HR Management & Compliance

Wage And Hour: New Law Exempts Some Computer Software Professionals And Nurses From Overtime Pay Rules

Certain hourly computer software employees and salaried nurses are now exempt from California’s overtime rules under a measure Gov. Davis signed into law Sept. 20. The new law takes effect immediately.


The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.


4 Requirements For Computer Professionals

Previously, under the overtime rules in place since Jan. 1, 2000, only a select group of computer workers who also earned a salary of at least $1,993.33 per month were exempt.

Now hourly employees in the computer software field do not have to be paid overtime if four conditions are met. Note that job titles are not determinative:

  1. Highly skilled. Employees must be “highly skilled,” meaning they are proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming and software engineering.

     

  2. Minimum hourly rate. Workers must be paid a minimum of $41 per hour. This figure will be adjusted annually by the state for inflation.

     

  3. Independent judgment. They must spend more than half of their time on intellectual or creative tasks requiring discretion and independent judgment.

     

  4. Specific types of work. More than half of the employee’s time must be spent on work that involves: system analysis to determine hardware or software specifications; the design, development, testing or modification of computer systems or programs; or the documentation, testing, creation or modification of computer operating systems.

Other Computer Employees Still Entitled To Overtime

The new law excludes a number of computer-related occupations from the overtime exemption. You still must pay overtime to the following hourly employees:

  1. Trainees. Workers who haven’t reached the level of expertise necessary to work independently and without close supervision.

     

  2. Computer operators. Those who are engaged in the operation, manufacture or maintenance of computer hardware and related equipment.

     

  3. CAD users. Engineers, drafters and other professionals whose work is highly dependent on computer-aided design software.

     

  4. Special effects artists. Employees who create imagery for effects used in motion pictures, television or the theater.

     

  5. Writers. Authors of promotional materials, box labels, product descriptions, setup instructions and other documentation.

Certified, Specialized Nurses Exempt

Certain specialized nurses who are certified as nurse practitioners, nurse midwives or nurse anesthetists are now exempt, so long as they are acting in those capacities. However, registered nurses must be paid overtime unless they meet the criteria for exempt executive or administrative employees.

 

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