Bryan Cave Labor and Employment Blog

Bryan Cave At Work

Other Posts

Main Content

2018 Exemption Limits for the Computer Professional and Physician Exemptions

Effective January 1, 2018, California’s Department of Industrial Relations will begin imposing new rates for the computer software employee exemption and the licensed physician and surgeon exemption to reflect a 2.9% increase in the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers.

To be exempt from overtime requirements, a computer software employee’s rates have increased as follows:

  • Minimum hourly rate:  From $42.35 to $43.58
  • Minimum monthly salary:  From $7,352.62 to $7,565.85
  • Minimum annual salary:  From $88,231.36 to $90,790.07

The minimum hourly pay for licensed physician and surgeon exemption has increased from $77.15 to $79.39.

Relatedly, the professional, executive and administrative exemptions will also be subject to change after the minimum wage increase takes effect on January 1, 2018.  To qualify as exempt under these classifications, employees must be paid at least two times the state minimum wage in addition to meeting the other exemption

The California Supreme Court Provides Guidance on Day of Rest Requirements

The California Supreme Court clarified employer obligations under the state’s day of rest statutes, Cal. Labor Code §§ 550-558.1, which entitle employees to one day’s rest in seven.  In Mendoza v. Nordstrom, Inc., 2 Cal. 5th 1074 (2017), a case that was (mostly) good news for employers, the Court unanimously upheld interpretations of the requirement that largely preserved scheduling flexibility for employers and employees alike.

Three questions were certified to the Court for consideration:

  • Is the day of rest required by sections 551 and 552 calculated by the workweek, or does it apply on a rolling basis to any seven-consecutive-day period?
  • The day of rest requirement is calculated by workweek.  After finding the plain language of sections 551 and 552 “manifestly ambiguous” and the legislative history irrelevant to the dispute, the Court held that the regulatory and statutory schemes of the day of rest laws required the day of

    The attorneys of Bryan Cave LLP make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.