Computer Software Employees and Physicians Overtime Exemption Rates for 2023 | Jackson Lewis CP
For an employee to be deemed exempt from overtime regulations under California law, the employee must belong to a deemed-exempt job category. The most common exemption is the administrative exemption, which includes workers who perform administrative, managerial, managerial or professional functions. There are also detailed requirements for the amount of work done in certain areas and most employees must also meet a minimum wage threshold, which for most exempt categories is not less than twice the minimum wage of the state for a full-time job (40 hours).
However, for certain exempt categories, the Department of Industrial Relations (DIR) sets the minimum monthly wage based on increases in the California Consumer Price Index for Urban and Clerical Employees (CPI). Under section 515.5 of the Labor Code, certain computer software employees are among the occupations that must be paid at a rate specified by law to be considered exempt from overtime regulations.
Effective January 1, 2023, the minimum hourly rate for computer software employees to satisfy the exemption will be $53.80with a minimum monthly salary of $9,338.78 (annually $112,065.20). Current rates are $50.00 per hour, $8,679.16 minimum monthly wage and $104,149.81 per year.
Similarly, under section 515.6 of the Labor Code, certain licensed physicians and surgeons must be paid at a rate specified by law to be considered exempt from overtime regulations. Effective January 1, 2023, the minimum hourly rate for licensed physicians and surgeons to satisfy the exemption will be $97.99. The current hourly rate is $91.07