CA Opinion Letter 2002.06.12 June 12, 2002 Active
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Coverage of California wage laws

Summary: An attorney asked whether California wage and wage-payment laws apply to an employee under a written contract for 18-24 months of overseas work, depending on whether any work was performed in California and whether payroll was administered there. DLSE gave a brief, general answer: absent a choice-of-law clause in the contract, the question turns on which jurisdiction (foreign or domestic) has the greatest interest in the outcome, largely driven by the residence of the parties, rather than on payroll administration location alone. Employers sending workers on extended overseas assignments should address choice of law explicitly in the employment contract rather than relying on this fact-specific default.
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STATE OF CALIFORNIA GRAY DAVIS, Governor

DEPARTMENT OF INDUSTRIAL RELATIONS
DIVISION OF LABOR STANDARDS ENFORCEMENT
Santa Rosa Legal Section
50 D Street, Suite 360
Santa Rosa, CA 95404
(707) 576-6788

H. THOMAS CADELL, Of Counsel

                                 June 12, 2002

Dena R. Graff, Esq.
Fitzgerald, Abbott & Beardsley, LLP
1221 Broadway, 21st Floor
Oakland, CA 94612-1837

      Re:        Coverage Of California Wage Laws

Dear Ms. Graff:

 Anne Stevason, Acting Chief Counsel of the Division, has asked

me to respond on behalf of the Division of Labor Standards
Enforcement to your letter of April 9, 2002.

 Your question concerns an employee with a written contract

(you use the term "written expat agreement" but we are unfamiliar
with the term and cannot find it in Black's Dictionary or American
Heritage Dictionary) which provides that the employee will work
overseas for at least 18 months, but not more than 24 months, with
an option to extend.

 You ask whether California wage and wage payment laws apply to

wages earned in the year in which the employee does no work in
California. You next ask whether those same laws would apply if
some of the work was performed in California. Finally, you ask
whether it would depend on whether the employee's payroll was
administered in California.

 The answers, in fact, depend on the intent of the parties.

Were a conflict to arise and no choice of law intent was evident in
the contract between the parties, the question of the correct law
to apply would depend, of course, on which state (foreign or
domestic) has the greatest interest in the outcome of the matter.
In large part, the residence of the parties would be determinative.

Yours truly,

H. THOMAS CADELL, JR.
Attorney for the Labor Commissioner

c.c. Arthur Lujan, State Labor Commissioner
Tom Grogan, Chief Deputy Labor Commissioner

Anne Stevason, Acting Chief Counsel
Assistant Chiefs, Regional Managers