New Lower Rates in Effect For Computer Software Professionals

Effective January 1, 2008, the minimum hourly rate for exempt computer software professionals in California decreased from $49.77 per hour to $36 per hour. Under California Labor Code § 515.5, the computer professional overtime exemption in California applies only to employees who meet a duties test and a minimum hourly pay rate, as established each year by the California Division of Labor Statistics. For salaried workers, this equates to an annualized salary of not less than $74,880 (down from last year's $103,521.60), plus $36 for each hour worked in excess of 40 in a work week. The Division of Labor Statistics and Research will adjust the rate annually for inflation.