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Member, Beacon International Group, Ltd.
SAN FRANCISCO (Reuters)—Unlicensed accountants at PricewaterhouseCoopers L.L.P. are not automatically covered by California's overtime laws, a U.S. appeals court ruled Wednesday.
Two-thousand unlicensed junior accountants brought a class action lawsuit against PwC, claiming the giant accounting firm failed to pay them mandatory overtime under California law. A lower court found that PwC could not exempt them from the state's overtime requirements.
The 9th U.S. Circuit Court of Appeals reversed on Wednesday, ruling that PwC is entitled to litigate whether the unlicensed accountants can be exempted from overtime laws. The 9th Circuit remanded the case back to a district court in Sacramento, Calif., for further proceedings.
Representatives for the plaintiffs did not immediately respond to requests for comment.
PwC spokeswoman Caroline Nolan said the firm was pleased the appeals court supported its arguments.
"The firm greatly values these employees and considers their work an integral part of PwC's success," Ms. Nolan said.
The case in the 9th Circuit is Jason Campbell, Sarah Sobek et al. vs. PricewaterhouseCoopers L.L.P., 09-16370.