California updates computer, physician overtime exemptions

California has updated overtime exemptions for computer software employees and for licensed physicians and surgeons.

Computer software employees. The California Department of Industrial Relations (DIR) has adjusted the computer software employee’s minimum hourly rate of pay exemption from $41.27 to $41.85, the minimum monthly salary exemption from $7,165.12 to $7,265.43, and the minimum annual salary exemption from $85,981.40 to $87,185.14, effective January 1, 2016, reflecting a 1.4% increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers (August 2014 to August 2015).

California Labor Code Section 515.5 provides that such employees are exempt from overtime requirements of Section 510 if certain criteria are met, including that the employee’s hourly rate of pay be not less than the statutorily specified rate, which is annually adjusted based on changes in the cost of living.

Licensed physicians and surgeons. The Department of Industrial Relations has adjusted the licensed physicians and surgeons employee’s minimum hourly rate of pay exemption from $75.19 to $76.24, effective January 1, 2016, to reflect a 1.4% increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers from August 2014 to August 2015.

The Department of Industrial Relations adjusts the minimum hourly rate of pay exemption for licensed physicians and surgeons on October 1 of each year, to be effective the following January 1, based on the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers. (State of California Department of Industrial Relations, Office of the Director–Research Unit, Memorandum on the subject of “Overtime Exemption for Computer Software employees”, October 7, 2015, http://www.dir.ca.gov/OPRL/ComputerSoftware.pdf); State of California Department of Industrial Relations, Office of the Director–Research Unit, Memorandum on the subject of “Overtime Exemption for Licensed Physicians and Surgeons October 7, 2015, http://www.dir.ca.gov/OPRL/Physicians.pdf).)

Visit our News Library to read more news stories.