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California Computer Exemption Modified – Again

On September 30, 2008, Governor Schwarzenegger signed AB 10 which modifies Labor Code Section 515.5 – the statute that exempts computer software field employees from the overtime requirements of California law.  Last year the “Governator” signed SB 929 which reduced the hourly rate computer workers must earn in order to be exempt from the overtime regulations of California law from $49.77 per hour to $36.00 per hour.  Prior to passing AB 10, employers could pay computer software workers $36.00 per hour or the salary equivalent: $74,880.00. The new law, which is effective immediately, requires employers to either pay the $36.00 per hour rate or a salary of $75,000.00 per year, in no less than monthly payments of $6,250.00 per month.

I’m not sure why the Governor would sign a bill that requires employers to pay computer software workers $220.00 more per year than previously required.  As with the hourly rate, the Labor Commissioner will continue to increase the minimum salary for computer workers each year based on the California Consumer Price Index for Urban Wage Earners and Clerical Workers.

The Law Office of Phillip J. Griego
95 South Market Street, Suite 520
San Jose, CA 95113
Tel. 408-293-6341
Original article by Robert E. Nuddleman, former associate of The Law Office of Phillip J. Griego.

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Phillip J. Griego represents employees and businesses throughout Silicon Valley and the greater San Francisco Bay Area including Palo Alto, Menlo Park, Mountain View, Los Altos, San Jose, the South Bay Area, Campbell, Los Gatos, Cupertino, Morgan Hill, Gilroy, Sunnyvale, Santa Cruz, Saratoga, and Alameda, San Mateo, Santa Clara, San Benito, Mendocino, and Calaveras counties.