January 18, 2022

Volume XII, Number 18

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Computer Software Employees and Physicians Overtime Exemption Rates for 2022

For an employee to be deemed exempt from overtime regulations under California law, the employee must fit into a category of work that is deemed exempt. The most common exemption is the administrative exemption, which includes workers who are employed in administrative, managerial, executive, or professional capacities. There are detailed requirements as to the amount of work performed in certain areas and most employees must also meet a minimum salary requirement, which for most of the exempt categories, is no less than two times the state minimum wage for full-time employment (40 hours).

However, for certain exempt categories, the Department of Industrial Relations (DIR) sets the minimum monthly salary based on increases to the California Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI). Under Labor Code section 515.5, certain computer software employees are one of the professions that must be paid a statutorily specified rate in order to be deemed exempt.

Effective January 1, 2022, the minimum hourly rate for computer software employees to meet the exemption will be $50.00, with the minimum monthly salary of $8,679.16 (annually $104,149.81). The current rates are $47.48 per hour, $8,242.32 monthly, and $98,907.70 annually.

Similarly, Under Labor 515.6, certain licensed physicians and surgeons must be paid a statutorily specified rate in order to be deemed exempt.  Effective January 1, 2022, the minimum hourly rate for licensed physicians and surgeons to meet the exemption will be $90.07.  The current hourly rate is $86.49.

Jackson Lewis P.C. © 2022National Law Review, Volume XI, Number 306
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About this Author

Nicole M. Shaffer Employment Attorney Jackson Lewis Orange County
Principal

Nicole M. Shaffer is a principal in the Orange County, California, office of Jackson Lewis P.C. Her practice is focused on employment litigation on behalf of management as well as advice and counsel on a wide array of employment law issues.

Nicole has litigated single and multi-plaintiff cases, in both state and federal courts and in arbitration, as well as before state administrative agencies, on virtually all aspects of employment law from wage and hour to harassment, discrimination, retaliation, and wrongful termination...

949-885-1370
Stephanie Joy M. Tañada Attorney Employment Law Jackson Lewis Orange County
Associate

Stephanie Joy M. Tañada is an associate in the Orange County, California, office of Jackson Lewis P.C.

Her practice focuses on representing employers in workplace law matters, including litigation, preventive advice, and counseling. While attending law school, Stephanie was a member of the Florida State University Law Review.

949-885-1360
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