Under California’s Division of Labor Standard Enforcement (DLSE), computer software employees are exempt from the state’s overtime pay requirements if they meet all the requirements for the exemption. One of the criteria is that the employee’s hourly rate is not less than the predetermined rates outlined by the Department of Industrial Relations. Each October, the DLSE publishes rates in the California Consumer Price Index (CCPI) to be effective on January 1 of the following year.
Effective January 1, 2022, the minimum wage for eligible computer software employees will increase to:
- $50.00 per hour;
- $8,679.16 per month; or
- $104,149.81 per year.
These above parameters reflect the 5.3% increase that was set forth by the CCPI for Urban Wage Earners and Clerical Workers.
Employers Next Steps
- Employers should review their exemption requirements and payroll records to ensure they are compliant with the updated parameters.
- If you are a Full-Service or Virtual HR client and would like our assistance with reviewing your exemption requirements, please email us.
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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.