California gives Computer Professionals and Physicians a Raise

Physicians, surgeons and computer software professionals are exempt from overtime so long as they meet a minimum state requirement in pay. California labor code 515.5 and 515.6 require that these professions receive a minimum hourly rate as well as monthly annual minimums. If they do not meet these requirements they are entitled to overtime pay.

It’s important to note that they still must meet the exemption requirements outlined by the state. These requirements cover the job duties and function of the employee. Simply calling an employee a computer professional is not sufficient.

California Labor Code sections 515.5

An employee in the computer software field shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Section 510 if all of the following apply:

(1) The employee is primarily engaged in work that is intellectual or creative and that requires the exercise of discretion and independent judgment.

(2) The employee is primarily engaged in duties that consist of one or more of the following:

(A) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications.

(B) The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications.

(C) The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems.

(3) The employee is highly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, or software engineering. A job title shall not be determinative of the applicability of this exemption.

Computer Software
Effective January 1, 2013, the DLSE announced a $1.01 increase in the hourly rate for computer professionals, from $38.89 to $39.90 per hour. The monthly rate increases $175.56, from $6,752.19 to $6,927.75 per month. Finally, the annual salary increases $2,106.68, from $81,026.25 to $83,132.93 per year.

Licensed Physicians or Surgeons
Effective January 1, 2012, DLSE announced a $1.84 increase in the hourly rate for licensed physicians and surgeons, from $70.86 to $72.70 per hour.