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U.S. appeals court revives Oracle overtime lawsuit

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By Terry Baynes

(Reuters) - A federal appeals court
on Tuesday revived a class-action lawsuit against Oracle Corp, basing
its ruling on a state court decision that employers in California must
pay nonresident workers for overtime work performed in the state.

The U.S. Court of Appeals for the 9th
Circuit reversed a federal district court ruling in favor of Oracle.
Under the California's wage and hour laws, the appellate court found,
Oracle could be liable for unpaid wages if it did not compensate
out-of-state computer trainers for overtime work performed in the state.

Oracle employees who were residents
of Arizona and Colorado had sued the company for not paying them
overtime for work performed in California. The trial judge granted
summary judgment in Oracle's favor.

On appeal, the 9th Circuit asked the
California Supreme Court to provide guidance on whether the California
labor code applies to nonresident employees when they perform work in
the state. In June, the California high court ruled that it did, finding
that not applying California law would encourage employers to
substitute lower-paid temporary employees from other states for
California employees.

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