California Overtime Pay Affected By New California Law, Observes United Employees Law Group
Long Beach, CA (PRWEB) November 21, 2007 -- The United Employees Law Group has carefully examined the new proposed law for IT and Computer Overtime and believes that some impact will be felt by IT and computer workers in California.
"Since the year 2000, computer programmers and certain IT personnel have enjoyed the stringent exemption of California labor code 515. 5 relating to overtime. This may all be changing. With jobs leaving California, it appears the Governor has stepped in to assist computer companies," states Walter Haines, owner of United Employees Law Group, PC.
Arnold Schwarzenegger, Governor of California signed SB 929 which in part amends Labor Code Section 515.5, the California Computer Software Exemption. Under this new law, the hourly rate computer workers must be compensated to be exempt from overtime pay has been lowered.
Starting January 1, 2008, computer workers must receive at least $36.00 per hour and be primarily engaged in duties that meet the criteria as enumerated in California Labor Code 515.5. This law provides the sole exemption that permits computer workers in California to be paid an hourly wage and still be entitled to overtime pay. The Employer may elect to pay $36 per hour or the annual salary equivalent of $74, 880.00. Previously in 2007, the hourly rate to be exempt was $49.77 or below with a annual salary equivalent of $103,522.
It should be noted that the computation of salary is based on 40 hours per week. If a computer worker works in excess of 40 hours per week then the required salary would increase proportionately.
Under California law, the Labor Commissioner amend the minimum hourly rate annually based on the California Consumer Price Index for Urban Wage Earners and Clerical Workers, but under this amended statute, computer workers will need to take a step back in hourly rate in order to be considered non exempt and entitled to overtime starting on January 1, 2008.
Highly paid computer workers may wish to step forward prior to the new year to claim their back overtime pay, before its too late.
About United Employees Law Group
United Employees Law Group is a law firm based in Long Beach, California that assists employees in the recovery of overtime pay, compensation for meal and break periods and reimbursable expenses. The firm has assisted several hundred employees in the recovery of wages since 2003. For more information, please visit http://www.collectovertime.com
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