Corrected: New 2017 Exempt Classification Rates

Nov 30 2016 - Exempt/Nonexempt - Gail Cecchettini Whaley

California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption. The new rates take effect January 1, 2017. DIR released initial rates on October 5 but later corrected these rates after the U.S. Department of Labor, Bureau of Labor Statistics released a revision to their Consumer Price Index (CPI) which in turn affected the California Consumer Price Index (CCPI).

exempt classification rates licensed physician computer software

The rate is increasing January 1 for the computer software employee exemption and the licensed physician or surgeon exemption.

For the computer software employees’ exemption:

  • The minimum hourly rate of pay exemption increased to $42.35 from its previous rate of $41.85;
  • The minimum monthly salary increased to $7,352.62 from its previous rate of $7,265.43; and
  • The minimum annual salary exemption increased to $88,231.36 from its previous rate of $87,185.14.

For the licensed physician or surgeon exemption:

  • The minimum hourly pay for licensed physicians and surgeons increased to $77.15 from $76.24.

These rates are tied to the CCPI for Urban Wage Earners and Clerical Workers. The 2017 rate changes reflect the 1.2 percent increase in the CCPI.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

CalChamber members can get more information from the HR Library’s computer professional exemption and the licensed physicians and surgeons exemption pages on HRCalifornia. Not a member? See how CalChamber can help you.

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