California Computer Exemption - 2012

If you currently apply the overtime exemption under the California Computer Professional definition, be prepared for a cost increase in 2012. This exemption, which essentially allows companies to pay certain computer professionals on a salary basis if various criteria are met, is scheduled to see a 2.5% increase in the minimum salary requirement on January 1, 2012. This means that, in addition to the other requirements, you will need to pay your computer professional at least $81,026.25 next year in order to qualify, an increase of almost $2,000 over the current minimum. Of course, the cost to you as an employer is higher once you factor in payroll taxes and workers comp premiums on the additional pay, so it may be worth taking another look at the need for the exemption before committing to the pay increase. If your computer professional is working regular hours already, then you may not be getting much value out of paying him or her on a salary basis.

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