Another Minimum Rate Change for Computer Software Professionals

In 2007, the minimum hourly rate for exempt computer software professionals in California was $49.77 per hour. This hourly rate was reduced to $36.00 per hour in 2008. Until 2008, the exemption applied only to hourly workers. In September 2008, AB 10 amended California Labor Code § 515.5 to apply the overtime exemption to qualifying computer programmers, analysts and engineers who are paid a monthly salary of $6,250 or more each month ($75,000 annually, excluding bonuses). Alternatively, employers can also keep such employees on an hourly basis and enjoy the exemption if the employees are paid at least $36 per hour for all hours worked. The bill was passed as urgency legislation and is already in effect.

The Division of Labor Statistics and Research adjusts the rate annually for inflation in accordance with Labor Code § 515.5(a)(4). Pursuant to that provision, effective January 1, 2009, the rate will increase from $36.00 to $37.94; the minimum monthly salary exemption from $6,250.00 to $6,587.50; and the minimum annual salary exemption from $75,000 to $79,050.

A full rate history of the wages required under Labor Code § 515.5 can be downloaded here in PDF.