Remote Work and Legalities: Do California Labor Laws Apply to OutofState Workers? Find answers in our detailed blog.I had to Google that to figure out what Labor Code 2802 is. That's a California law. Since the employer is in CA the CA labor code controls and you can sue under Sec. What is the Law Regarding Overtime? The statute you are referring to is a portion of the California Labor Code, and it applies only in the state of California. The mission of the California Labor Commissioner's Office is to ensure a just day's pay in every workplace in the State and to promote economic justice. An employee may receive, in lieu of overtime compensation, compensating time off at a rate of not less than one and one-half hours for each hour of employment. (4) The employee is regularly scheduled to work no less than 40 hours in a workweek.