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California Announced 2019 Exemption Rates for Computer Software and Licensed Professional

EverythingHR Staff | 11/01/2018 | Blog

Photo by Sharon McCutcheon on Unsplash

By: Robert Campbell, Senior Consultant & Law Librarian

The California Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemptions. The new rates take effect January 1, 2019.

The minimum hourly rate of pay for computer software professionals increased from $43.58 to $45.41, the minimum monthly salary exemption increased from $7,565.85 to $7,883.62, and the minimum annual salary exemption increased from $90,790.07 to $94,603.25. For the licensed physicians and surgeons employee’s the minimum hourly rate of pay for exemption increased from $79.39 to $82.72. These compensation rates are adjusted annually for inflation according to the California Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers.

The California minimum wage will also increase on January 1, 2019. This will affect the professional, executive, and administrative exemption. Individuals in these classifications must be paid at least two times the state minimum wage, in addition to meeting the required duties test.