Wednesday, December 19, 2012

Hourly Rate of Pay for Computer Software Professionals and for Physicians

When it comes to wage and hour law, most employees are eligible for overtime compensation.  However, some employees are "exempt" from accruing overtime pay.  We generally think of exempt employees as professionals, managers or administrators who are paid a salary. 

There are other exemptions under the law.  In California, computer software professionals and also physicians and surgeons can be exempt from accruing overtime even if they earn an hourly rate of pay instead of a salary. 

Each year, the Department of Industrial Relations establishes the minimum hourly figure a computer software professional and a physician must be paid to be considered exempt.  The hourly pay that must be provided to a computer professional to maintain the exemption is $39.90 which works out to annual compensation of $83, 132.93.  The hourly pay that must be provided to a physician or surgeon to maintain the exemption is $72.70. 

Exemptions can be difficult issues.  Email me if you have questions about whether or not your employees are exempt. 

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