Overtime Exemption for Computer Software Employees Skip to Main Content CA.gov LinkedIn Flickr Twitter YouTube Bluesky Instagram Press room Careers at DIR Índice en español Settings Translate Reset High contrast Increase font size Font increase Decrease font size Font decrease Dyslexic font Search Menu Custom Google Search Submit Close Labor Law Labor Commissioner's Office Judgment Enforcement Unit Wages Offices BOFE Minors Outreach Policy Databases Opinions Retaliation Training Postings Registration Services Public Works Electrician Certification Cal/OSHA - Safety & Health Cal/OSHA Home Consultation Enforcement Heat Illness Prevention Injury & Illness Prevention Program Partnership Programs Payment Options Permits, Registrations, Certifications, & Licenses Public Safety Required Notifications Worker Safety & Health in Wildfire Regions Workplace Postings Workers' Comp Workers' Comp Home A - Z Index Court calendar Disability Evaluation Unit District Offices Electronic Adjudication Management System Employer Information Independent Medical Review Information and Assistance Unit Injured Worker Medical Unit The Return-to-Work Supplement Program UEBTF & SIBTF Self Insurance Self Insurance Home About Employers Groups Third Party Administrators Joint Power Authorities Audits Forms Regulations Contact Apprenticeship Apprenticeship Home Apprenticeship Search Public Works Sponsors Overview Educators Employers Veterans Director's Office Director's Office Home Office of Legislative and Regulatory Affairs Office of the Director - Research Office of the Director - Decisions and Determinations Press Room Public Works Self Insurance Plans Labor Enforcement About DIR Boards Boards and Commissions Home Commission on Health and Safety and Workers' Compensation (CHSWC) Occupational Safety & Health Standards Board (OSHSB) Occupational Safety & Health Appeals Board (OSHAB) Workers' Compensation Appeals Board (WCAB) Fast Food Council Industrial Welfare Commission (IWC) Office of the Director Overtime Exemption for Computer Software Employees Effective January 1, 2027   Labor Code Section 515.5 provides that certain computer software employees are exempt from the overtime requirements stipulated in Labor Code Section 510 if certain criteria are met. One of the criteria is that the employee’s hourly rate of pay is not less than the statutorily specified rate, which the department is responsible for adjusting October 1st of each year to be effective on January 1st of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers. Assembly Bill 10 (Committee on Budget, Chapter 753, Statutes of 2008) amended Labor Code Section 515.5 effective on September 30, 2008, to extend the exemptions to salaried employees whose annual and monthly salaries are not less than the statutorily specified rates, which the department is responsible for adjusting every October 1st of each year to be effective on January 1st of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers. Data used to adjust these figures is summarized below: Urban Wage Earners and Clerical Workers (all items 1982-84 = 100) Index August 2025 Index Value August 2026 Index Value % Change from 2025 CCPI 342.673 355.379 3.7% In accordance with Labor Code Section 515.5(a)(4), the department has adjusted the computer software employee’s minimum hourly rate of pay exemption from $58.85 to $61.03, the minimum monthly salary exemption from $10,214.44 to $10,592.37, and the minimum annual salary exemption from $122,573.13 to $127,108.34 effective January 1, 2027, reflecting the 3.7% increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers.   October 2026 Office of the Director Research Quick Links Alternative workweek Consumer Price Index Prevailing wage determinations Labor compliance Public Works Injury & Illness Statistics External Resources California Labor and Workforce Development Agency Federal Bureau of Labor Statistics Employment Development Department About OD - Research Contact Us OD - Research Home Back to top About DIR Who we are DIR Divisions, Boards & Commissions Tribal Consultation Contact DIR Work with Us Career Opportunities Licensing, registrations, certifications & permits Required Notifications Public Records Requests Learn More Acceso al idioma Frequently Asked Questions Federal Funding Disclosure Site Map Report a website issue Back to Top Conditions of Use Disclaimer Privacy Policy Nondiscrimination Notice Accessibility Site Help Contact DIR Flickr Twitter YouTube Copyright © State of California   Language Services at DIR Close modal The Department of Industrial Relations (DIR) recognizes the importance of communicating effectively with individuals, including those with limited English proficiency. 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