California Clarifies Overtime Exemption for Computer Professionals (Labor Code 515.5)

On September 30, Governor Schwarzenegger signed Assembly Bill 10 (AB 10), which clarifies California Labor Code section 515.5’s exemption for computer professionals paid on a salaried basis.

In addition to clarification on the salary basis, the provisions of AB 10 provide clarification of the skills test in 515.5(a)(3), to require that an employee possess skill in one of three disciplines—computer systems analysis, programming, or software engineering—not all three. Finally, the bill makes a technical clarification to the exception in 515.5(b)(4) applicable to employees who use computer-aided design software.

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