Updated December 6, 2025
What is Computer Professional Exemption California?
The Computer Professional Exemption in California is a statutory provision under California Labor Code Section 515.5 that exempts certain computer software professionals from the state's overtime pay requirements [1]. This exemption applies to computer professionals who meet specific criteria regarding their job duties and compensation levels.
Under this provision, qualifying computer professionals are not entitled to overtime pay as stipulated in Labor Code Section 510, regardless of how many hours they work [1]. To qualify for this exemption, employees must satisfy two distinct tests: the compensation test and the job duties test [2].
The compensation test requires that computer professionals receive pay at or above thresholds that are adjusted annually based on the California Consumer Price Index for Urban Wage Earners and Clerical Workers [1]. For 2025, exempt computer professionals must earn at least $118,657.43 annually ($9,888.13 monthly) or an hourly wage of at least $56.97 [3]. These rates represent a 2.5% increase from 2024 levels [2].
Additionally, the job duties test mandates that the employee must be primarily engaged in intellectual or creative work requiring the exercise of discretion and independent judgment [4]. Furthermore, the employee must be highly skilled and proficient in the theoretical and practical application of specialized information related to computer systems analysis, programming, or software engineering [1].
The professional's primary duties must include at least one of the following:
- Application of systems analysis techniques and procedures to determine specifications
- Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
- Documentation, testing, creation, or modification of computer programs related to software or hardware design [2]
Specifically, "primarily engaged" means the employee performs these duties at least 51% of their time each workweek [2]. The exemption applies exclusively to a narrow segment of computer professionals and generally does not extend to those in general information technology roles, even high-level positions [2].
Unlike the federal Fair Labor Standards Act (FLSA), which requires computer professionals to earn at least $27.63 hourly, California's standards are significantly higher and more stringent regarding both compensation and duties [2]. Moreover, California does not permit bonuses or commissions to count toward meeting the minimum salary threshold for exempt status [1].
Who qualifies under the exemption?
To qualify under the California computer professional exemption, employees must satisfy both a compensation test and a job duties test simultaneously. These requirements are substantially more stringent than federal standards and must be met precisely for the exemption to apply.
The compensation test mandates that computer professionals receive pay at or above specified thresholds. For 2025, these professionals must earn at least $118,657.43 annually, $9,888.13 monthly, or $56.97 hourly [2]. These rates are adjusted annually based on changes in the California Consumer Price Index.
The job duties test consists of two essential parts. First, the employee must be:
- Primarily engaged in intellectual or creative work requiring discretion and independent judgment [5]
- Highly skilled and proficient in the theoretical and practical application of specialized information related to computer systems analysis, programming, and software engineering [2]
Second, the employee's primary duties must include one or more of the following:
- Application of systems analysis techniques and procedures, including consulting with users to determine hardware, software, or system functional specifications [2]
- Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs based on user or system design specifications [2]
- Documentation, testing, creation, or modification of computer programs related to software or hardware for computer operating systems [2]
In this context, "primarily engaged" means performing these qualifying duties for at least 51% of the workweek [6]. Consequently, the exemption applies exclusively to a narrow segment of computer professionals.
The exemption explicitly excludes certain workers, even if they use computers extensively:
- Trainees or entry-level employees still learning to become proficient [5]
- Employees without sufficient skill to work independently without close supervision [5]
- Computer operators or those engaged in hardware manufacturing, repair, or maintenance [5]
- Engineers, drafters, machinists whose work depends on computers but who aren't in programming or systems analysis roles [5]
- Content writers for print or digital media, including documentation writers [5]
- Those creating visual effects for entertainment industries [5]
Job titles alone are not determinative for the exemption [5]. Therefore, although someone may hold the title of "programmer" or "systems analyst," employers must verify that the actual job duties meet all exemption criteria. Likewise, the exemption typically doesn't apply to general IT roles, notwithstanding their level within the organization [6].
How much must you earn to be exempt?
California's computer professional exemption includes specific compensation requirements that employers must meet to classify their employees as exempt. These salary thresholds are updated annually through a mechanism tied to economic indicators.
2025 salary thresholds
For 2025, computer professionals must receive compensation at or above specific thresholds to qualify for the exemption. Employers must pay these professionals at least $56.97 per hour [7], $9,888.13 per month [8][3], or $118,657.43 annually [7][3] to maintain their exempt status. This represents a 2.5% increase from the 2024 rates [3].
For comparison, the 2024 thresholds were $55.58 per hour, $9,646.96 per month, and $115,763.35 annually [9][10]. This historical data illustrates the consistent upward adjustment of these thresholds over time:
| Year | Hourly Minimum | Monthly Minimum | Annual Minimum |
|---|---|---|---|
| 2025 | $56.97 | $9,888.13 | $118,657.43 |
| 2024 | $55.58 | $9,646.96 | $115,763.35 |
| 2023 | $53.80 | $9,338.78 | $112,065.20 |
It is essential to note that these thresholds are substantially higher than both standard exempt employee requirements and federal standards for computer professionals. As a point of reference, standard exempt employees in California (those under administrative, executive, or professional exemptions) must earn at least $68,640 in 2025 [8], which is calculated as twice the state minimum wage for full-time employment.
How the CPI affects annual updates
The California Department of Industrial Relations (DIR) adjusts these compensation thresholds annually based on changes in the California Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) [11][10]. This mechanism ensures the exemption requirements keep pace with inflation and economic conditions in the state.
According to Labor Code Section 515.5, the DIR is responsible for determining these adjustments on October 1st of each year, with the new rates becoming effective on January 1st of the following year [12]. The percentage increase directly corresponds to the increase in the California CPI-W.
For instance, the increase from 2025 to 2026 will be 3.3%, raising the minimum hourly rate to $58.85, monthly salary to $10,214.44, and annual salary to $122,573.13 [12][13]. This adjustment reflects the change in the CPI-W from August 2024 (331.734) to August 2025 (342.673) [12].
This automatic annual adjustment mechanism helps ensure that exempt status remains appropriately compensated as economic conditions change throughout California. Employers must carefully track these annual updates since failing to meet the new thresholds could result in employees losing their exempt status.
Which job roles qualify and which don’t?
Job roles eligible for the computer professional exemption in California fall into specific categories based on the statutory language in Labor Code Section 515.5. Understanding which positions qualify helps employers properly classify employees and avoid costly misclassification issues.
Common qualifying roles
Certain technology positions typically meet the exemption criteria when they involve high-level analysis, design, or development work. Software engineers who develop applications or systems architecture often qualify, particularly those creating complex algorithms or designing intricate software systems. Systems analysts conducting detailed technical evaluations and designing solutions based on user requirements frequently satisfy the exemption standards. Database architects who design complex data structures and relationships while exercising independent judgment in their work may also qualify. Additionally, specialized developers working on operating systems, network security protocols, or complex enterprise applications commonly fall within the exemption parameters.
Common non-qualifying roles
Despite working extensively with computers, numerous IT roles fail to meet the exemption criteria. Help desk specialists and technical support staff primarily troubleshooting routine issues rarely qualify, as these positions typically lack the required creative or analytical components. Network administrators whose primary responsibilities involve maintaining existing systems rather than developing new ones usually do not meet the exemption standards. Quality assurance testers performing basic verification procedures without substantial analytical work are generally non-exempt. Furthermore, data entry personnel, computer operators managing scheduled processes, and hardware technicians primarily engaged in installation or repair work fall outside the exemption regardless of technical expertise.
Why job title alone doesn't matter
The actual duties performed, rather than job titles, determine exemption eligibility under California law. A position labeled "Developer" might not qualify if the role primarily involves maintaining legacy code without substantial intellectual or creative work. Conversely, a "Technical Consultant" might qualify when designing complex systems requiring advanced analysis. California courts consistently examine the actual day-to-day tasks performed rather than relying on organizational hierarchies or impressive job titles. Hence, employers must conduct thorough job analyzes focused on the specific duties performed, the percentage of time dedicated to exempt tasks, and whether the position truly requires independent judgment and discretion as defined in the statute.
What happens if you're misclassified?
Misclassification of employees under the computer professional exemption in California carries serious financial and legal consequences. Employers who improperly classify workers as exempt when they don't meet all qualification criteria face substantial liability.
Unpaid overtime and penalties
Improperly classified employees are entitled to unpaid overtime wages at 1.5 times their regular rate for hours worked beyond 8 in a day or 40 in a week, and double pay for hours over 12 in a day [2]. The financial impact typically includes:
- Meal and rest break premiums for each day these breaks were denied [10]
- Penalties for inaccurate wage statements issued to misclassified workers [10]
- Waiting time penalties of up to 30 days of pay [10]
- Interest on back pay calculated from when wages were originally due [2]
Wage theft through misclassification is among the most common violations of overtime law [14]. These violations frequently occur when employers label computer professionals as exempt without ensuring they meet both the compensation test and duties test simultaneously [15].
Legal rights and back pay
Misclassified employees have several legal avenues for recovery. The statute of limitations allows employees to recover up to three years of unpaid wages under California law [5]. This period may potentially extend in cases of willful misclassification.
If an employer failed to maintain accurate time records—common with salaried workers—the employee's own records are presumed accurate under Labor Code § 226 [5]. Essentially, the employer bears the burden of disproving the hours claimed by the employee.
Misclassification claims in the technology sector routinely result in six-figure settlements or awards [10]. This occurs partly because California doesn't allow employers to "gross up" or build overtime compensation into fixed salaries [5]. Courts consistently reject retroactive attempts to claim that salaries included overtime compensation.
Technical workers earning a salary and working 50+ hours weekly without overtime may be entitled to thousands in back pay plus penalties [10]. Given that misclassification is particularly common in the technology sector, many computer professionals effectively lose substantial earnings through improper exempt classification [10].
For employees who suspect misclassification, filing a wage claim with the California Labor Commissioner's Office (Division of Labor Standards Enforcement) initiates an investigation that may lead to orders for back wages and penalties [16].
What employers must do to stay compliant
Maintaining compliance with California's computer professional exemption requires vigilant monitoring and precise documentation from employers. Failure to properly manage this exemption can result in costly penalties and litigation.
Keep up with salary updates
Employers must track annual compensation threshold adjustments published by the California Department of Industrial Relations. These updates occur on October 1st each year and take effect the following January 1st [17]. The adjustment percentage directly corresponds to changes in the California Consumer Price Index for Urban Wage Earners and Clerical Workers [13]. For 2026, the threshold increases 3.3% to $122,573.13 annually ($10,214.44 monthly) or $58.85 hourly [13]. Primarily, employers should update payroll systems before implementation dates to ensure continuous compliance [18].
Verify duties match exemption
Employers must regularly audit job responsibilities against the statutory requirements. Documentation of how each employee's work satisfies the duties test serves as critical evidence during potential audits or litigation [18]. Job titles alone never determine exempt status [1]. Accordingly, employers should maintain records demonstrating that exempt employees spend over 50% of their time performing qualifying duties [1]. Furthermore, these assessments should occur regularly as job responsibilities evolve.
Avoid misclassifying part-time or support staff
Technical support personnel seldom qualify for this exemption [10]. Notably, entry-level staff, trainees, and those requiring close supervision cannot be classified as exempt computer professionals [6]. Additionally, employers must refrain from applying this exemption to contractors, part-time employees, or general IT support staff [10]. In light of these restrictions, employers should implement classification protocols that examine both compensation levels and actual work performed rather than relying on position titles or technical credentials.
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