In California’s fast-moving tech economy, thousands of software engineers, developers, and IT professionals are paid high salaries—yet receive no overtime pay. Why? Because they’re classified as exempt under Labor Code § 515.5, which carves out a special overtime exemption for “computer software professionals.”
But this exemption comes with strict legal requirements—and most tech employers don’t get it right.
At Employees First Labor Law, we help misclassified workers reclaim the overtime, breaks, and penalties they’re owed under California labor law. If you work in tech and are salaried or highly paid hourly, this article is for you.
👩💻 What Is the Computer Professional Exemption?
California’s Labor Code § 515.5 allows certain highly skilled computer professionals to be classified as exempt from:
- Overtime pay
- Meal and rest breaks
- Timekeeping rules
…but only if they meet both of the following:
- The Duties Test – involving independent, intellectual computer work, and
- The Salary Test – earning a minimum amount set by law, adjusted each year for inflation.
💵 2025 Salary Threshold for Exempt Computer Professionals
To qualify as exempt in 2025, a computer software professional must be paid:
- $56.97/hour, or
- $9,888.13/month, or
- $118,657.43/year
These rates are adjusted annually by the California Department of Industrial Relations based on the Consumer Price Index (CPI).
📌 No proration is allowed. Part-time employees cannot qualify under this exemption—even if they’re paid more than $56.97/hour.
📊 Historical Salary Thresholds (2023–2025)
| Year | Hourly Minimum | Monthly Minimum | Annual Minimum |
|---|---|---|---|
| 2025 | $56.97 | $9,888.13 | $118,657.43 |
| 2024 | $55.58 | $9,646.96 | $115,763.35 |
| 2023 | $53.80 | $9,338.78 | $112,065.20 |
Source: California Department of Industrial Relations (DIR)
Even small changes to these rates can affect compliance. Employers must update compensation every time minimum wage changes to remain legally compliant.
The Job Duties Test – It’s Not Just About Pay
To qualify for the exemption, your actual job duties must involve:
- Systems analysis, software design, or development
- Application of independent judgment and discretion
- High-level work requiring theoretical and practical computer knowledge
Examples of qualifying roles:
- Senior software engineers
- Systems architects
- DevOps engineers
- Backend/full-stack developers with substantial coding responsibility
Examples of roles that often do not qualify:
- IT helpdesk or support staff
- QA testers who don’t write code
- Junior developers under supervision
- Techs who follow established routines or protocols
🧠 Job title alone is irrelevant. The law focuses on what you do, not what your business card says.
What Happens If You’ve Been Misclassified?
If your employer improperly classifies you as exempt under § 515.5, you may be owed:
- Unpaid overtime (1.5× or 2× your regular rate)
- Meal and rest break premiums
- Penalties for inaccurate wage statements
- Waiting time penalties (up to 30 days of pay)
- Attorneys’ fees and interest
Misclassification lawsuits in the tech industry frequently result in six-figure settlements or awards.
Calculate what you are owed using our Wage & Hour Calculator.
What Employers Must Do
To stay compliant, California tech employers must:
- Ensure employees actually qualify under the duties test
- Pay the current year’s rate—updated every January 1 or July 1
- Keep clear records of duties and pay
- Avoid using this exemption for contractors, part-timers, or general tech support staff
Violations can lead to class actions, DLSE audits, and costly civil penalties.
📞 Think You’re Being Cheated? Contact EFLL.
If you’re a California tech worker earning a “salary” and expected to work 50+ hours per week without overtime, we want to hear from you. Wage theft is a serious problem. You may be entitled to thousands in back pay and penalties—even if you agreed to the classification.
At Employees First Labor Law, we specialize in wage theft, misclassification, and employee rights in high-skill sectors like tech and healthcare.
✅ Free, confidential consultations
✅ No upfront fees—we only get paid if you win
✅ Millions recovered for California employees
📩 Schedule a consultation
📞 Call us now to speak with an employment law attorney
