California Legislature Clarifies Overtime Pay Exemption for Computer Professionals

California Employment Law Update

Governor Schwarzenegger signed AB 10, which was classified as an “urgency” bill, on September 30, 2008.  The bill went into effect upon the governor’s signature, modifying California Labor Code section 515.5 immediately.  The bill comes on the heels of a number of class-action lawsuits against California high-tech employers, where employees argued that under the previous version of section 515.5, the salary requirements varied depending on the number of hours the employee worked, making the salary requirement as high as $112,320 for employees working 60 hours per week.  This new legislation is touted as an effort to stop the flow of high-tech jobs out of California by simplifying the compensation requirements for overtime-exempt computer professionals.