Remote work is common. Many California based companies have employees in other states. But does the California Labor Code cover those employees as though they were living and working in the state? On July 30, 2026, the California Court of Appeal concluded that California employment laws, which may have essentially prohibited the Company from terminating the employee, did not cover a Utah-based worker.
California Labor Code Section 432.7 generally bars employers from using an employee’s non-conviction arrest history to fire them or make other employment decisions. Likewise, California Government Code Section 12952 makes it unlawful for most employers to consider non-conviction arrests when conducting background checks in connection with an employment application.
In Saberin, a California software company fired a Utah-based remote employee after he was arrested while on vacation in Florida. The criminal case was eventually dismissed and the employee filed a lawsuit claiming wrongful termination based on the California laws. Relying on sections 432.7 and 12952, he argued the California company unlawfully terminated him by considering his non-conviction arrest in the termination decision.
The Court of Appeal determined that neither California statue applied to the Utah employee. The Court first explained that California law includes a presumption against extraterritorial application of its law. Next, the Court reasoned...
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