California Labor Code sections 515.5 and 515.6 provide that certain computer software employees, as well as licensed physicians and surgeons, are exempt from state overtime requirements if they receive a minimum hourly, monthly, or yearly rate. Effective January 1, 2013, the following rates of pay are required for the employee to be exempt under California wage and hour law.
In accordance with Labor Code section 515.5(a)(4), the DLSE has adjusted the computer software employee’s minimum rate of pay to qualify for the exemption as follows: (1) an hourly rate of $39.90 per hour (a $1.01 increase); (2) a monthly salary of no less than $6,927.75; and (3) an annual salary of no less than $83,132.93.
Licensed Physicians or Surgeons:
In accordance with Labor Code section 515.6(a), the DLSE has adjusted the licensed physicians and surgeons employee’s minimum hourly rate of pay to qualify for the exemption to $72.70 (a $1.84 increase from the current rate).