What’s the new California law concerning wages for computer professionals? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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What’s the new California law concerning wages for computer professionals?

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Q. We employ a number of computer programmers at our Northern California facility. Is there a new law regarding compensation for these exempt employees?

Yes. In September 2008, Gov. Arnold Schwarzenegger signed AB 10 into law as urgency legislation, amending the overtime exemption requirements for certain computer professions in Section 515.5 of the California Labor Code.

Section 515.5 allows employers to pay employees qualifying for the computer professional exemption either an hourly rate of $36 or a salary of $75,000. Computer professionals paid on a salary basis must be paid at least once per month and in a monthly amount of not less than $6,250.

Prior to this amendment, in order to be exempt, computer professionals had to be paid $36 for each hour worked (which meant employers had to keep track of their hours and pay them additional compensation if their salaries didn’t break down into at least $36 for each hour worked).

Employers can now avoid this timekeeping burden by paying the salary of $75,000. The amendment also reduces the total compensation required because no additional payment is needed where the employee works more than a regular workweek.

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