California Wage and Hour Laws: Do They Extend to Offshore Workers?

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A recent case, Gulf Offshore Logistics, LLC et al. v. Superior Court of Ventura County, brings to light an interesting question for employees stationed off the shore of California. Which state’s wage and hour laws apply to an employee? Is it the state the employer is located? Is it the state in which they applied and interviewed for the job? Is it the state in which they acknowledged receipt of employment documentation and contracts? Is it the state in which they live while they work offshore? These are the questions being asked in this case. 

The Case: Gulf Offshore Logistics, LLC et al. v. Superior Court of Ventura County

Case Info: Case number B298318, in the California Court of Appeal, Second Appellate District

In Gulf Offshore Logistics, LLC et al. v. Superior Court of Ventura County, three employees filed a proposed class action lawsuit claiming their employers violated California laws pertaining to minimum wage, overtime, meal and rest periods, providing accurate wage statements, and maintaining accurate wage statement records. The employers moved for summary judgment arguing that California labor laws do not apply, but the trial court denied the motion. 

The Employment Situation of Gulf Offshore Logistics Employees Stationed Offshore:

According to lawsuit documents, employees of Gulf Offshore Logistics provided maintenance service for offshore oil platforms located outside California’s boundaries. The vessel transporting the employees to the oil platforms so they could perform their job duties docked in a California port. Employees reached the California port by flying in and out of Los Angeles, California. The vessel sailed through the Santa Barbara channel (located within California’s state law boundaries), but then sailed out of California waters to reach oil platforms in need of service. 

The Court of Appeals Found that California Labor Law Did Not Apply: 

Due to a number of notable facts, the Court of Appeals found that California Labor did not apply. Notable facts that were considered prior to the Court of Appeal’s decision included: 

  • The employer, Gulf Offshore Logistics, were LLCs formed under Louisiana law. 

  • Members were all Louisiana residents. 

  • Employees applied for and interviewed for their jobs in Louisiana. 

  • Employees acknowledged receipt of employment documents in Louisiana. 

  • Employees did not reside in California. 

In conclusion, the Court of Appeals decided that Louisiana had more significant contacts with the parties involved and a greater interest in regulating this particular employer/employee relationship than the state of California. 

The California Supreme Court on Related Cases: 

The California Supreme Court decided two related cases - both concerning the application of California wage and hour law to employees performing work for employers (both in and out of California). The first is Ward v. United Airlines (2020) 9 Cal.5th 732. The second is Oman v. Delta Air Lines (2020) 9 Cal.5th 762. In Ward v. United Airlines, the Court considered the application of California’s wage settlement requirement and held that workers are “covered...if they perform the majority of their work in California.” The court also found that if they do not perform the majority of their work in any one state, they will be covered if they are based “for work purposes in California.” In Oman v. Delta Air Lines, the California Supreme Court extended the holding to Section 204 governing timing of wage payments. The court found that requirements regarding wage statements in this section apply only during those pay periods when the employee was based in California or performed work primarily in California. In both cases, the California Supreme Court stated it would not be appropriate to adopt a single test to determine application of California wage and hour law to multistate workers since it would vary depending on the statute and the situation. 

In Light of California Supreme Court Decisions, the Court of Appeals Adjusted their Findings: 

After the California Supreme Court decision on both the Ward and Oman cases, the Court of Appeals adjusted their stance on Gulf Offshore Logistics, LLC et al. v. Superior Court of Ventura County. The Court of Appeals’ new decision was that the most relevant issue was where the work was performed. Gulf Offshore Logistics could seek further review from the California Supreme Court.                          

If you have questions regarding employment law and how it applies to multi-state employment arrangements, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.