California Wage Laws Apply if Boats Docked in State, Rules Court

An appeals court ruled that California wage laws apply to companies that dock and travel in state waters, despite being headquartered elsewhere.

The ruling concerned allegations that Gulf Shore Logistics, LLC and JNB Operating, LLC violated California labor laws concerning overtime, minimum wages, rest and meal breaks, and record keeping. Crew members working for the Louisiana-based companies lodged the complaint, claiming that the boats they worked on were docked and traveled through the state’s waters.

Gulf Shore and JNB argued that Louisiana wage laws should apply, rather than the more restrictive California wage laws. The superior court ruled that California laws should apply, but the companies successfully argued for the application of Louisiana law in appellate court; however, under guidance from the state supreme court, the appellate court has reportedly vacated its previous ruling, according to Law360.

Appeals Court Reverses Previous Ruling

A previous ruling held that Louisiana law should apply to the crew members’ lawsuit. That ruling was based on reasoning in a case that applied California employment law to pilots, despite the fact that they spent most of their working hours in federal air space.

However, the court of appeals reconsidered and concluded that their initial reasoning was wrong. The appeals court pointed to California Supreme Court guidance shooting down their previous findings.

“Our prior opinion concluded that Louisiana had a greater interest in regulating these employment relationships because the employers were based in Louisiana and many of the administrative aspects of the employment relationship were centered in that state,” stated the order. “In this regard, we were mistaken. Oman clarifies that the relevant consideration is the location in which work is performed. Here, that location is California.”

Employee Rights Under California Law

In 2016, the plaintiffs in the class action lawsuit alleged that the companies had violated state employment laws, pointing out that crew members embarked and disembarked in California and spent much of their time working in California waters.

The plaintiffs, oil rig workers claimed they were paid a flat daily rate for working over 12 hours a day for between 21 and 42 days in a row. The plaintiffs filed the class action lawsuit after they were let go from work as crew members and engineers on the Adele Elise, a vessel that provided services to oil platforms located off the California coast.

Indeed, employees are afforded additional rights and protections under California wage and hour laws. Overtime pay is required for employees who work more than eight hours a day or 40 hours in a week. Overtime pay is calculated at one and one-half times the employees regular pay for the first four hours, then it becomes double pay.

In addition, California employees are entitled to meal and rest breaks while working, including a 30-minute meal break for every five hours and a 10-minute rest break. During these breaks, employees must be released from all work duties. If these breaks are not taken, employers owe employees extra wages for their time.

California also boasts a higher minimum wage than required under federal law. Currently, California’s minimum wage is $12 an hour for companies under 25 employees and $13 an hour for companies with 26 or more employees. These wages are set to increase to $15 per hour for all eligible California employees by 2023.

The Offshore Wage Law Class Action Lawsuit is Gulf Offshore Logistics LLC et al. v. Superior Court, County of Ventura, Case No. B298318, in the California Court of Appeal, Second Appellate District.