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New Hourly Rates for Software Workers and Physicians

New Hourly Rates for Software Workers and Physicians

Although most exempt employees must receive a set salary, computer software employees and licensed physicians/surgeons can receive an hourly wage and still be exempt from California’s overtime requirements.  The minimum hourly wages are set by the Department of Industrial Relations, and goes up every year.

On October 7, 2015, the DIR announced new hourly rates for software workers and physicians will take effect on January 1, 2016.

Computer Software Engineers

Effective January 1, 2016, the minimum hourly rates for computer software engineers will increase to $41.85 an hour, which is equivalent to $87,185 per year or $7,265.43 per month.

Licensed Physicians and Surgeons

Effective January 1, 2016, licensed physicians and surgeons must receive minimum hourly rate of $76.24 an hour.

Employees must still meet the “duties” test to be exempt from California’s overtime requirements.  The employees may be exempt under one or more of the other exemptions.

I have been representing employees and employers in unpaid wage claims, including unpaid overtime claims resulting from misclassification issues, for almost 20 years.  Failing to pay an employee the correct wage rate significantly reduces an employer’s ability prove an employee is exempt from California’s overtime requirements. Beginning January 1st, employers must pay the new hourly rates for software workers and physicians to meet California’s exempt requirements.

If you have questions about your exempt status or the status of your employees, contact the Nuddleman Law Firm, P.C.

Original article by Robert E. Nuddleman of Nuddleman Law Firm, P.C.

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