CA Labor Code Section 515.5

SB 88: Computer-Related Occupation Exemption

California law requires that an employee in the computer software field be exempt from the requirement that an overtime rate of compensation be paid if the job entails primarily high-level functions and the worker is paid the hourly rate set each year by the California Division of Labor Statistics based on California consumer Price Index data.

AB 1093, effectively Jan. 1, 2006, amends the Labor Code Sec. 515.5 exemption criteria to require that employee be paid either the hourly rate or the annualized full-time salary equivalent of the that rate, provided that all the other regiments for exemption are met and that in each work week the employee receives not less than specified hourly rate per hour worked.

The hourly rate in 2005 was $45.84; the hourly rate for 2006 is $47.81.

(a) Except as provided in subdivision (b), an employee in the computer software field shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Section 510 if all of the following apply:

  1. Primarily engaged (more than 50 percent), in work that is intellectual or creative and that requires the exercise of discretion and independent judgment

  2. Primarily engaged in duties that consist of one or more of the following:

    • Application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional application;

    • Design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; and

    • Documentation, testing, creation or modification of computer programs related to the design of software or hardware for computers operating systems;

  3. Highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming and software engineering.

(b) The exemption provided in subdivision (a) does not apply to an employee if any of the following apply: ...

  1. The employee is a writer engaged in writing material, including box labels, product descriptions, documentation, promotional material, setup and installation instructions, and other similar written information, either for print or for onscreen media or who writes or provides content material intended to be read by customers, subscribers, or visitors to computer-related media such as the World Wide Web or CD-ROMs.

References:

How to Determine Who Must Be Paid Overtime In California

CA Labor Code Section 500-558