Effective January 1, 2022, the California Department of Industrial Relations issued a brand new compensation threshold for exempt pc software program staff, reflecting a rise of 5.3% from final yr.
To qualify for the extra time exemption, pc software program staff should be paid a wage of no less than $104,149.81 yearly ($8,679.16 month-to-month), or an hourly wage of no less than $50.00. In addition, a pc software program worker should additionally meet the duties take a look at set forth in California Labor Code Section 515.5, that are additionally included in all Wage Orders besides Orders 14 and 16.
More particularly, the worker should be primarily engaged in work that’s mental or inventive and that requires the train of discretion and impartial judgment. Job titles don’t decide of the applicability of this exemption. Rather, the Labor Code and Wage Orders state that the pc software program worker’s duties should primarily include a number of of the next:
(A) The utility of programs evaluation methods and procedures, together with consulting with customers, to find out {hardware}, software program, or system useful specs.
(B) The design, improvement, documentation, evaluation, creation, testing, or modification of pc programs or applications, together with prototypes, based mostly on and associated to person or system design specs.
(C) The documentation, testing, creation, or modification of pc applications associated to the design of software program or {hardware} for pc working programs.
The pc software program worker should even be extremely expert and proficient within the theoretical and sensible utility of extremely specialised data to pc programs evaluation, programming, or software program engineering.
The exemption doesn’t apply to an worker who’s a trainee or worker in an entry-level place who’s studying to turn out to be proficient within the theoretical and sensible utility of extremely specialised data to pc programs evaluation, programming, and software program engineering. Nor does the exemption apply to somebody who has not but attained the extent of talent and experience essential to work independently and with out shut supervision. Persons engaged within the operation of computer systems or within the manufacture, restore, or upkeep of pc {hardware} and associated tools should not eligible for the exemption. Other sorts of staff, reminiscent of engineers, drafters, machinists, or different professionals whose work is very dependent upon or facilitated by means of computer systems and pc software program applications and who’re expert in computer-aided design software program, together with CAD/CAM, however who should not engaged in pc programs evaluation, programming, or some other equally expert computer-related occupation, are equally not eligible for the pc software program exemption to extra time, though different exemptions might apply. Similarly, writers engaged in writing field labels, product descriptions, documentation, promotional materials, setup and set up directions, both for print or for onscreen media that’s computer-related don’t fall underneath this exemption. Persons who create imagery for results used within the movement image, tv, or theatrical trade, who would possibly in any other case meet the duties take a look at are singled out for exclusion by the Labor Code and Wage Orders.
The improve is required by Labor Code Section 515.5 (4), which imposes annual changes to this threshold based mostly on will increase within the California Consumer Price Index for Urban Wage Earners and Clerical Workers.
The creator want to gratefully acknowledge the help of Joanne Warriner.
