HR Alert

California Releases 2018 Overtime Exemption Rates for Certain Computer Software Employees and Certain Licensed Physicians and Surgeons

New Rates Effective January 1, 2018

California has released the 2018 overtime exemption rates for certain computer software employees and certain licensed physicians and surgeons.

Exemption Rates
Effective January 1, 2018, an exemption from state overtime requirements applies to certain computer software employees whose compensation is at least $43.58 per hour, or, if paid on a salaried basis, at least $90,790.07 annually for full-time employment paid at least $7,565.85 a month. Also beginning January 1, 2018, certain licensed physicians and surgeons whose compensation is at least $79.39 per hour are exempt from state overtime requirements.

Background
The California Labor Code (Sections 515.5 and 515.6) provides that certain computer software employees and certain licensed physicians and surgeons are exempt from state overtime requirements in Labor Code Section 510 if certain criteria are met. One of the criteria is that the employees' rates of pay meet or exceed the rates specified by the state. Each year these rates are adjusted for inflation.

Employers may review the announcements concerning computer software employees and licensed physicians and surgeons for more information.


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