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. Overtime and professional exemption for computersoftware. Some employees, however, are exempt from minimum wage and overtime laws, as well as related laws requiring employers to provide rest periods. Five exempt employee classifications all california employers. 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. The computer professional employee exemption in california. Rate of pay for exemption for computer software employee oct. California s department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption. To qualify for the computer employee exemption, an employee must. The required compensation levels for employees exempt from overtime rate of pay requirements under the california computer software professional exemption will increase by 2. 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. Exempt job categories under californias new ab5 law nolo.
As of january 1, 2020, california employers must ensure that. Exempt and nonexempt employees california chamber of. California 2020 minimum salary requirement for exempt. 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. California increases 2018 threshold for computer software. Employees who have not attained the skill and expertise to work without close supervision. 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.
California announced 2019 exemption rates for computer. The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. New 2019 exempt classification rates advocacy california. The california computer professional exemption bowles law. California computer professional exemption updated for 2012. Feb 26, 2012 the computer professional exemption is a relatively new legislation that was added to california state law by s. The computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees. 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. Five things every employer with it workers must understand. California overtime pay laws for computer professionals. Employees who have not attained the skill and expertise to. Exempt employees are not entitled to overtime pay, reporting time pay, nor are they provided meal and rest break periods.
Computer employee exemption about the flsa computer exemption. California court finds professional overtime exemption. State of california department of industrial relations. Increase in salary for computer professional exemption in california by arkady itkin under california labor code section 515. The computer professional employee exemption under the fair labor standards act flsa does not apply to a health care employers information technology it. Computer professional exemption a california guide for employees. 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 announces 2020 compensation rate for computer. Exempt from order 5, except sections 1, 2, 4, 10, and 20. 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. California computer professional salary requirement to. Executive, administrative and professional employees. 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. 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.
The professional exemption in california mccormack. Computer professional exemption a california guide for. The computer professional employee exemption in california 2020. This fact sheet provides information on the exemption from minimum wage.
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 software professional wagehour exemption in california does not apply to. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs e. California computer professional duties test remains unchanged.
Exemptions from the overtime laws california department of. Increase in salary for computer professional exemption in. An employee in the computer software field who is paid on an hourly basis shall be exempt, if all of the following apply. California announced 2019 exemption rates for computer software and licensed professional. Effective january 1, 2020, a computer professional must receive a salary of no less. 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. California 2020 minimum salary requirement for exempt computer. Jan 01, 2020 the software professional wagehour exemption in california does not apply to. If you spend more than 50% of your time on analysis and design of software, you might qualify for the administrative exemption. The law requires a specific hourly, monthly or yearly salary which is set by the state of california each year. 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.
Minimum salary rate increases for california computer. Classifying computerrelated employees under california. 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. 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. Computer professionals must meet all legal requirements to be considered exempt. Trainees or entrylevel employees still learning to apply highly specialized information in the computer field.
Student nurses in a school accredited by the california board of registered nursing or by the board of vocational nurse and psychiatric technician examiners. The california department of industrial relations announced the new minimum salary threshold for exempt computer professionals. The california industrial welfare commission wage orders contain a limited computer professional exemption. It and computer technology workers overtime exemption cohelan. Are information technology it specialists entitled to. Californias department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption. California overtime exemptions exempt vs nonexempt. 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. Californias sales and use tax applies to transactions in tangible personal property, which is defined as any personal property that can be seen, weighed, measured, felt, or touched, or is in any other way perceptible to the senses blacks law dictionary 3738 9th ed. Sections 3 through 12 of the orders 3 through 11 for order 162001 do not apply.
California employers association 2020 exemption updates. The second largest category of exempt employees, after the executive exemption, are. 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. The courts narrowly construe the computer professional exemption. 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. Nov 5 2019 compensation katie culliton computer professionals must meet all legal requirements to be considered exempt. 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 and computer technology workers overtime exemption. As part of its professional employee exemption, california exempts computer employees from it minimum wage and overtime requirements. The professional exemption applies to employees who work in one of eight specified professions, or who work in a learned or artistic profession.
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. A closer look at flsas computer professional exemption. Recently i published a list of common exemptions under california law. All orders, section 1, except orders 14 and 16, employees in the computer software field who are paid. New 2020 exempt classification rates hrwatchdog california. Jan 02, 2020 the computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees. 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. Californias dir announced rate changes for the computer software employee. 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. State of california department of industrial relations office. Californias labor commissioner adjusts professional. To qualify for the computer employee exemption, the following tests must be met.
An employee is not exempt as a computer professional if any of the following conditions apply. The eight specified professions are law, medicine, dentistry, optometry, architecture, engineering, teaching, and accounting. Job duties that require highly specialized knowledge of computer systems or software will not usually satisfy the duties test unless the. The california professional exemption a simple law guide. A new law on how to determine whether california workers are employees or independent contractors ics went into effect on january 1, 2020. Cea members can use the exempt analysis worksheetcomputer professional exemption to determine the applicability of this exemption. Therefore, this post turns to the computer professional exemption. 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. California introduces new compensation rate for computer. Computer professional exemption a california employee.
As discussed in a prior posting, californias wage and hour law makes a distinction between exempt and nonexempt employees, not salaried versus hourly employees. 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. Beginning january 1, 2016, to be exempt from californias overtime pay requirements under the computer professional overtime pay exemption codified in labor code 515. An employee in the computer software field who is paid on an hourly basis. Computer employee exemption about the flsa computer. Overtime and professional exemption for engineers in california. 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.