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  • New 2020 Exempt Classification Rates

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    November 06, 2019

    California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician and surgeon exemption. The new rates take effect January 1, 2020.

    For the computer software employees’ exemption:

    • The minimum hourly rate of pay exemption increased to $46.55 from its previous rate of $45.41;
    • The minimum monthly salary increased to $8,080.71 from its previous rate of $7,883.62; and
    • The minimum annual salary exemption increased to $96,968.33 from its previous rate of $94,603.25.

    For the licensed physician and surgeon exemption:

    • The minimum hourly pay for licensed physicians and surgeons increased to $84.79 from $82.72.

    These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The 2020 rate changes reflect the 2.5 percent increase in the CCPI.  Read More