The California Department of Industrial Relations (DIR) announced an increase to pay rates for physicians and computer software employees to be exempt from overtime pay. This adjustment is in relation to inflation. The new hourly rate for physicians is $101.22. The new hourly rate for computer software employees is $55.58. This rate translates to a monthly salary of $9,646.96 or an annual salary of $115,763.35.

The minimum salary for executive, professional, and administrative overtime exemptions is also increasing. The new weekly rate for those under these categories is $1,280 per week.

Eligible employees who do not meet the salary minimums outlined above may not be considered exempt from overtime pay. This law will go into effect on January 1, 2024.

This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.