Overtime exemption for Calif. computer software employees to remain the same in 2010
The overtime exemption rate for computer software employees in California will remain unchanged for the period beginning January 1, 2010, the California Department of Industrial Relations has announced.
In accordance with Labor Code Section 515.5 (a)(4), the Division of Labor Statistics and Research has maintained the same computer software employee's minimum hourly rate of pay exemption of $37.94, the monthly salary exemption of $6587.50, and the minimum annual salary exemption of $79,050.00, effective January 1, 2010, reflecting the absence of an increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers (Source: State of California, Department of Industrial Relations, Division of Labor Statistics and Research, Memorandum dated November 3, 2009, from Gregory Govan, DLSR Chief, to John C. Duncan, DIR Director).
The Computer Software Employee Exemption statute, Labor Code Section 515.5, and the Physician and Surgeon Employee Exemptions statute, Labor Code Section 515.6, both use language that requires that the Division of Labor Statistics and Research to annually modify the rate by the "percentage increase" in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.
For the period August 2008 (220.946) to August 2009 (217.743), the CCPI reflects a minus 1.4% change. Because there has been no increase in this index for the measurement period specified by both statutes the rates specified in each will remain unchanged for the period beginning January 1, 2010.
California Labor Code Section 515.5 provides that certain computer software employees are exempt from the overtime requirements stipulated in Labor Code Section 510 if certain criteria are met.
One of the criteria is that the employee's hourly rate of pay is not less than the statutorily specified rate, which the Division of Labor Statistics and Research is responsible for adjusting on October l of each year to be effective on January l of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.
Assembly Bill 10 (Committee on Budget, Chapter 753, Statutes of 2008) amended Labor Code Section 515.5 effective on September 30, 2008, to extend the exemptions to salaried employees whose annual and monthly salaries are not less than the statutorily specified rates, which the Division of Labor Statistics and Research is responsible for adjusting on October l of each year to be effective on January l of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.
Reprinted with permission. © CCH
<p>Overtime exemption for Calif. computer software employees to remain the same in 2010 The overtime exemption rate for computer software employees in California will remain unchanged for the period beginning January 1, 2010, the California Department of Industrial Relations has announced.</p>
Overtime exemption for Calif. computer software employees to remain the same in 2010
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