California Overtime pay for Computer Professionals

If you are a computer programmer or software developer in California, you may be under the mistaken assumption that you are unable to collect overtime. The good news is, you may be entitled to overtime pay if you are salaried and work in the computer software industry. Both federal and state law require overtime pay for computer professionals who work over forty hours a week and are not considered exempt. In California, if you are determined to be non exempt you are entitled to daily overtime when working over 8 hours, at time and one half. Additionally, you are entitled to double time when working over 12 hours.

It is not unusual for computer programmers and software developers to work extremely long hours, often up to 60-70 hour a week. Companies often deny the payment of overtime under the mistaken assumption that these employees are considered exempt from overtime.

Whether or not you are able to receive overtime pay is, in part, determined by California Labor Code Section 515.5. This code section defines narrow standards where a computer software professional would be exempt from receiving overtime. If you do not fall within these standards, or another exemption does not apply, then you are in fact entitled to receive overtime. To review the section in its entirety, refer to California Labor Code Section 515.5.

The computer-related exemption contained in this section sets forth various requirements for the exemption to apply. Generally these requirements include:

  •  The job title must be very specific, as set forth in the code section. Titles include computer systems analyst, computer programmer, application systems analyst, etc.
  •  Employee is primarily engaged in creative or intellectual work that requires discretion and independent judgment.
  •  Employee is highly skilled and proficient in theoretical and practical application of specialized information.
  • Must be paid at least $37.94 per hour, and not less than $6,587.50 per month.
  • Primarily engaged in duties that involve application of system analysis techniques and procedures, design, documentation, or creation of computer systems or programs, software, or hardware for operating systems.

The employer has the burden to prove that you fall into this, or possibly another overtime exemption category. Other exemptions include: executive, learned professional, creative professional, outside sales, highly compensated jobs and physicians & surgeons. All these exemptions however, are fairly specific and narrow. California employers often misinterpret these exemptions to their benefit. The savvy employer will alter job descriptions or pay levels to avoid paying overtime. Unfortunately, employers have had a lot of leeway to interpret these exemptions as they see fit. However, recent California class action lawsuits have been brought by employees on this issue and have prevailed.

How do you prevent from being short changed if you think you should be paid overtime? The key here is for employees to know their rights. Stay current on employment law standards as they apply to you and contact a California labor law attorney. Have an attorney review your specific set of circumstances. You may find that you are eligible for overtime and are even entitled to back pay (up to 4 years in California) for previous overtime earned.
 

California Computer Programmers Entitled to Overtime Pay

If you are one of the over 200,000 computer software professionals in California, your employer may be short changing you when it comes to overtime pay.  Employers and employees generally assume that salaried professionals are exempt from receiving overtime pay, but this is far from true.  Computer programmers and software developers are generally entitled to overtime pay unless they fall within one of the California exemptions which allow employers to not pay overtime.

 

To qualify for the “computer professional” exemption, an employee must meet the following requirements under California Labor Code, Section 515.5:


   (1) The employee is primarily engaged in work that is intellectual or creative and that requires the exercise of discretion and independent judgment, and the employee is primarily engaged in duties that consist of one or more of the following:
 

(A) The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications.
(B) The design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to, user or system design specifications.
(C) The documentation, testing, creation, or modification of computer programs related to the design of software or hardware for computer operating systems.
  

(2) The employee is highly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, programming, and software engineering.  A job title shall not be determinative of the applicability of this exemption.

In addition, the employee’s rate of pay must be equal to or greater than $37.94 per hour or $79,050 per year and this must be paid in amounts not less than $6,587.50 per month.  On November 3, 2009, the California Division of Labor Standards Enforcement (DLSE) confirmed that these rates remain in effect for 2010. 

It is the employer’s legal burden to prove that ALL of the aforementioned qualifications are met, and that the employee does not fall under another exemption ie. Administrative,

Executive or Professional, then the employee must be paid all overtime.  It is not uncommon for employers to misclassify employees or alter their pay structure in order to avoid legally required overtime compensation.  There are a substantial number of Class Action Cases that have prevailed on this point against the largest Fortune Five Hundred Companies.  This practice typically goes unchecked, because employees rely on their companies to know and follow the law and it is not uncommon that companies do not adequately police themselves.

The best way to counteract attempts by employers to avoid payment of overtime is for employees to know their rights.  If you are a computer professional and believe you may be entitled to overtime, take the time to contact an experienced California labor attorney.  An attorney can provide you with an unbiased evaluation of your situation and may be able to help you collect several years of back overtime pay.  

California Layoffs and Why Computer and IT Employees are Suffering So Much

California and especially the Silicon Valley has long been the hub of computer and software manufacturing in the United States.

With recent layoffs by Yahoo , Hewlett Packard , Lockheed Martin, and others, IT and computer professionals are facing challenges they have never seen in the past.

With the advent of the H1B workers that are entering this company in droves as well as thousands of jobs that are shipped overseas, the laid off computer employee is having fewer and fewer options.

One saving grace, and a little known part of the California labor law is that most computer and IT employees are in fact entitled to overtime pay.

California computer employees are offered additional protections under California labor code 515.5. , Under this statute, those that meet the definition of a computer software professional ie. Code writers, must be paid the minimum under the law and unless otherwise exempt, are entitled to overtime pay.”

At a time when the bills keep coming in and the income has all but stopped or is just trickling in, computer employees are encouraged to find out If they are entitled to back overtime pay.

Employees in California may look back up to 4 years to determine, if they are, in fact entitled to back overtime pay. Furthermore, if they were misclassified, they could be entitled to not just their back overtime pay, but interest and possibly penalties as well. Knowledge is power.

 

Strategy:

1. Gather a paystub or W-2
2. Gather one or more performance evaluations or a job description.
3. Tally or estimate the total hours you worked without being paid overtime.
4. Contact a California labor law attorney to assist you in determining if you are entitled to overtime pay.