their former employer, stating that they were not provided with overtime compensation. They claimed that Oracle Corp was violating the Labor Code of California, which requires overtime compensation for hours worked above 8 per day or 40 per week. It is important to note that these employees worked mainly in Colorado and Arizona but had traveled to California on several occasions for work.
In addition, the employees demanded compensation for the insufficient overtime pay under the federal Fair Labor Standards Act (FLSA) and also claimed that the company was engaging in unfair business practices by failing to pay overtime, which violates California’s unfair competition legislation (UCL).
The former employees’ claims were found to be covered by the Labor Code’s overtime rules, and the court determined that these allegations qualified as UCL claims. The court ultimately ruled that UCL allegations could not be premised on FLSA allegations for overtime worked within other states.
In the end, the former employees were awarded $1.3 million in overtime compensation damages. This amount is based on the number of hours they worked in California and in accordance with the California minimum wage.
Key lessons from this case:
- California labor laws, including overtime, related, can apply to employees who work both in California and other states for a California-based employer.
- This case demonstrates how issues involving overtime pay might be the basis for UCL claims in California. By claiming that the employer’s refusal to pay overtime amounts to overtime payments creates an illegal or unfair business act or conduct that is a violation of the UCL, employees can seek compensation for unpaid overtime wages.
- The case highlights that employees have the right to overtime pay under the California Labor Code. To prevent potential legal issues and fines, employers must make sure that these overtime regulations are followed.
Learn more about California Labor Laws through our detailed guide.
