Changes to Computer Professional Exemption

Winter 2009Newsletters California Update - Employment Law

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California recently extended the overtime exemption for computer professionals to apply to those paid a salary as well as those paid on an hourly basis. This is good news for employers because prior to the amendment, there was no flat salary rate that guaranteed exemption for these employees. Effective on January 1, 2009, the minimum hourly rate for an employee to be classified as an "exempt" computer professional in California is $37.94, the minimum monthly salary is $6,587.50, and the minimum annual salary is $79,050.00. Of course, these employees must also continue to meet the "duties test" under California Labor Code 515.5 to be classified as exempt.