As of January 1, 2025, California employers must compensate their computer professional employees with an annual salary of $118,657.43 or more to be exempt from paying them overtime. If paid hourly, computer professionals must receive at least $56.97 an hour to be exempt.
In addition, these professionals must perform certain work duties to qualify as exempt employees. Examples of exempt computer professionals may include
- skilled computer programmers,
- computer systems analysts, and
- computer employees working within particular software system design specifications.
If an employer misclassifies a worker as a computer professional, the worker can recover unpaid wages by filing a wage theft claim with the California Labor Commissioner or a wage/hour lawsuit against the company.
Our California labor and employment lawyers will address the following in this article about the computer professional exemption:
- 1. Exemptions
- 2. Salary and Job Duties Tests
- 3. Misclassification
- 4. Federal Law
- Additional Resources
1. Exemptions
As exempt employees, computer professionals in California are not covered by the following employment laws and rights:
- state overtime requirements that authorize extra pay for excessive work,
- minimum wage rules that help provide for a minimum salary among workers (as determined by the California Consumer Price Index – CPI – for Urban Wage Earner and Clerical Workers), and
- laws ensuring employees can take a meal break or a rest period.1
In addition to computer professionals, the following are also exempt employees:
- professional employees,
- executive employees,
- outside salespersons, and
- administrative employees.
Certain computer professionals are exempt from California wage and hour laws.
2. Salary and Job Duties Tests
In California, you qualify as a computer professional – and therefore an exempt employee – if you pass both the salary test and the job duties test, discussed below.
Salary Test
According to this test, you get labeled a “computer professional” if you satisfy the job duties test, and:
- you make above a certain hourly wage or rate, or
- if paid a salary, you make above a certain annual salary basis or threshold.
As of 2025, computer professionals make at least $56.97 per hour or at least $118,657.43 a year (or $9,889.12 a month).2
Job Duties Test
Part 1 of the job duties test says that you qualify as a computer professional if you are:
- primarily engaged in intellectual or creative work that requires the exercise of discretion and independent judgment, and
- highly skilled and is highly proficient in the theoretical and practical application of highly specialized information to computer systems analysis, computer software programs, or software engineering.3
As to this last requirement, note that it cannot be met by job titles alone.4
Part 2 of the job duties test says that you are exempt if your primary duty consists of one or more of the following:
- the application of systems analysis techniques and procedures,
- the design, development, testing, or modification of computer systems or programs, and/or
- the documentation, creation, or modification of computer programs related to design software or computer hardware (or related equipment) for computer and machine operating systems.5
You must pass both part 1 and part 2 of the job duties test to be labeled a computer professional.
Sometimes management misclassifies a non-exempt employee as exempt.
3. Misclassification
Sometimes an employer will make a mistake and erroneously classify a worker as a computer professional. Other times, this misclassification may be done on purpose.
In any event, misclassifications often result in a worker losing out on overtime pay. California law says that non-exempt workers must receive time-and-a-half pay when they work:
- more than 8 hours in a day,
- more than 40 hours in a single workweek, and/or
- more than 6 days in a workweek.6
If your employer misclassifies you, you can file a claim with the California Labor Commissioner or file a wage and hour lawsuit against your employer. You may be able to recover unpaid wages as well as an hour of pay for each missed meal and rest break, plus interest.
4. Federal Law
The federal standards to qualify as an exempt computer professional are lower than in California. Under the federal Fair Labor Standards Act (FLSA), computer professionals must earn a minimum of only $27.63 per hour to be exempt.7
If you are working in California, state law applies.
Additional Resources
For more information, refer to the following:
- Fact Sheet #17E:Exemption for Employees in Computer-Related Occupations Under the Fair Labor Standards Act (FLSA) – Fact sheet by the U.S. Department of Labor.
- Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA) – Fact sheet by the U.S. Department of Labor.
- Overtime Exemption for Computer Software Employees – The California Department of Industrial Relations reveals the minimum salary where computer software employees become exempt workers.
- “Employee in the computer software field” – Definition by the California Department of Industrial Relations.
- FLSA Exemptions and the Computing Workforce – Article in the Hous. Law Review.
Legal References:
- See, for example, Labor Code 512. See also 8 CCR 11040. See also Effects of COVID-19 Pandemic and Response on the Consumer Price Index, U.S. Bureau of Labor Statistics.
- California Labor Code 515.5a4. Note that the wage rates used in the statute have not been amended yet to account for annual inflation rates. The California Department of Industrial Relations (DIR) increased the compensation threshold for exempt employees by 2.5% over the 2019 rates.
- California Labor Code 515.5a1 and 515.5a3. As to 515.5a3, see also Martin v. Indiana Michigan Power Co. (6th Cir. 2004) 381 F.3d 574.
- California Labor Code 515.5a3.
- California Labor Code 515.5a2.
- California Labor Code 510.
- 29 CFR 451.600(f).