California Computer Professional Exemption

As of September 2000, the State of California recognizes an hourly "computer professional exemption" for certain employees in the computer software field. If the employer cannot show that all of the requirements below are met, the employee is non-exempt and therefore is entitled to overtime pay and other benefits. Such employees can recover wages going back three years (and in some cases four years) from the date a complaint is filed.

A computer software field employee is exempt from overtime pay if all of the following requirements are met:

(1) The employee is primarily engaged in work that is intellectual or creative and that requires the exercise of discretion and independent judgment; AND

(2) The employee is primarily engaged (spends more than half his or her time) in duties that consist of one or more of the following:

(A) The application of systems analysis techniques and procedures including consulting with users to determine hardware, software, or system specifications.

(B) The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications.

(C) The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems. AND

(3) The employee is highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering; (Job title not determinative) AND

(4) The employee's hourly rate of pay is not less than $36.00 per hour for every hour worked. (In 2007, the minimum hourly rate was $49.77.)

If the employer cannot show ALL of the above, the employee is non-exempt and entitled to overtime pay and other benefits. As mentioned, such employees can recover wages going back three years (and in some cases four years) from the date a complaint is filed.

Under California law, the Computer Software Professional Exemption does NOT apply to:

• Trainees or entry-level employees who are learning to become proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering;
• Employees in computer-related occupations who have not attained the skill and expertise necessary to work independently and without close supervision;
• Employees who are engaged in operation of computers or in the manufacture, repair, or maintenance of computer hardware and related equipment;
• Engineers, drafters, machinists or other professionals whose work includes the use of computers or computer software programs and who are skilled in computer aided design software such as CAD/CAM but who are not in a computer systems analysis or programming occupation;
• Employees who write material related to computers for print or on-screen media or who write or provide content for computer related media such as the World Wide Web or CD- ROMS; and
• Employees who create imagery for effects used in the motion picture, television, or theatrical industry.

Related Information and Employment Issues for Computer & Hi-Tech Professionals

• California Computer Professional Exemption
• Hourly Computer Professionals
• Salaried Computer Professionals
• California Salaried Worker Overtime Exemptions
• Federal Computer Professional Exemption
• Wage Violations: Computer Professionals