Computer Software Professional Exemption, California Computer Software Exemption
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California Computer Software Exemption and Overtime Requirements
Computer Software Professional Exemption
United Employees Law Group has been a leader in the area of computer and IT overtime pay enforcement. Our firm, along with our co-counseling law firms, has successfully litigated against some of the largest computer companies in the world and has recovered millions of dollars in overtime pay for thousands of employees.
The computer software professional exemption is also sometimes known as the computer field exemption in California, computer exemption in California, California computer professional exemption or the California computer software exemption. This particular exemption is found under California Labor Code 515.5 and is a California labor law computer programmers rely on for guidance on overtime payment.
California exempt computer professionals must work as many hours as their employers require, and are unfortunately not entitled to overtime pay, or timely meal and break periods due to their exemption status. The good news is that “most” computer professionals are actually non exempt and entitled to overtime pay under California Labor Code 515.5. The computer professionals minimum salary in California must be paid under California Labor Code 515.5 for the employers to have an opportunity to exempt the employee from computer professionals overtime pay. In September 2008, new legislation was passed which substantially reduced the salary requirements for Computer/IT Professionals. The new modification permitted a fixed salary to be paid regardless of the hours that are worked. It is important to realize that this ONLY eliminates overtime for work performed after September 30, 2008 so you may still be entitled to overtime for past work based on the Salary Chart parameters provided below. It is even more important to note that many Computer Programmers and IT Professionals are actually misclassified as exempt from overtime when viewing compliance with California Labor Code 515.5, irrespective of the salary requirements.
Many CA IT Professionals overtime issues are not addressed by their employers especially when they work on call. Given the California computer software exemption does not apply and the employee is entitled to overtime, whether or not the employee can be paid “standby time” while on call is many times determined by how restricted they are. In other words, does the employee, for example, need to be near a land line to login to a computer if a call comes in or can the employee just carry a cell phone and assist by phone if needed?
In 2006, the U.S. Department of Labor in a letter indicated that employees that primarily analyze, troubleshoot and resolve complex problems with business applications, networking and hardware are entitled to computer professionals overtime pay. Also, employees who primarily install, configure, and test computer hardware are not exempt and are entitled to overtime pay. Therefore, their employers must pay these computer professionals overtime pay. Most computer professionals overtime pay is due unless such employees primarily spend their time working on management policies or general business operations.
Most IT employees are entitled to California overtime for computer professionals. An important case was recently decided in California in regard to CA IT professionals overtime pay called Combs v. Skyriver Communications, Inc. This is a good case for computer professionals as the court ruling describes what job duties may make California IT professionals salary exempt, labor laws notwithstanding. In this California labor law computer overtime case, the employee did many management oriented tasks and was clearly exempt from overtime pay. Regardless of the job title an employee is given or whether the employee is told he or she is exempt from overtime, the tasks performed will determine whether they are entitled to overtime pay.
Computer and IT Professionals Salary/Overtime Requirements
We have prepared an easy to follow chart that shows the computer professionals minimum salary in California that must be paid in order for computer programmers to fall under the California computer software exemption. Under California labor law, computer programmers are likely entitled to overtime pay if they are paid less than the chart below for the hours worked. In addition, this same California labor law computer overtime diagram should be used by employees to examine past jobs going back up to four years in accordance with the CA statute. If you have been paid less than the amount on the chart below then the Computer exemption in California may not apply to you and you may be entitled to overtime pay. It is suggested you consult with experienced
California overtime law attorneys to obtain clarification of your standing. Effective January 1, 2012 the California Division of Labor Statistics and Research has adjusted the minimum pay rates for this exemption. These increased pay rates in the Salary Chart below can be found under calendar year 2012.
Note: Even if you are paid more than the chart below indicates, you may be entitled to overtime pay if you are classified as non exempt under California Labor Code 515.5. This is why every computer and IT employee who is classified as exempt (not entitled to overtime) should speak to a California labor attorney.
Salary Required for Hours in Work Week:
Year
Hourly
@ 40 hours
@ 50 hours
@ 60 hours
@ 70 hours
@ 80 hours
2012
$38.89
$81,026
$81,026
$81,026
$81,026
$81,026
2011
$37.94
$79,050
$79,050
$79,050
$79,050
$79,050
2010
$37.94
$79,050
$79,050
$79,050
$79,050
$79,050
2009
$37.94
$79,050