e-Alerts

e-Alert – California Increases Overtime Threshold for Computer and Medical Employee Exemptions

By December 20, 2019 No Comments

Background

Effective January 1, 2020, the minimum salary thresholds that computer employees, physicians, and surgeons must receive to qualify for the state’s overtime exemptions will increase. This update was published by the California Department of Industrial Relations (DIR).

Summary

What are the new thresholds?

  • The hourly wage rate for physicians and surgeons will increase from $82.72 per hour to $84.79 per hour.
  • The hourly wage rate for computer employees will increase from $45.41 per hour to $46.55 per hour.

In addition to the hourly threshold for computer employees, the DIR also increased the monthly salary threshold from $7,883.62 to $8,080.71 and the annual salary threshold from $94,603.25 to $96,968.33, which will also start on January 1, 2020.

Next Steps for Employers

  • For more information on the updated salary level for physicians and surgeons, click here.
  • For more information on the updated salary level for computer employees, click here.
  • If you are a Full-Service or Virtual HR client and have questions about this e-Alert, please email us.

The People Simplifying HR

For almost twenty years, HR Knowledge has made it our mission to demystify the complex and daunting process of HR management. We do more than just provide the level of service and technology you’d expect from an industry leader.

We combine an unparalleled passion for service with our decades of HR, payroll, and benefits experience to provide our clients with personalized and actionable advice that is second—to—none.

From managed payroll to employee benefits to HR support, we can help your organization thrive, grow, and reduce operating costs — no matter what industry you serve. Whether you’re interested in our Full-Service solution or just need your employee handbook written, HR Knowledge can help you minimize risk while staying on top of compliance regulations.

The bottom line? We’re not just another cloud-based technology company that also does HR, #WeAreHR.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

 

DOWNLOAD PDF