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ARTICLE · 07 OCTOBER 2008

Legislative Swiftware On Software Engineers: AB 10 Revises The Overtime Pay Exemption For Some California Computer Software Engineers

Littler Mendelson
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California, which nurtured Silicon Valley into a global phenomenon, has finally acted to stem the off-shoring of computer jobs by simplifying and reducing the compensation requirement for overtime-exempt computer professionals.

United StatesEmployment and HR
R. Dixon
R. Dixon
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California, which nurtured Silicon Valley into a global phenomenon, has finally acted to stem the off-shoring of computer jobs by simplifying and reducing the compensation requirement for overtime-exempt computer professionals. The new legislation, contained in Assembly Bill (AB) 10, which took effect on September 30, 2008, as urgency legislation, may also stem the outpouring of computer jobs from California to other states by substantially harmonizing the duties requirements of the overtime exemption with those under federal law and under the laws of most other states.

The Pre-AB 10 Computer Software Professional Overtime Exemption

According to the most recent estimate from the U.S. Department of Labor's Bureau of Labor Statistics, there are approximately 218,000 computer engineers, programmers and analysts in the fields of applications and systems software employed in California who are entitled to overtime unless they are covered by Labor Code section 515.5's

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