2022 Computer Software Employee, Licensed Physician/Surgeon Exemption Rates

As 2022 gets closer, the California Department of Industrial Relations (DIR) has released the 2022 rate changes for the computer software employees exemption and the licensed physicians and surgeons exemption. These new rates take effect on January 1, 2022.

To be considered an exempt computer professional, a computer software employee must meet certain requirements, such as being highly skilled and proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming and software engineering. However, even computer professionals who don’t meet those requirements could still qualify as exempt under one of the other exemptions, such as the administrative or professional exemption. For the computer software employees’ exemption:

  • The minimum hourly rate of pay exemption increased to $50 from its previous rate of $47.48;
  • The minimum monthly salary increased to $8,679.16 from its previous rate of $8,242.32; and
  • The minimum annual salary exemption increased to $104,149.81 from its previous rate of $98,907.70.

A licensed physician or surgeon primarily engaged in performing duties for which licensure is required is exempt from overtime if they’re paid at least the minimum hourly rate set annually by the state. For the licensed physician and surgeon exemption:

  • The minimum hourly pay for licensed physicians and surgeons increased to $91.07 from $86.49.

These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The 2022 rate changes reflect the 5.3 percent increase in the CCPI.

Remember that California’s minimum wage will also increase on January 1, 2022 — this increase will affect the commonly used professional, executive and administrative exemptions. Individuals in these classifications must be paid at least two times the state minimum wage, in addition to meeting all other legal requirements for this exemption.

Katie Culliton, Editor, CalChamber

CalChamber members can read more on the Computer Professional Exemption and the “Exemption for Physicians Paid on an Hourly Basis” on the Professional Exemption pages in the HR Library. Not a CalChamber member? See how CalChamber can help you.

Leave a Reply

Your email address will not be published. Required fields are marked *