California Exemptions for Computer Software Professionals & Physicians Paid on an Hourly Basis
When it comes to wage and hour law, most employees are eligible for overtime compensation. However, some employees are "exempt" from accruing overtime pay. We generally think of employees who are professionals, managers or administrators paid a salary.
There are other exemptions under the law. In California, computer software professionals and also physicians and surgeons can be exempt from accruing overtime even if they earn an hourly rate of pay instead of a salary.
Each year, the Department of Industrial Relations establishes the minimum hourly figure a computer software professional and a physician must be paid to be considered exempt. For 2013, the hourly pay that must be provided to a computer professional to maintain the exemption is $39.90 which works out to annual compensation of $83, 132.93. For 2013, the hourly pay that must be provided to a physician or surgeon to maintain the exemption is $72.70.
Exemptions can be difficult issues. Contact usif you have questions about whether or not your employees are exempt. Misclassifying an employee as exempt can have serious adverse consequences for a business.