The employee is a trainee or an employee in an entrylevel position. Jan 02, 2020 the computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees. Job duties that require highly specialized knowledge of computer systems or software will not usually satisfy the duties test unless the. The courts narrowly construe the computer professional exemption. Correctly classifying it employees as exempt or nonexempt. As of january 1, 2020, california employers must ensure that. Also, employees who configure or maintain existing computer software will probably not be covered by the exemption. Texas minimum wage law does not exempt computer systems analysts, computer programmers, software engineers, or other similarly skilled workers from its minimum wage and overtime requirements. According to section a1 and section a17 of the flsa, computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field are exempt from minimum wage and overtime pay provided they also meet the other tests for. Nor does it include employees whose work is highly dependent upon the use of computers and computer software programs but whose primary duties are not the same as those listed above. California 2020 minimum salary requirement for exempt computer. State of california department of industrial relations. Nov 05, 2019 computer professionals must meet all legal requirements to be considered exempt.
To qualify for the computer employee exemption, the following tests must be met. State of california department of industrial relations office. Are information technology it specialists entitled to. The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems. Overtime exemption for computer software employees labor. Common issues with the computer employee exemption. Ca updates exemption for computer software employee expert. The computer professional employee exemption in california 2020. No exemption of this nature may be applied prior to october 1, 20. More specifically, the special computer employee exemption applies to workers who apply systems analysis techniques and procedures to determine hardware. Texas minimum wage and overtime exemptions employment law.
The computer software employee exemption does not apply to employees who primarily manufacture or repair computer hardware or equipment. The computer professional employee exemption in california. However convenient it may be, an employer may not classify an employee as a computer software employee just because the employees work involves computers. The state says that the exemption is not applicable to a computer software employee if any of the following criteria apply to his or her situation. On october 7, 2015, the california department of industrial relations dir announced that the exempt pay rate for computer software employees would increase on january 1, 2016. The computer professional exemption under the flsa. The special computer employees exemption does not include workers whose primary duties are manufacturing or repair of computer hardware, nor employees who are not primarily engaged in systems analysis, programming or software engineering even if their.
Fair labor standards act computer employee exemption. The computer professional exemption is a relatively new legislation that was added to california state law by s. Computer software employee exemption orange county. Isnt there an exemption that applies specifically to computer employees, you may ask. But, its a very narrow exemption, applicable only to employees who are involved in the application of systems analysis techniques or who develop or design software or operating systems or perform related functions.
This exemption applies to employees who work primarily in computer systems analysis, software or hardware design or computer system or program design or development, and of whom all of the following are true. Computer professionals must meet all legal requirements to be considered exempt. Amendment to computer software employee overtime exemption. Is your computer specialist exempt from receiving overtime. Computer employee exemption about the flsa computer exemption. Robbins, overtime exemption for computer software employees, department of industrial relations oct. Specifically, the courts generally require that to fall within the computer professional exemption an employees primary duty must require theoretical and practical application or highlyspecialized knowledge in computer systems analysis, programming and software. The computer professional employee exemption differs from the exemption that applies to scientists, engineers, and other professional employees. The computer professional exemption applies only when both tests are satisfied. Exemption for employees in computerrelated occupations under the fair labor standards act flsa this fact sheet provides information on the exemption from minimum wage and overtime pay for employees in computerrelated occupations provided by sections a1 and a17 of the flsa as defined under 29 c. They did not decide what software was loaded, or whether to update the software on a.
Texas law exempts professional employees from its minimum wage and overtime requirements. Overtime exemption for computer software employees california. Computer software employee exemption irvine labor laws attorney. Texas minimum wage and overtime exemptions employment. There are some additional exceptions to the computer employee exemption in california. Is the worker employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer. The employee is a trainee or employee in an entrylevel position who is learning to become proficient in the theoretical and practical application of highly specialized information to computer. When the duties of computer professionals are directly related to management policies or to the implementation of business operations, they may instead qualify for exemption as a salaried executive or administrative employees without holding an advanced degree.
Are you correctly classifying your computer employees as. Department of labors recently revised overtime regulations, federal law, commonly referred to as the fair labor standards act flsa, provides an exemption from both minimum wage and overtime pay for persons working as computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in. California 2020 minimum salary requirement for exempt. In july 2008, congress amended the flsa to reclassify certain people employed in computerrelated occupations as exempt. Also excluded, are employees whose duties heavily involve computers, but are not primarily engaged in computer systems analysis or programming. Dir increases minimum hourly rate for computer software employees. California introduces new compensation rate for computer. Employees must pass all three of the tests below to be exempt from flsa coverage. New compensation threshold for computer software overtime.
Because job titles vary widely and change quickly in the computer industry, job titles are not determinative of the applicability of this exemption. Which employees qualify for the flsa computer exemption. Computer employee exemption about the flsa computer. Feb 26, 2012 the computer professional exemption is a relatively new legislation that was added to california state law by s. The special computer employees exemption does not include workers whose primary duties are manufacturing or repair of computer hardware, nor employees who are not primarily engaged in systems analysis, programming or software engineering even if their jobs are highly dependent on using computers. Technical assistance for employers computer professionals. In addition to setting certain minimum wage requirements, the fair labor standards act flsa, in most circumstances, requires employers to pay all nonexempt employees an overtime rate of one and onehalf times the employee s regular hourly rate for each hour the employees work in excess of forty hours per workweek. California employers association 2020 exemption updates. Employers with exempt computer software employees in california should make sure that they will be paid at or above the new 2018 thresholds to maintain exempt status. What you may have to pay your it employees overtime. Californias department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption.
California announced 2019 exemption rates for computer. Apr 24, 20 network administrators whose work included installing and operating computer networks, analyzing hardware and software problems, testing, and problem solving did highlyskilled work, were not exempt employees under the pre2004 administrative exemption. California increases 2018 threshold for computer software. Misclassifying an employee as exempt when they do not meet all of the. Computer workers and flsa the online wages, hours and. Californias computer software employee exemption is mostly similar to flsas. Misclassifying an employee as exempt when they do not meet all of the eligibility criteria for the exemption can create significant liability for an employer in unpaid overtime, meal and rest. Californias department of industrial relations dir announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption. Note that the connecticut regulations do not include similar provisions for computer professionals, and the connecticut department of labor has not taken an. The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field. Are computer programmers and other hightech workers exempt. One of the criteria is that the employees hourly rate of pay is not less. California announces 2020 compensation rate for computer. The computer employee exemption includes, but is not limited to, computer systems analysts, computer programmers, software engineers or other similarly.
The california labor code also exempts certain computer software professionals from overtime and wagehour laws. Responsible for documenting, testing, creating or modifying computer programs related to the design of software or hardware for computer operating systems. The california department of industrial relations dir released its 20 hourly rate and minimum salary requirement adjustment for exempt computer software employees. Firms can now classify computer systems analysts, programmers and software engineers earning an. Flsa computer exemption test computer systems analysts, computer programmers, software engineers or other similarly skilled workers in the computer field are eligible for overtime exemption under the fair labor standards act flsa if theyre. Ca updates exemption for computer software employee. Jan 01, 2020 the california labor code also exempts certain computer software professionals from overtime and wagehour laws. Although computer professionals are generally understood to be employees with a certain degree of expertise in their field, the federal regulations specifically acknowledge that while such employees commonly have a bachelors or higher degree, no particular academic degree is required for this exemption. California overtime exemptions exempt vs nonexempt. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs e. What you may have to pay your it employees overtime the. Dir iwc computer software employees overtime exemption. Employees whose work is highly dependent upon, or facilitated by, the use of computer and computer software programs, but who do not work in computer systems analysis and programming occupations are. Effective january 1, 2020, a computer professional must receive a salary of.
Computer employee exemption flsa employment law handbook. The california department of industrial relations announced the new minimum salary threshold for exempt computer professionals. The federal regulations are clear that section a1 still applies to computer professionals, as computer systems analysts, computer programmers, software engineers or other similarly skilled workers in the computer field are eligible for exemption as professionals under section a1 of the act and under section a17 of the act. One of these criteria is that the employees hourly rate of. The computer professional employee exemption under the fair labor standards act flsa does not apply to a health care employers information technology it support specialists, who also are. A closer look at flsas computer professional exemption. Classifying computerrelated employees under california. Specifically, the courts generally require that to fall within the computer professional exemption an employee s primary duty must require theoretical and practical application or highlyspecialized knowledge in computer systems analysis, programming and software engineering not merely highlyspecialized knowledge of computers and software. These include systems analysts, programmers who write code, or software engineers. Network administrators whose work included installing and operating computer networks, analyzing hardware and software problems, testing, and problem solving did highlyskilled work, were not exempt employees under the pre2004 administrative exemption. Pay increase for exempt computer software employees. The dlsr has announced the applicable minimum rates for employees to qualify for californias computer professional exemption.