California Amends Computer Software Professional Overtime Exemption, Adds Salary Requirement 


California Governor Arnold Schwarzenegger signed legislation on September 30 amending overtime exemption requirements for employees in the computer software field to add an annual salary limit. Existing law exempts professional employees in the computer software field from overtime compensation requirements if the employee is primarily engaged in work that is intellectual or creative, the employee's hourly rate of pay is not less than $36, and the employee meets other requirements under the law. This law is amended to provide that the overtime exemption for employees in the computer software field applies if the employee is paid at an hourly rate of not less than $36 and, if the employee is paid on a salaried basis, the employee earns an annual salary of not less than $75,000 for full-time employment, which is paid at least once a month and in a monthly amount of not less than $6,250. This law takes effect immediately (Ch. 753 (A.B. 10), L. 2008, effective September 30, 2008, amending California Labor Code Section 515.5).

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