The new year is bringing new pay requirements for exempt computer professionals in California.
State law allows certain computer software employees to be exempt from state overtime requirements if they receive a minimum hourly, monthly, or yearly pay rate. The required rates are based on the California Consumer Price Index for Urban Wage Earners and Clerical workers and are evaluated on a yearly basis, according to the Society for Human Resource Management (SHRM).
The index increased 2.6% between August 2011 and August 2012, so the California Division of Labor Standards Enforcement (DLSE) has announced increases to the minimum pay rates required for computer professionals to be considered exempt. Starting January 1, 2013, exempt computer professionals in California must make at least $39.90 per hour, up from last year's rate of $38.89, according to SHRM. For those paid monthly, the rate must be $6,927.75 or more, and annual salaries must be at least $83,132.93.
Keep in mind that even if your computer professional contractors are not in California, they must still receive a minimum hourly rate in order to be considered exempt.