California employers must ensure that compensation rates for computer professionals meet new salary thresholds, effective January 1, 2023.
As inflation continues to rise, so too have the minimum wage thresholds for the California Computer Professional exemption. [1] Indeed, the California Department of Industrial Relations (DIR) published a memo on October 14, 2022, increasing the compensation threshold for exempt computer professionals by 7.6%, compared to the 2022 rates. The compensation rates are adjusted annually to account for inflation according to the California Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers. [2]
To qualify for the California computer professional exemption, starting January 1, 2023, California employers must pay their computer professional employees a salary of at least $112,065.20 annually ($9,338.78 monthly) or an hourly wage of $53.80 every hour worked. [3]
In addition to the increased salary requirement, a California computer professional must also still satisfy the duties test set forth under California Labor Code Section 515.5, which remains unchanged. The California computer professional employee’s primary responsibilities must include at least one of the following:
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