On October 2, 2006, the California Department of Industrial Relations announced that effective January 1, 2007, in California the minimum hourly rate for computer software professionals will be $49.77 per hour.
In California, employers are recommended to establish time-keeping methods for computer professionals in order to ensure that employees are paid at the statutory rate for all hours worked.
Pursuant to California Labor Code Section 515.5, the eligibility for the computer professional overtime exemption in California is established by a duties test and a minimum hourly pay rate established annually by the California Division of Labor Statistics based on the consumer price index.
While employees may be paid a salary, the exemption for computer professionals under California Labor Code Section 515.5 is available only if the employee is paid the statutory rate for every hour worked. Employees must be paid $49.77 for each hour worked in excess of a standard 40 hour work week. The 2007 annualized full-time "salary" rate will be $103,521.60 (2,080 hours times $49.77 hourly rate).
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