The required compensation levels for employees exempt from overtime rate of pay requirements under the California computer software professional exemption will increase by 2.2 percent from current levels beginning January 1, 2015, the California Department of Industrial Relations (DIR) has announced.

This means that the minimum hourly rate of pay necessary to qualify for the exemption will increase from $40.38 to $41.27; the minimum monthly salary will increase from $7,010.88 to $7,165.12; and the minimum annual salary will increase from $84,130.53 to $85,981.40.  Employers are reminded that in addition to the salary requirement, California employees also must meet a stringent duties test to qualify for the exemption.

Jackson Lewis attorneys are available to answer questions about this and other exemptions available under federal and California laws and assist in assessing whether employees are correctly classified as exempt or non-exempt for overtime purposes.


© 2014 Jackson Lewis P.C. This Update is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between Jackson Lewis and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis.

This Update may be considered attorney advertising in some states. Furthermore, prior results do not guarantee a similar outcome.

Jackson Lewis P.C. represents management exclusively in workplace law and related litigation. Our attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies. For more information, please contact the attorney(s) listed or the Jackson Lewis attorney with whom you regularly work.

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Photo of Mitchell F. Boomer Mitchell F. Boomer

Mitchell F. Boomer is the office managing principal in the Austin, Texas, office and a principal in the San Francisco, California, office of Jackson Lewis P.C. Since joining the firm in 1992, he has represented employers in all areas of employment litigation, including…

Mitchell F. Boomer is the office managing principal in the Austin, Texas, office and a principal in the San Francisco, California, office of Jackson Lewis P.C. Since joining the firm in 1992, he has represented employers in all areas of employment litigation, including wrongful termination, employment discrimination, retaliation, whistleblower, trade secret and unfair competition cases in federal and state courts in California, Washington and Nevada.

Mitch regularly advises clients on employee discipline, layoffs, reductions in force, human resource policies, leave management and disability matters. Mitch frequently addresses private industry groups on a variety of employment topics, including sexual harassment in the workplace, unfair competition, workplace violence, wage and hour law, preventive employee relations, disability and leave management, and current developments in federal and state labor and employment law.