California Revises Overtime-Exempt Minimum Hourly Rates « Law Offices of Timothy Bowles | Top Employment Law Firm in Los Angeles

California Revises Overtime-Exempt Minimum Hourly Rates

For Computer Professionals and M.D.s

Effective January 1, 2017

 

California Labor Code sections 515.5 and 515.6 exempt certain computer software professionals and licensed physicians and surgeons from overtime compensation as long as they receive at least certain specified minimum hourly rates of pay.

As we recently covered in Overtime – Exempt Physicians and Surgeons Minimum Hourly Rate Increases Are Near and Computer Software Professional Overtime Exemption Requirement, these rates were to increase January 2017 from $76.24 to $77.23 (physicians) and from $41.85 to $42.39 (computer software professionals).

However, by an October 25, 2016 announcement California’s Department of Industrial Relations (DIR) has revised those post-2016 rates: (a) a minimum equivalent of $77.15 per hour for eligible physicians and surgeons (an eight cent reduction); and (b) a minimum hourly rate of $42.35 for otherwise-qualified computer software employees (a four cent reduction). Alternatively, an otherwise-qualified software employee paid by salary is eligible on minimum annual compensation of $88,231.36, payable at least once monthly at no less than $7,352.62.

For more information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.

Cindy Bamforth

updated, revised December 3, 2016