Salaried "Computer Professional" Exemption Simplified

As of September 30, 2008, exempt computer professionals in California can be paid a minimum of $75,000 per year for full-time employment on a salaried basis, rather than the previous requirement of at least $36 per hour. This welcome change eliminates a significant timekeeping burden, as employers can now treat computer professionals like other exempt, salaried employees.

Under prior law, exempt computer professionals had to be paid a minimum of $36 per each hour worked (or an annualized full-time salary equivalent). Regardless of whether employers chose to pay computer professionals by an hourly rate or by the annual salary equivalent, employers previously had to record the hours worked by computer professionals to ensure that each hour of worked was compensated at the minimum rate of $36. Failure to meet this minimum hourly rate for every hour worked would risk a loss of the exemption, and would result in possible claims for unpaid overtime, meal and rest period