California Employment Law Update – October 2016

California

Overtime Exemption Increases for Computer Software Employees and Physicians Effective January 1, 2017

On October 5, 2016, the California Department of Industrial Relations released a memorandum announcing the hourly rate adjustment for computer software employees and licensed physicians and surgeons to qualify as overtime exempt under Cal. Labor Code Ann. § 515.5 and § 515.6. Effective January 1, 2017, the minimum hourly rate for computer software employees increases to $42.35 per hour, $7,352.62 per month, and $88,231.36 per year; and the minimum hourly rate for licensed physicians and surgeons increases to $77.15.

The new rates are effective January 1, 2017.

Read Memo re: Physicians and Memo re: Computer