California’s labor laws generally apply when work is performed in California, even if the employer is based in another state. However, when employees work outside California, the labor laws of the state where the work is physically performed typically govern the employment relationship instead.

Do California’s Labor Laws Apply to Out-of-State Employers and Employees?

If you have questions about which laws apply to your situation, contact our Orange County employment lawyers today for a free consultation.

When an Out-of-State Employer Has California Employees

If an employee performs work in California, California labor laws typically apply regardless of where the employer is incorporated or headquartered. For example:

A company based in Texas hires a marketing manager who works remotely from San Diego.
A Nevada corporation operates a branch office in Los Angeles.
A New York employer sends an employee to work in California for an extended assignment.

Employers cannot avoid compliance with California labor laws simply by operating from another state. In these situations, California wage and hour laws, overtime rules, meal and rest break requirements, and anti-discrimination protections generally govern the employment relationship.

When a California Employer Has Out-of-State Employees

The opposite scenario produces a different result. If a California-based company employs someone who works entirely outside the state, the labor laws of the state where the employee performs the work typically apply. For example:

A Los Angeles company hires an employee who lives and works full-time in Arizona.
A California business expands operations into Nevada and staffs that location with Nevada-based workers.

In these cases, Arizona or Nevada labor laws generally govern the employment relationship, not California law. California labor protections do not automatically extend to employees working permanently in other states.

Multi-State Work and Temporary Assignments

When employees work in multiple states, courts may apply California labor laws to the portion of work performed within the state, particularly for wage and hour claims. Even temporary assignments in California can trigger compliance obligations. The length of time worked and the nature of the job duties can influence which laws apply.

Key California Labor Protections

When California law applies, employees may benefit from protections such as:

Daily overtime after eight hours in a workday.
Double time in certain circumstances.
Mandatory meal and rest breaks.
Strict minimum wage standards.
Reimbursement for necessary business expenses under Labor Code Section 2802.
Broad anti-discrimination protections under the Fair Employment and Housing Act.

These protections frequently exceed federal standards and those of many other states.

Employment Contracts and Choice-of-Law Clauses

Some employers include “choice-of-law” provisions in employment agreements stating that another state’s law governs the relationship. These clauses may carry weight in some circumstances, but they cannot automatically strip California-based employees of fundamental protections. California courts often prioritize strong public policy interests in protecting workers who perform services within the state.

Why Does it Matter Which State Laws Apply?

If your employer is applying another state’s labor laws to your work and you believe you should be receiving stronger protections, that may signal a problem. This often arises in situations involving unpaid overtime, missed meal or rest breaks, improper minimum wage calculations, or denied expense reimbursements.

For example, you may be paid overtime only after 40 hours in a week instead of after eight hours in a day, or you may not receive legally required break premiums. If you suspect you are being underpaid or denied rights because of confusion over which state’s laws apply, document your hours worked, pay rates, and job location history then speak with an employment law attorney in Orange County. Schedule your free consultation today.