CALIFORNIA'S COMPUTER- RELATED EXEMPTION IS MODIFIED
California Labor Code Section 515.5 provides that employees in the computer software field who perform specific computer-related duties are exempt from the overtime requirements in Labor Code Section 510. In addition to a duties test, computer professionals must earn a statutorily specified minimum pay rate to be considered exempt. When Labor Code Section 515.5 was initially enacted, an employee had to earn at least $41.00 per hour to meet the exemption. Since its enactment, the Division of Labor Statistics and Research ("DLSR") has adjusted the rate on October 1 of each year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers. This adjustment has resulted in an increase in the hourly rate every year. As of January 1, 2007, the minimum rate for the exemption was $49.77 per hour.
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