In Sullivan v. Oracle Corp. (first reported by a Fenwick & West at http://www.fenwick.com/publications/6.5.4.asp?mid=40&WT.mc_id=EB_112008_web#cali), a three-judge panel of the Ninth Circuit Court of Appeals held that California's overtime laws applied to work performed in the state by nonresident employees. A group of Oracle employees who resided outside California but traveled into the state periodically to perform work for Oracle sued the company, claiming that they were entitled to the benefits of California's more favorable overtime laws (e.g., daily overtime) for the work they performed in California. The Ninth Circuit agreed, but later withdrew its decision in response to a petition for review, and asked the California Supreme Court to clarify application of California's overtime and other wage/hour laws to nonresident employees who perform work in the state.

Recognizing that a "large but undetermined number of California-based employers employ out-of-state residents to perform work in California," the Ninth Circuit noted that the state court's ruling "will have considerable practical importance."