New 2012 Exemption Rates

November 17, 2011  |  From HRCalifornia Extra

California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption.

Computer software employees:

  • The minimum hourly rate of pay exemption increased to $38.89 from its previous rate of $37.94
  • The minimum monthly salary is now $6,752.19 from its previous rate of $6,587.50
  • The minimum annual salary exemption increased to $81,026.25 from its previous rate of $79,050.00

Licensed physicians and surgeons:

  • The minimum hourly rate of pay exemption increased to $70.86 from its previous rate of $69.13

The new rates are effective January 1, 2012.

These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The rates had not changed since 2008 because there was no net percentage increase in the CCPI. The 2012 rate changes reflect the 2.5 percent increase in the CCPI.

For more, read the DIR memo announcing the rate changes.​​​