With respect to a computer professional exemption, the dol analogously concluded that such exemption did not apply to the it specialist because the primary duty of the employee did not involve the application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional. Computer software employee exemption california department of. Employees who have not attained the skill and expertise to. California 2020 minimum salary requirement for exempt. Sections 3 through 12 of the orders 3 through 11 for order 162001 do not apply. Cea members can use the exempt analysis worksheetcomputer professional exemption to determine the applicability of this exemption. The computer professional exemption is a relatively new legislation that was added to california state law by s. Minimum salary rate increases for california computer. California software tta exemption written by aaron giles posted in state tax in 1993, the california legislature enacted a sales tax exemption for technology transfer agreements tta relating to the transfer of intellectual property, but has never really honored that exemption until the 2011 nortel court ruling. Five exempt employee classifications all california employers. Computer employee exemption a computer professional is an employee that works in a skilled computing job as a systems analyst, computer programmer, software engineer, web or app developer, machine learning scientist, or other similarly technical and specialized role. The california department of industrial relations announced the new minimum salary threshold for exempt computer professionals.
The california exemption varies the terms used to describe the third type of exempt work so that all of the activities listed must relate to the design of particular software or hardware. Computer professional exemption a california employee. Under california law and wage orders, a computer professional is exempt from overtime compensation if he or she is highly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, or software engineering. California increases 2018 threshold for computer software. The computer professional employee exemption under the fair labor standards act flsa does not apply to a health care employers information technology it. The california department of industrial relationsdir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemptions. Therefore, this post turns to the computer professional exemption. California employers association 2020 exemption updates.
Californias department of industrial relations dir has announced its rate increase for this minimum, effective january 1, 2017. Depending on the circumstances, computer programmers, computer systems analyst, software engineers, and other similarly skilled workers can be exempt from overtime under california law as well as the federal fair labor standards act flsa. California 2020 minimum salary requirement for exempt computer. The computer professional employee exemption in california 2020. Employers with exempt computer software employees in california should make sure that they will be paid at or above the new 2018 thresholds to maintain exempt status. Jan 02, 2020 the computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees.
Student nurses in a school accredited by the california board of registered nursing or by the board of vocational nurse and psychiatric technician examiners. California computer professional salary requirement to. The professional exemption applies to employees who work in one of eight specified professions, or who work in a learned or artistic profession. The eight specified professions are law, medicine, dentistry, optometry, architecture, engineering, teaching, and accounting. State of california department of industrial relations.
Exemptions from the overtime laws california department of. Unlike the more strictly quantitative outside sales exemption salary basis test, californias professional exemption relies on numerous tests, connected to both job description and salary. Beginning january 1, 2016, to be exempt from californias overtime pay requirements under the computer professional overtime pay exemption codified in labor code 515. Apr 24, 20 with respect to a computer professional exemption, the dol analogously concluded that such exemption did not apply to the it specialist because the primary duty of the employee did not involve the application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional. The law requires a specific hourly, monthly or yearly salary which is set by the state of california each year. Nov 5 2019 compensation katie culliton computer professionals must meet all legal requirements to be considered exempt. Feb 26, 2012 the computer professional exemption is a relatively new legislation that was added to california state law by s. The law requires that a strict new abc test be used to determine whether many california workers are employees or ics for purposes of california employment laws, including those requiring minimum wage, overtime pay, unemployment insurance, workers. To qualify for the computer employee exemption, the following tests must be met. The required compensation levels for employees exempt from overtime rate of pay requirements under the california computer software professional exemption will increase by 2. The computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees. Classifying computerrelated employees under california.
An employee is not exempt as a computer professional if any of the following conditions apply. Computer employee exemption about the flsa computer. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs e. The california computer professional exemption bowles law.
California introduces new compensation rate for computer. California overtime exemptions exempt vs nonexempt. Some employees, however, are exempt from minimum wage and overtime laws, as well as related laws requiring employers to provide rest periods. California announced 2019 exemption rates for computer. Recently i published a list of common exemptions under california law. Overtime and professional exemption for engineers in california. The duties test focuses on the duties actually performed, not on the job title or on the duties that an employer writes into a position description. Overtime and professional exemption for computersoftware. Are you aware of the rules used to classify an employee as an exempt professional under california law. Exempt job categories under californias new ab5 law nolo.
Oct 31, 2018 remember that californias minimum wage will also increase on january 1, 2019 this increase will affect the commonly used professional, executive and administrative exemptions. State of california department of industrial relations office. Job duties that require highly specialized knowledge of computer systems or software will not usually satisfy the duties test unless the. This fact sheet provides information on the exemption from minimum wage. Increase in salary for computer professional exemption in california by arkady itkin under california labor code section 515. Californias department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption.
California announced 2019 exemption rates for computer software and licensed professional. The california and federal duties tests are similar in their descriptions of the job duties that professional employees must perform to qualify for the exemption. A new law on how to determine whether california workers are employees or independent contractors ics went into effect on january 1, 2020. Remember that californias minimum wage will also increase on january 1, 2019 this increase will affect the commonly used professional, executive and administrative exemptions. The professional exemption in california mccormack. Trainees or entrylevel employees still learning to apply highly specialized information in the computer field. Computer professional exemption a california guide for employees. Exempt and nonexempt employees california chamber of. Californias labor commissioner adjusts professional.
Californias dir announced rate changes for the computer software employee. New 2019 exempt classification rates advocacy california. As of january 1, 2020, california employers must ensure that. New 2020 exempt classification rates hrwatchdog california. California overtime pay laws for computer professionals. Specifically, the courts generally require that to fall within the computer professional exemption an employees primary duty must require theoretical and practical application or highlyspecialized knowledge in computer systems analysis, programming and software. California computer professional exemption updated for 2012. The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. More information is available on the dirs web site. Executive, administrative and professional employees.
As part of its professional employee exemption, california exempts computer employees from it minimum wage and overtime requirements. Overtime and professional exemption for computersoftware engineers in california by arkady itkin in california, whether a computersoftware professional is properly exempt from overtime compensation or whether he should be entitled to overtime is governed in large part by california labor code 515. Computer employee exemption about the flsa computer exemption. Exempt employees are not entitled to overtime pay, reporting time pay, nor are they provided meal and rest break periods. Jan 15, 2020 the california and federal duties tests are similar in their descriptions of the job duties that professional employees must perform to qualify for the exemption. Unlike the more strictly quantitative outside sales exemption salary basis test, californias professional exemption relies on numerous tests, connected to both job description and salary it is essential to understand. The computer professional employee exemption in california. California court finds professional overtime exemption. Oct 18, 2017 employers with exempt computer software employees in california should make sure that they will be paid at or above the new 2018 thresholds to maintain exempt status. Are information technology it specialists entitled to. California announces 2020 compensation rate for computer professional exemption as of january 1, 2020, california employers must ensure that compensation rates for computer professionals meet new.
It and computer technology workers overtime exemption. California computer professional duties test remains unchanged. The law requires that a strict new abc test be used to determine whether many california workers are employees or ics for purposes of california employment laws, including those requiring minimum wage, overtime pay. California s department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption. Individuals in these classifications must be paid at least two times the state minimum wage, in addition to meeting all other legal requirements for this exemption. An employee in the computer software field who meets certain duties requirements and is paid a specified minimum hourly rate may be classified as exempt from overtime.
It and computer technology workers overtime exemption cohelan. Unlike its two conformist siblingsthe licensed professional and learned professional exemptionsthe creative professional exemption is an artsy rebel that does not depend on an employees professional field, advanced knowledge, or educational degree. Some people who qualify for the professional exemption are easy to identify, such as those licensed or certified by the state of california, including those in law, medicine, dentistry, optometry, architecture, engineering, teaching, or accounting, for example. Although many computer programmers are paid on a salary and never receive overtime, the fact is that computer programmers must be paid overtime unless they meet one of the exemptions. An employee in the computer software field who is paid on an hourly basis shall be exempt, if all of the following apply. Rate of pay for exemption for computer software employee oct. The california industrial welfare commission wage orders contain a limited computer professional exemption.
The software professional wagehour exemption in california does not apply to. A closer look at flsas computer professional exemption. Computer professionals must meet all legal requirements to be considered exempt. Increase in salary for computer professional exemption in. Effective january 1, 2020, a computer professional must receive a salary of no less. California announced 2019 exemption rates for computer software. To qualify for the computer employee exemption, an employee must. As discussed in a prior posting, californias wage and hour law makes a distinction between exempt and nonexempt employees, not salaried versus hourly employees. An employee in the computer software field who is paid on an hourly basis. Depending on the circumstances, computer programmers, computer systems analyst, software engineers, and other similarly skilled workers can be exempt from overtime under california law as well as the federal fair labor standards act flsa applicability of the computer professional. Employees who have not attained the skill and expertise to work without close supervision. The appellate court held that californias professional overtime exemption applied to the plaintiff during the period of time he was employed as a law clerk at. Jan 01, 2020 the software professional wagehour exemption in california does not apply to. The california professional exemption a simple law guide.
The courts narrowly construe the computer professional exemption. Five things every employer with it workers must understand about. Five things every employer with it workers must understand. The second largest category of exempt employees, after the executive exemption, are. The employee is a trainee or involved in an entrylevel position and learning to become proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming and software engineering. Jan 05, 2015 overtime and professional exemption for computer software engineers in california by arkady itkin in california, whether a computer software professional is properly exempt from overtime compensation or whether he should be entitled to overtime is governed in large part by california labor code 515.
Computer professional exemption a california guide for. California announces 2020 compensation rate for computer. Exempt from order 5, except sections 1, 2, 4, 10, and 20. If you spend more than 50% of your time on analysis and design of software, you might qualify for the administrative exemption.
464 581 867 330 1606 956 1063 317 1463 1612 1176 1360 211 1144 120 88 1388 859 753 1385 684 1412 443 556 794 827 436 1340 1382 330 508 1239 281 853 540 797 1174 840 185 1057 1408 111 462 87