| Update Applicable to: | Effective date |
| All covered employers | January 1, 2025 |
What happened?
The Department of Industrial Relations (DIR) announced an increase in the overtime exemption for Computer Software and Licensed Physicians and Surgeons.
Quick Summary:
- The California Department of Industrial Relations announced updated pay rates for 2025 that computer software employees and licensed physicians must meet to be exempt from overtime.
What are the details?
- The California Department of Industrial Relations (DIR) will update the overtime exemption rates for computer software employees and licensed physicians starting January 1, 2025.
- Computer Software Employees: To qualify for the overtime exemption, these employees must earn at least $56.97 per hour, $9,888.13 per month, or $118,657.43 annually.
- This is an increase from the previous rates of $55.58 per hour, $9,646.96 per month, and $115,763.35 annually.
- Additional requirements must be met to be classified as an exempt computer professional.
- Physicians and Surgeons: To meet the exemption criteria, licensed physicians and surgeons must be paid a minimum hourly rate of $103.75, up from $101.22.
These rates are adjusted based on changes to the California Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI).
Business Considerations
- Employers should conduct a payroll audit and budget analysis to prepare and make the appropriate increases to affected workers.
Source References
- DIR Overtime Exemption for Computer Software Employees Announcement
- DIR Overtime Exemption for Licensed Physicians and Surgeons Announcement
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